One of the most useful features a POS can offer and that a café or restaurant can use is the ability to accept gift and prepaid cards. Why? Because they increase your earnings when done properly.

Only at your coffee shop can customers use that money. Even though it seems obvious, this is one of the best justifications for giving a gift or prepaid card. Once that money is put on the card, the customer must use it with you or risk losing it. That implies that the customer will probably return in the coffee and restaurant industries. The money cannot be used at Starbucks or any rival businesses. Furthermore, you get that cash in either case. Having the customer return is ideal, but it’s still a success.

They’ll spend more money. According to numerous studies, the typical consumer spends 20–50% more on small purchases than the value of their gift card. In other words, if a customer receives a $20 gift card, they will probably also spend more money. Customers frequently add upgraded items to their orders, order more food or drinks, or buy extra coffees.

When gift cards are used, the average price per ticket rises. This is somewhat different from the previous item. A customer is much more likely to order an upgraded drink, add more items, or buy the larger size when paying with a gift card if they have money on a gift or prepaid card. Remember, it is a “No Guilt” transaction to the customer. They figure why not splurge a little since they know they can’t spend the money elsewhere.

Gift cards are a “no guilt” transaction. This simply means that we have no regrets about using gift or prepaid card funds at your establishment. A customer will KNOW they just spent $14.40 if they hand you $20 and receive $5.60 in return. They know in the back of their minds that they will eventually have to make a payment if they give you a credit card. They can see it on their statement as well. A gift or prepaid card is different. The initial transaction is where they feel the tiniest pinch or twinge of how much they spent. There is no longer any remorse for spending the money with you after that. They are aware that they cannot spend it elsewhere.

They might be able to lower your credit card fees. Gift cards will be beneficial if you pay a swipe fee on your credit card transactions. A gift card transaction that is carried out properly has no swipe fee. This means that you are saving between $.10 and $.15 per gift card transaction by not having to pay the $.10 to $.15 credit card swipe fee. For instance, if you charge $.15 per credit card swipe, a customer using ten gift cards can save you $1.50. The cost per day is $7.50 if there are 50 gift card transactions per day. That is $2,700 a year that will be returned to the cafe or coffee shop.

They can lessen theft. Less theft results from a decline in cash transactions. You’ll have fewer cash transactions when customers use gift or prepaid cards. The ability of employees to pocket money is hampered as a result. Because a transaction is required to load a gift card, they are more difficult to steal. This method is much safer than using a gift certificate. Additionally, until they are activated, gift cards are nothing more than plain plastic if they are stolen. Finally, unlike with a paper loyalty program, employees cannot simply double punch or add points to a card.

They give you virtually unlimited marketing opportunities. From a marketing perspective, gift, prepaid, and rewards cards give you flexibility. Hand them out to the plumber, electrician, or the person who sold your house, use them as a reward or loyalty system, or treat them like a business card with money on them. Offers include buy $20 get $25, a free drink with purchase, and many more.