# How to Sell Gift Cards Online and by Text

Canonical page: https://sunlocke.com/articles/gift-cards-small-business

Page type: article

## Summary

Which gift card formats should a salon, spa, restaurant or small store sell this season, and through which channels? The answer decides who can still buy one on Christmas Eve. Plastic cards, emailed codes and texted links reach different buyers at different points in the season, and Shopify and Square each limit how they can be sold. A gift card sold online, by email and by text can still sell after the shipping deadlines pass. Federal rules and state law set what its terms can say. Sources * [National Retail Federation, Affordability Shapes Winter Holiday Shopping, According to NRF Holiday Survey (October 20, 2026)](https://nrf.com/media-center/press-releases/affordability-shapes-winter-holiday-shopping-according-to-nrf-holiday-survey) * [National Retail Federation, Thanksgiving Weekend Expected to Draw Largest Number of Shoppers on Record (November 20, 2025)](https://nrf.com/media-center/press-releases/thanksgiving-weekend-expected-to-draw-largest-number-of-shoppers-on-r

## Article details
Plastic cards, emailed codes and texted links reach different buyers at different points in the season, and Shopify and Square each limit how they can be sold.

## Main point
A gift card sold online, by email and by text can still sell after the shipping deadlines pass. Federal rules and state law set what its terms can say.

Author: Chris Martinez

Section: Business

Post type: Decision Guide

Story format: standard

## Article content
Gift cards top the wish lists in the National Retail Federation's annual holiday survey. In the October 2026 edition, run with Prosper Insights & Analytics, 47 percent of the 8,094 adults surveyed said they would like to receive one, ahead of clothing at 44 percent. A separate NRF and Prosper survey in November 2025 projected $29.1 billion in holiday gift card spending for that season, with restaurant cards the most popular type.

For a salon, a spa, a restaurant, a repair shop or a small store, that demand arrives in a narrow window and through a few places: the counter, the website, an email, a text. A card sold only at the counter misses the other three.

## The four formats

A **physical card** sells at the counter, to people who already come in. Shopify sells branded physical cards that work with its point of sale app through the Shopify Hardware Store in supported countries, and Square lets sellers order physical cards from the Gift cards section of the Square Dashboard. A physical card makes a good stocking stuffer and a poor last minute gift for anyone who lives out of town.

A **digital card sent by email** arrives in minutes, so it is the format that still works on Christmas Eve. Shopify, for example, sends the card as an email with a unique code when the order is fulfilled. If the theme supports recipient fields, the buyer can send it straight to the recipient. Shopify's help center says the buyer's receipt confirms who the card went to, or when it is scheduled to send.

A **digital card sent by text** suits buyers who think in phone numbers rather than email addresses. Support varies by platform. Square's United States help center says its point of sale app cannot yet text an eGift card automatically, and tells sellers to share their online gift card order page with the buyer instead.

A **paper certificate**, filled in by hand, is the oldest format. Federal rules treat it differently from a card or a code.

One more choice cuts across all four: a card for an amount or a card for a service. "A $75 gift card" and "one 60 minute massage" sell the same idea, but the Consumer Financial Protection Bureau's official commentary on the federal rule treats them differently.

## Where to sell gift cards, online and at the counter

**The website.** A gift card needs its own page, reachable from the main menu, that works on a phone. Adobe reported that on Christmas Day 2025, 66.5 percent of online sales came through mobile devices, the highest share of any day that season.

On Shopify, gift cards are a product type with preset amounts, up to $10,000 each. Shopify says customers cannot type a custom amount on the storefront, so set preset amounts that cover the range customers give. Square offers a free online order page for eGift cards, and a Square website can add it to its navigation.

**The Google Business Profile.** Square's help center suggests linking the gift card order page from the business's Google Business Profile, the free listing that shows the business in Google Search and Maps.

**Gift card directories.** Square says a business that sets up eGift cards for the first time is automatically opted in to partner directories, including TruCentive, Giftogram and Square's own Give and Get Local Directory. The business can opt out in its settings.

**The counter.** Check whether cards sold in person and online share one balance. Shopify says a card bought through its point of sale app can be redeemed on the online store, and the reverse. Staff should know that before a customer asks.

## When to promote them

[The holiday email and text plan](/articles/holiday-email-and-sms-plan) sets the calendar for the season's messages, and gift cards take a different place in it as the weeks pass.

**From Black Friday into early December**, gift cards compete with everything else on sale. This is the period for a bonus offer, such as a smaller card added to a larger purchase. The federal rule described below leaves out a loyalty, award or promotional gift card, so a free bonus card is treated differently from one a customer pays for. The rule still requires such a card to say on its front that it is promotional and to show when its money expires. Shopify and Square both let a business discount the card itself instead. Shopify's example is a $100 card sold for $80. Square lets a seller set a percentage or dollar discount, with an optional minimum card amount for the dollar version.

**After the shipping deadlines**, the gift card becomes the product. A store that can no longer get a package to the recipient in time can still sell a card by email.

**On Christmas Eve and Christmas Day**, the buyer is in a hurry. A single text with a direct link to the gift card page, sent to customers who agreed to receive marketing texts, fits that moment better than a long email. What counts as that agreement is the subject of [growing a text list with proven consent](/articles/grow-sms-list-before-black-friday), and [these holiday texts short enough to bill as one message](/articles/holiday-text-message-examples) show how little room the link leaves.

