Last updated: 2026
Did you know that 74% of people regularly buy gift cards from small businesses?
Implementing a gift card program can transform small businesses by boosting upfront cash flow. This is especially true for those in the retail, hospitality, and restaurant sectors. In fact, gift cards rank as the second-most popular gift this holiday season and total spending on gift cards is expected to reach $29 billion this year.
Gift card programs for small businesses can be a remarkable tool for enhancing brand visibility, customer loyalty, and sales. But most merchants hit the same wall: How does this actually work? What does it cost? And what am I really signing up for?
This guide answers those questions clearly so you can make a confident decision.
Gift cards are one of the simplest ways to drive revenue and bring in new customers without adding complexity to your operations.
Most program costs include:
For example, DataCandy’s pricing includes a one-time implementation fee of $300, along with a monthly fee of $40 per location. There are no transaction fees, and unlimited transactions are included in the plan.
A gift card program is more than just selling prepaid value, it’s part of your payment flow.
Here’s what happens behind the scenes:
When a card is sold:
When it’s redeemed:
This is why POS integration is critical. Without it, you risk slow checkouts, manual errors, and disconnected reporting.
If you’re launching a gift card program in Canada, the rules are relatively straightforward and designed to protect consumers while keeping things simple for businesses. Gift cards are regulated at the provincial level, but most provinces follow the same core principles.
For standard retail and restaurant gift cards, here’s what typically applies:
In short, customers should be able to use the full value of their gift card without unexpected restrictions.
There are some important exceptions to be aware of:
Quebec has a few additional requirements that stand out:
It’s also important to distinguish between the two types of gift cards from a regulatory standpoint:
In practice, compliance comes down to being clear, fair, and transparent. The easiest way to manage this is by using a provider that already aligns with Canadian regulations, so these requirements are built into how your program operates.
If you operate more than one location, your gift card program needs to reflect that.
Customers expect:
Your system should provide:
With DataCandy, gift cards work seamlessly across all your locations, with real-time balance updates and centralized management, so both your team and your customers get a smooth, consistent experience every time.
Most businesses assume they have to pick one. In reality, the strongest programs use both.
Physical gift cards are still powerful because they’re tangible. They sit in wallets, get handed over in person, and are especially popular during peak seasons like the holidays. For retail counters and restaurants, they’re an easy upsell at checkout.
Digital gift cards solve a different problem: convenience. Customers can buy and send them instantly—no shipping, no in-store visit. They’re especially valuable for last-minute purchases and online ordering.
Here’s the practical breakdown:
If you’re choosing only one, you’re leaving revenue on the table. A modern gift card program should support both seamlessly.
When choosing a gift card program, you need to consider whether it fits your point of sale (POS) requirements. Your chosen program needs to integrate with your existing systems smoothly.
This prevents disruptions, maintains data accuracy, and streamlines your operations.
Your gift card program needs to seamlessly integrate with your existing technology to truly succeed.
Consider these key elements:
Beyond compatibility, consider features offered by the gift card program itself to optimize its functionality for your business.
Look for:
While your core systems are covered, third-party services can extend the capabilities of your gift card program. Verify if additional services (accounting software, email marketing platforms, etc) can integrate smoothly with both your POS system and your chosen gift card and loyalty program.
Your gift card design should feel like a natural extension of your brand. Whether physical or digital, it’s often the first impression someone has of your business—so it needs to look intentional, polished, and recognizable.
A strong design reinforces your brand identity. Incorporate your colours, logo, and typography to create consistency across every customer touchpoint. For physical cards, even details like material and finish can elevate the perceived value and make the card feel more premium.
With a platform like DataCandy, this process is streamlined. You can customize your gift cards to match your branding, using your colours, logo, and visual style across both physical and digital formats. Instead of working from a generic template, your cards feel like a true extension of your business.
Digital gift cards add another layer of flexibility. You can design for different occasions (such as holidays, promotions, or special campaigns), while keeping everything on-brand. This makes it easy to refresh your look throughout the year without starting from scratch.
When designing your gift cards, focus on:
Most providers, including DataCandy, will handle production and formatting requirements, so you don’t need to worry about technical specifications. You can either upload your own designs or work from pre-built templates and customize them to fit your brand.
The goal is simple: create something that looks good enough to give and memorable enough to bring customers back.
To market your gift card program, promote it in stores, online, and on social media.
At physical locations, use eye-catching displays at checkout areas to prompt impulse purchases. . Online, display gift cards prominently on your website's homepage and product pages to boost sales and customer satisfaction. Additionally, integrate gift card purchase options into your online checkout flow.
Use email to tell subscribers about your gift card program and craft engaging content around it on social media. This could include contests or exclusive discounts for followers who engage.
Another dimension you can add to your marketing is promo cards. These are often offered as a limited-time or exclusive bonus to incentivize larger purchases or reward loyal customers. They can be pre-loaded with balances and expiration dates tailored to your specifications.
For instance, consider offering a complimentary promo card with a minimum purchase amount, or provide special promo cards during holiday seasons.
