LionWise POS shows you the way to Gift Card Profitably

Whether you have a Point of Sale (POS) System or are still using a cash register, you can begin a Gift Card Program that can help you generate more profitability.

Gift Card Programs

The great folks here at LionWise pass along this information to everyone, even the few left that don’t yet have a LionWise POS system.

 The major advantage of selling Gift Cards is having the cash in your pocket today for sales that will occur down the road. Also, many Gift Cards that are purchased may never be redeemed. This is called breakage and can run as high as 30 percent for many operators. In other words, for every dollar in Gift Card sales, 30 cents is never redeemed.

There are two types of Gift Card programs that are associated with a POS System. Either the POS company has a software module to do Gift Cards internally or theyhave an interface with a third party Gift Card company.

 A third party Gift Card company can manage Gift Cards for operators who are using either a POS System or a cash register. A charge to the restaurant operator is made every time the Gift Card is swiped through the magnetic card reader. A swipe could be to check a balance on the card, add more value to the card or to redeem value on the card.  This charge is negotiated with the third party Gift Card company and the potential gift card volume of the restaurant owner’s property is a main factor in determining this rate.

 In contrast, some POS Systems have a software module to do Gift Cards internally with a one time charge for a software license to use the program. There are no swipe charges because the Gift Card program is managed internally by the restaurant operator. One of the main questions that should be asked by operators thinking of implementing a Gift Card program should be, From whom do I purchase my Gift Cards?

 Many third party Gift Card companies consider this a main source of their revenue and will require Gift Cards to be purchased through them. This can be very expensive.

The cost of Gift Cards have two factors. One is the amount of artwork/colors used on the card and the other is the total number of cards that are ordered.


For more great information about Gift Cards and and utilizing them with the best-in-class POS system on the planet, give us a call at 603.929.0020…or visit us at our GROOVY WEBSITE   

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