When you make gift cards for your business, you should also make a policy for how those gift cards are used. A good policy can help you avoid misunderstandings, protect your business from income loss, and keep your customers coming back. It is not necessary for the policy to be sophisticated. In fact, it’s preferable if it isn’t. An ideal policy would consist of a set of simple regulations that are fairly enforced. Here are a few pointers for creating and enforcing gift card policies.

Get Familiar with Gift Card Laws

The federal government enacted the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (the CARD Act) to safeguard consumers by regulating retail and bank gift card rules. The Act covers both retail cards that can only be used in specific stores and bank cards with the Visa or MasterCard logo. According to the document:

• Gift cards must be used within five years of the date of purchase or the last time money was loaded onto the card.
• Fees for not using the card are not allowed unless it has been inactive for a year. Inactivity fees can be charged no more than once a month after that year.
• Customers may be charged a price to purchase a card or to replace one that has been lost or stolen.
• The expiration date must be clearly stated on the card.
• On the card or its packaging, all fees must be clearly stated.

Gift card policies are also regulated by state laws. You should check your state’s laws as they differ by state. The laws effect expiration dates and fines in general, and some state regulations are more strict than federal rules.

Being cautious and ensuring that the policies you design comply with all applicable regulations is a smart idea. While looking at other firms’ policies is completely acceptable while developing your own, keep in mind that businesses operating in various states may be subject to slightly different legislation than yours. If you’re unsure, consult a lawyer.

Inform Customers About the Different ways of Using Gift Cards

The technology you choose to manage your business will determine how clients can utilize their gift cards. Will the gift cards, for example, be valid both online and in-store? You’ll need to tell clients how to use their cards online if they can. You should also make it clear that cards are only redeemable for merchandise or services, not cash, unless otherwise required by law.

Explain the Way for Customers to Check Gift Card Balances

Your current POS system will have a significant impact on how you manage gift cards. Put yourself in your customer’s shoes and tell them how to check gift card balances the easiest way possible. You may be able to tell them over the phone or online, or they may need to bring the card into the store.

Tell Customers How to Replace Lost or Stolen Gift Cards

When business owners plan promotions, they frequently focus on how to sell more cards while overlooking the downside: What if cards that have already been sold are lost or stolen? Just in case, you’ll want to set a policy in place. Balances may be tracked by your POS system. It’s also possible that lost cards aren’t replaceable. In either case, informing customers ahead of time can help avoid future conflicts.

Enforcing Gift Card Policies

Creating effective gift card policy is only half of the battle—enforcing them is the other half. And communication is the cornerstone of correctly enforcing gift card policies.

Start with clarity. Have a few people examine your gift card policy after you’ve written it. You might want to print multiple copies of the policy (one for each reviewer). Give the policy to each reviewer separately. Request that they highlight anything that is unclear. If the majority of reviewers agree on the same points, you should rewrite them to make them more obvious.

Your team should be aware of the policy. When the policy is complete, distribute it to your employees. Use whatever official communication methods you’ve established, whether it’s presenting it at a monthly meeting, posting it on the breakroom wall, or sending an email. It’s possible that you’ll need to share the information multiple times until everyone understands the policy. When discussing ways to market gift cards, make sure to include the policy for utilizing such gift cards as well.

Customers should be aware of the policy. It’s time to distribute gift cards to customers after your entire team is aware of the gift card policy. Make sure that customers can easily access and understand the policy when you do so. Include it in your card packaging and make it available on your website.

Ready to Create & Enforce Your Gift Card Policies?

You may feel comfortable that if you follow these steps, you’ll have a sound policy in place and a team ready to implement it. Concentrate on using those gift cards to boost sales and attract new customers!

You can also easily use ready-made and valid gift cards. If you do not have a business that needs to create a gift card, you can buy the best-selling gifts in the world in bulk from EZ PIN and grow your business.

What do you think about creating and enforcing gift card policies?