Selling gift cards at your salon: setup, rules and tracking balances
How to run a gift card program for a service business: physical vs. digital cards, peak seasons, expiration rules and correct bookkeeping.
Short answer: Gift cards bring new clients in and cash up front. Do it well by selling both desk and digital cards, tracking every card's balance in your system, promoting around holidays, and following expiration rules.
Why sell gift cards?
- New clients: recipients are often people who've never visited.
- Cash up front: you're paid when the card is sold.
- Extra spend: many clients spend beyond the card value.
Plastic, digital or paper?
| Type | Pros | Watch out for |
|---|---|---|
| Plastic card with code | Looks great as a gift | Printing cost, activate at sale |
| Digital card | Bought online, delivered instantly by email or text | Needs an online store page |
| Handwritten paper | Cheap | Easy to fake, hard to track |
Peak seasons
Year-end holidays, Mother's Day, Valentine's Day and graduation season. Start promoting a few weeks early, display cards at the desk, and mention them at checkout.
Rules to remember
- Federal law generally prohibits gift card expiration within 5 years and limits dormancy fees. Some states go further.
- Some states have rules about balances left unused for many years.
- Print the terms of use on the card.
Track balances properly
- Every card has its own code, stored in your system, never in a notebook.
- Deduct the balance on the ticket when it's used.
- Review total outstanding balances monthly.
- Credit staff commission when the card is redeemed for a service, not when it's sold (or per your policy).
This is general information, not legal or accounting advice.
Kashela lets you sell and redeem gift cards at the desk and tracks every card's balance. See the Pro plan.
Frequently asked questions
Can gift cards expire?
Under US federal law, gift cards generally can't expire within 5 years of issue, and some states are stricter. Check your state's rules.
Is gift card money revenue right away?
For accounting, it's an amount you owe the client until they use it. Revenue is recorded when the card is redeemed.
Physical or digital gift cards?
Offer both: nice cards to hand over at the desk, digital cards for last-minute buyers on their phones.