Whatever the platform, make sure to highlight the benefits of your gift cards, like convenience and flexibility.
You can also consider paid ads to target key customers and boost the overall visibility of your gift card program. Usually, these might take the form of social media ads or search engine marketing (SEM)––both of these options allow for sharp targeting, whether based on demographics and interest groups or searches for related terms like “coffee shop gift cards”.
On their own, gift cards and loyalty programs are both effective. But when they’re connected, they reinforce each other in a way that drives more revenue over time.
A gift card is often the first interaction someone has with your business, especially if it’s given as a gift. That visit is your opportunity to turn a one-time customer into a repeat one. Without a loyalty program, that opportunity is easy to miss.
When the two are combined, the experience becomes more intentional:
This changes the role of a gift card. Instead of being a one-time transaction, it becomes the starting point of an ongoing relationship.
There’s also a measurable impact on spend and retention. Customers who are earning rewards are more likely to:
From an operational standpoint, combining both programs also gives you better visibility. With a loyalty program, you’re understanding who is redeeming gift cards, how often they return, and what drives their behaviour.
In short, gift cards bring customers in, but loyalty programs give them a reason to stay. When they work together, you’re building repeat business and increasing your customer lifetime value.
CTA: See how gift cards and loyalty work better together
Learn how combining gift cards with a loyalty program can turn one-time visits into repeat customers and long-term revenue.
Link: https://datacandy.com/platform/loyalty-program
At a high level, DataCandy is built to do one thing well: make gift cards and loyalty programs easy to run, while actually driving measurable results. But what does that look like in practice?
The best way to understand it is through how real Canadian businesses are using it day to day.
For a small café like Nonnina, the goal wasn’t just to “offer gift cards”—it was to grow their customer base without slowing down operations.
By integrating DataCandy directly into their POS, they were able to:
The impact was tangible:
What’s important here isn’t just the numbers—it’s what they represent. Gift cards became:
For larger, multi-location brands like Edo Japan, the challenge is different.
Their previous setup made gift card transactions slow and operationally painful—especially during busy service periods. Staff had to switch terminals in and out of standalone mode just to process a single card.
After switching to DataCandy:
Just as importantly, it unlocked new opportunities:
For multi-location businesses, this is the real value: a system that scales cleanly across locations without slowing operations down.
For Pandora Masonville, the challenge wasn’t demand—it was infrastructure. Ongoing connectivity issues and unreliable payment terminals were slowing down transactions and creating risk around security and lost revenue.
With DataCandy, they were able to stabilize and streamline operations:
The result was a smoother, more dependable customer experience—especially during busy periods when speed and reliability matter most.
ZIBO! Restaurant-Bar approached gift cards as more than just a feature—they used them to expand how and where they generate revenue.
They started with a simple rollout and scaled over time:
This flexibility led to strong results:
By offering multiple formats and purchase options, ZIBO! was able to reach different customer segments and unlock new revenue streams. The more ways customers can buy and use your gift cards, the more opportunities you create for growth.
For multi-location organizations like Mission Thrift Store, the challenge was coordination across dozens of locations.
Before implementing DataCandy, stores operated independently, making it difficult to:
With DataCandy:
The result was stronger engagement and measurable impact—like campaigns that increased member sales by 10% above average.
Across all these examples, the pattern is consistent:
Whether you’re a single-location café or a national chain, the goal is the same: Make it easy for customers to buy, redeem, and come back again. That’s ultimately what a well-built gift card program should do—and what DataCandy is designed to deliver.
Can I use gift cards across my locations?
Yes, if your gift card system supports multi-location functionality. This allows customers to buy a card at one location and redeem it at any of your stores, with balances updated in real time. It also gives you centralized reporting across all locations, so you’re not managing each store separately.
What POS do you integrate with?
Most modern gift card platforms integrate directly with leading restaurant and retail POS systems. This ensures gift cards can be sold, activated, and redeemed seamlessly at checkout without slowing down operations. It’s important to confirm compatibility with your specific POS early, since integration directly impacts speed, accuracy, and reporting.
Can I do both physical and digital gift cards?
Yes and it’s often best practice. Offering both physical and digital gift cards ensures you capture in-store purchases as well as online and last-minute demand. A unified system allows you to manage both formats in one place, keeping the experience consistent for both staff and customers.
When set up properly, gift cards become more than just a convenient product. They generate immediate cash flow, bring new customers through your doors, and create opportunities for repeat business. And when paired with loyalty, they turn one-time visits into long-term relationships.
The key is choosing a system that fits how your business already operates. Seamless POS integration, support for both physical and digital cards, and the ability to scale across locations all play a role in making your program successful.
If you’ve made it this far, you likely already see the value. The next step is simple: find a solution that removes the complexity and helps you put a program in place that actually drives results.
CTA: See how a gift card program would work for your business.
Book a quick demo to explore how DataCandy fits into your setup and start driving revenue faster.
Link: https://datacandy.com/sign-up-gift-cards