Being a successful merchant is SaleTerminal’s introduction to merchant payment techniques. Each post introduces a new core concept that merchants and store owners should consider when running a successful business. These blog posts are meant for both new and seasoned store owners, and offer a new insight in what it takes to run a business.
Setting up and
accepting gift card payments can be an important revenue stream for small
businesses when they first start. Yet, this is one of the most often overlooked
forms of electronic payments by new businesses. Here are just a few reasons why
you should talk to your merchant account provider about setting up a gift card
system.
Increase Your Sales
It’s no mystery that when customers spend the balance on a
gift card, they tend to
spend more money than was put on the card. Encouraging customers to use
gift cards often results in increased average sale order for businesses. This
bump to your bottom line can be huge for a new store.
Improve Your Store’s Reach
Gift cards are by definition given as gifts. This is a great
way for your current customers to introduce your store or brand to new
potential customers. Combined with gift cards that prominently feature your
logo, gift cards can become an excellent indirect marketing tool.
Get Paid Upfront For Your Sales
When a customer purchases a gift card, you are paid upfront
for the future sale. This puts money in your account before having to deplete
your inventory. This increases your equity with a short term interest free
liability. Gift cards help improve your cash flow, and not to mention any gift
cards that go unredeemed are free money for your business!
