Top 5 Mistakes to Avoid When Offering Gift Cards Online

Digital gift cards are one of the most flexible ways to drive revenue. They bring in cash upfront, attract new customers, and are easy to scale. But when businesses launch gift cards without a clear strategy, things can go sideways fast.

If you’ve ever asked, "Why is my gift card program underperforming?" — or worse, "Why did it fail?" — this guide will help. We’ll walk through the most common mistakes brands make when offering digital gift cards online, how to avoid them, and what to do instead.

Whether you're just getting started or trying to fix a program that’s already live, these lessons apply.

1. Launching Gift Cards Only During the Holidays

Offering gift cards only during Black Friday or Christmas? You’re missing out.

Yes, the holiday season is when gift cards are most visible. But buyers look for gift cards year-round — for birthdays, graduations, thank-you gifts, and employee rewards.

The mistake: Making gift cards a seasonal promo instead of a permanent part of your offer.

The fix:

• Keep gift cards available on your website at all times.
• Add a link in your top navigation or site footer.
• Promote them in birthday email flows or thank-you campaigns.

A consistent presence builds long-term awareness — and long-tail revenue.

2. A Frustrating Redemption Experience

If it’s hard to redeem a card, people won’t bother.

Common issues:

• Gift cards don’t work on mobile.
• Promo cards require extra steps to activate.
• Redeeming the card triggers a checkout error.

The mistake: Focusing only on the purchase experience, and not the redemption.

The fix:

• Test your gift card flow from a customer’s perspective.
• Make sure the code field is visible and works on mobile.
• Include a “How to redeem” link in the delivery email.

Bonus: Send a reminder email a few weeks after delivery with the balance and a direct link to shop.

3. No Fraud or Abuse Protection

Digital gift cards are targets for scammers. If you’re not protecting your system, you could face chargebacks, drained cards, or reputation damage.

The mistake: Launching cards without fraud rules in place.

Common fraud types:

• Brute-force bots guessing codes
• Chargebacks from stolen payment methods
• Promo cards being used multiple times

The fix:

• Limit redemption attempts per card or IP address
• Randomize codes and make them hard to guess
• Monitor for suspicious buying or redemption patterns

Platforms like Ncentiva include built-in fraud detection and usage limits, so you don’t have to start from scratch.

4. Unclear Terms and Conditions

Customers want to know:

• Does the card expire?
• Can I get a refund?
• What if I only use part of it?

If you don’t answer these questions upfront, they’ll either abandon the cart or flood your inbox.

The mistake: Burying or skipping clear gift card terms.

The fix:

• Show key terms on the gift card purchase page.
• Include a link to full terms in the delivery email.
• Use plain language — skip the legalese.

This builds trust and reduces support tickets.

5. One-and-Done Mentality

Most brands send a gift card and… that’s it. No follow-up, no reminder, no tracking.

The mistake: Treating gift cards as single-use revenue instead of a customer relationship tool.

The fix:

• Remind customers of unused balances
• Suggest products they can buy with what’s left
• Track how many gift card users become repeat buyers

This is where real ROI happens — not at the point of sale, but in what comes after.

Bonus Mistakes to Watch For

• Gift cards with generic or low-effort designs — They won’t feel gift-worthy.
• Only offering via email — Add SMS delivery or account-based access.
• Not tracking usage and breakage — You can’t improve what you don’t measure.

Quick Takeaways

• Gift cards should be available year-round, not just seasonally.
• A smooth redemption experience is just as important as a smooth checkout.
• Without fraud protection, you’re vulnerable to chargebacks and abuse.
• Clear, visible terms reduce confusion and boost conversions.
• Ongoing engagement (reminders, product nudges) increases ROI.

How Ncentiva Helps

Ncentiva makes it easy to launch secure, high-performing digital gift cards with:

• Built-in fraud monitoring
• Optimized delivery and redemption flows
• Custom designs and flexible expiration settings
• Usage tracking and reminder automation

Whether you’re starting fresh or revamping a failing program, Ncentiva gives you the tools to make it work.

Want to avoid common mistakes and build a better gift card strategy?
Talk to Ncentiva →

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