Differences Between Gift Card vs Store Credit On Shopify

In this article, we wil talk about the differences between gift card and store credit. These two terms could be confusing for merchant because their essence is practically the same cash that your customer can spend at your store. Understanding the difference will help you refining your loyalty program and the incentives that you give out to your customers.

Let’s dive in and we will talk all about it!

Definition and purpose of gift cards and store credit on Shopify

Gift cards

Gift cards are prepaid cards with a specific value assigned to them, typically purchased by customers for themselves or as gifts for others. They serve as a form of currency within a specific store or business, allowing recipients to make purchases up to the value of the gift card. Gift cards are often presented physically or sent electronically, containing a unique code or barcode that can be redeemed during checkout.

Store Credit

Store credit, on the other hand, is an amount credited to a customer’s account within a specific store or online platform. It is often granted as a result of a return, refund, or other transactions within the store. Store credit is not limited to a specific monetary value but represents a flexible credit balance that can be applied partially or fully towards future purchases. You can see the potential benefits of store credit when selling on Shopify here.

While both gift cards and store credit can be used to make purchases, their fundamental differences lie in their origins and intended purposes. Gift cards are primarily designed as prepaid cards for gifting or personal use, while store credit is a credit balance that serves as a payment method for future transactions within the same store.

Differences Between Gift Card vs Store Credit On Shopify

Nature of value

Gift Cards

Gift cards have a fixed value assigned to them, typically determined by the purchaser. The value is preloaded onto the card and remains constant until the card is used for purchases. The predetermined value can be chosen from a range of options or can be customized based on the customer’s preference. For example, a gift card may have a value of $25, $50, $100, or any other specific amount.

The nature of value in gift cards means that the recipient can utilize the full value of the gift card for one or multiple purchases until the balance is exhausted. They can choose products or services within the store that they wish to purchase, as long as the total cost does not exceed the available balance on the gift card.

Store Credit

Store credit, on the other hand, represents a flexible credit balance rather than a fixed value. It is not limited to a specific predetermined amount like gift cards. Instead, the value of store credit can vary depending on the customer’s transactions within the store.

Store credit is often granted as a result of returns, refunds, loyalty programs, or other promotional activities. For example, if a customer returns a product worth $50, they may receive a $50 store credit that can be used towards future purchases. The store credit balance remains in the customer’s account until they choose to redeem it.

The nature of value in store credit allows customers to apply the credit partially or in full towards purchases. They can use store credit to make multiple transactions until the credit is fully utilized. If the purchase amount exceeds the store credit balance, customers can use another payment method to cover the remaining balance.

Usage and Redemption of gift card vs store credit

Gift cards

Gift cards are generally given as gifts or promotional incentives. They can be used by anyone who possesses the card, either the purchaser or a recipient. Customers redeem gift cards by entering the unique code or scanning the QR code at checkout.

Store credit

Store credit is specific to an individual customer and is typically linked to their account. It is often granted as a result of returns, refunds, or customer loyalty programs. Store credit is automatically applied to eligible purchases during the checkout process.

Gift card & store credit – Flexibility and Restrictions

Gift Cards

Gift cards provide customers with the freedom to choose their desired products within the store’s offerings, up to the value of the card. However, some gift cards may have limitations or restrictions on specific products, sales, or expiration dates, depending on the store’s policies.

Store Credit

Store credit offers greater flexibility since it can be applied to any product or service offered by the store. It may also be subject to certain limitations or exclusions, depending on the store’s policies.

Customer Experience and Retention

Gift Cards

Gift cards make for great presents and incentives, providing a positive customer experience. They can attract new customers to your store, encourage repeat purchases, and increase customer loyalty.

Store Credit

Store credit can improve customer satisfaction by offering a convenient way to handle returns or refunds. It also encourages customers to come back and shop again, as they have a credit balance waiting to be used.

Conclusion

Understanding the differences between gift cards and store credit on Shopify is crucial for tailoring your payment options to meet customer preferences and drive sales. Gift cards are perfect for gifting and promotions, while store credit serves as a flexible payment method and enhances customer loyalty. By utilizing both features strategically, you can provide a seamless and enjoyable shopping experience for your customers while boosting your store’s growth and success.

Recent Posts

Unleash the Power of Shopify: Explore the Must-Know Shopify Features

Choosing the right e-commerce platform as a first-time online store owner is now tricker than ever. If you have already started your research, you might have already come across Shopify. But what Shopify features make the platform a worthy competitor in the market? Year by year, there are tons of platforms popping up, and more and more stores are coming up online, trying to meet the growing demand of shoppers. What fuels this growth...
How to Delete Shopify Account & Cancel Shopify Subscription

How to Delete Shopify Account & Cancel Shopify Subscription?

Shopify has emerged as one of the leading e-commerce platforms, empowering businesses of all sizes to create and manage their online stores effortlessly. With its user-friendly interface, robust features, and extensive marketplace, Shopify has gained immense popularity among entrepreneurs and merchants worldwide. However, there may come a time when you need to part ways with your Shopify account and cancel your subscription. In this...
how to add or change favicob in shopify

How to add or change your favicon on your Shopify store ?

Have you ever heard of the word favicon?  If you are the kind who likes to open many browser tabs at once while working, I am sure that you also struggled to identify a tab in the browser sometimes, when there are too many tabs being opened and the titles are showing just too short to read. Favicons are your life-saver these times.   Can’t find a tab in the browsers  So, what is a favicon, and what’s it...
What is shopify partner program and how to create an account

What is a Shopify Partner? How to create an account?

Are you looking for a way to supplement your income to help you with your business? If so, Shopify would be the best choice for you. You can become a Shopify Partner by enrolling in the Shopify Partner Program. This program allows you to earn money, which may sound appealing, but it requires serious and hard work. Now, let’s look at how great it is to be a Shopify Partner and how to get started. What exactly is a Shopif...
use shopify gift card for customer feedback and review

How to Use Gift Cards for Customer Service: Turning Negative Experiences into Positive Ones

Customer service is a critical aspect of running a successful online business, and resolving negative experiences in a satisfactory manner can turn dissatisfied customers into loyal brand advocates. One effective tool for enhancing customer service on the Shopify platform is by utilizing Shopify gift cards. In this article, we will explore how businesses can leverage Shopify gift cards to address customer complaints, turn negative expe...
Vify gift card app vs Shopify's

Vify Gift Card App vs Shopify's: A Comprehensive Comparison

In today’s digital age, gift cards have become a popular choice for both businesses and consumers. They offer convenience, flexibility, and a personalized touch to the gifting experience. However, with a plethora of options available, it can be challenging to decide which platform best suits your needs. That’s why we’re here to help. In this comprehensive comparison, we will evaluate Vify Gift Card App and Shopify...
shopify gift card app for brand awareness

Shopify Gift Cards for Brand Awareness: How to Use Effectively

Gift cards can serve as powerful tools for increasing brand awareness and visibility. By strategically incorporating gift cards into your marketing efforts, you can effectively capture the attention of your target audience and generate positive brand associations. The versatile nature of gift cards allows for creative and engaging initiatives that not only reward existing customers but also attract new ones. In this article, we wil...
use shopify giftcard for customer loyalty

How to Use Shopify Gift Cards App To Drive Customer Loyalty

Customer loyalty is crucial for the success of any e-commerce business. By implementing effective strategies to foster loyalty, businesses can boost customer retention, increase sales, and enhance brand reputation. One such strategy is leveraging the Shopify gift cards – both built in product and third party app. They are powerful tools that enables businesses to incentivize customers and encourage repeat purchases. In this d...