**In January and after**, the cards come back. The recipient is often someone who has never visited. Invite them to join the email list on the redemption page or the receipt, and do not add them automatically.

## The federal rules, as the FTC and CFPB describe them

The federal limits come from the Credit CARD Act of 2009 and are written into Regulation E, which the Consumer Financial Protection Bureau publishes at 12 CFR 1005.20. The Federal Trade Commission summarized them for holiday shoppers in November 2010, three months after they took effect. What follows describes those sources. It is not legal advice, and how they apply to a particular card is a question for a lawyer.

The rules apply to store gift cards and gift certificates sold to consumers. As the FTC summarized them:

* Money on a gift card cannot expire for at least five years from the date the card was bought or last loaded. If the card itself shows an earlier date, the money can be moved to a replacement card at no cost.

* Inactivity fees can start only after a year with no use, and then no more than once a month.

* The card must disclose its expiration date, and the card or its packaging must disclose any fees.

The regulation is stricter than that summary in one place that matters to a small business. Any inactivity fee (the regulation also calls it a dormancy fee) or service fee, how often it applies and the fact that it is charged for inactivity must appear on the card itself; packaging or a sticker does not count. The CFPB's commentary adds that a card with no fees and no expiration needs no toll free number or website for fee information. Shopify's default matches that simple case: its help center says cards do not expire unless the store sets an expiration, and if it does, the default is five years.

The CFPB's commentary also speaks to the formats above:

* **Codes count.** The rule covers a code as well as a plastic card. The commentary's example is a code a merchant issues that can be given as a gift and redeemed online.

* **Paper only is excluded.** A certificate issued only on paper is outside the rule. A code sent by email that the buyer prints at home is not "paper only," because it was issued electronically.

* **Service cards depend on the amount.** A card for "a spa treatment," with no dollar amount, is generally outside the rule. A card for "a spa treatment up to $50," or one that states "a $50 value," is inside it.

## State law can go further

The federal law says a state law that gives consumers more protection is not inconsistent with it, so states can add their own rules. California is one example. Its Civil Code section 1749.5 makes it unlawful to sell a gift certificate with an expiration date or a service fee, with narrow exceptions. It also makes a certificate worth less than $15 redeemable in cash. The current version of the section, with that $15 figure, became operative on April 1, 2026, under a bill enacted in 2025 (SB 22).

Other states set different terms. New York's Department of State says gift cards bought there on or after December 10, 2022, stay valid for at least nine years from the date of purchase, and that the law prohibits fees on them, inactivity fees included.

Unspent balances raise a separate question of unclaimed property law. In California, Code of Civil Procedure section 1520 sends property a business holds for someone else to the state once it has gone unclaimed for more than three years. Section 1520.5 says that rule does not apply to gift certificates covered by the gift certificate law, but does apply to one that has an expiration date and was sold for money or anything else of value. Other states treat unspent balances differently, which is one more question for the business's lawyer.

Shopify's own help center tells merchants to ask a local tax or legal expert which rules apply to them. Decide the format and the terms first. Have them checked for each state where the business sells. Then print the cards and build the page.

## What to count in January

Three numbers measure the season's cards. The first is how many cards sold and for how much. The second is how many were redeemed by the end of February. The third is how many redemptions came from people who had never bought before. If the point of sale or store reports cannot show first time buyers among redemptions, set up that report before the first card is sold.

### Frequently asked questions

#### How do gift cards work on Shopify?
On Shopify, a gift card is a digital product sold in preset amounts of up to $10,000 each, and customers cannot type their own amount on the storefront. Shopify emails the customer or recipient a unique code when the order is fulfilled. Its help center says cards do not expire unless the store sets a date, and that cards sold through its point of sale app and online are interchangeable.

#### How do Square gift cards work?
Square lets a business sell eGift cards through what its help center calls a free online order site, and order plastic cards from the Gift cards page of its Dashboard. Square suggests linking that site from the Google Business Profile, the free listing shown in Google Search and Maps. A business that first sets up eGift cards is automatically opted in to public gift card directories, and it can opt out in its settings.

#### How long must a gift card stay valid under federal law?
Federal rules say the money on a gift card a customer pays for cannot expire for at least five years from the date it was bought or last loaded, according to the Federal Trade Commission's 2010 summary. A card can show an earlier date. In that case, the Consumer Financial Protection Bureau's commentary says the issuer may replace the card or pay out the balance, with no fee. State laws can go further, and a lawyer can say what applies.

#### What is the difference between a gift card and a gift certificate?
Under the federal rule, the difference turns on how it was issued, because Regulation E uses "gift certificate" for cards and codes as well as paper. Its exclusion covers one issued in paper form only, and the Consumer Financial Protection Bureau's commentary says a code emailed to a buyer who prints it at home does not qualify. State laws can draw their own lines, and California's definition includes gift cards and electronic gift cards.

#### What is California's gift card law?
California Civil Code section 1749.5 makes it unlawful to sell a gift certificate with an expiration date or a service fee, with narrow exceptions, and section 1749.45 defines that term to include gift cards and electronic gift cards, apart from certain cards usable with multiple sellers. A certificate worth less than $15 is redeemable in cash, in the version operative April 1, 2026, under SB 22. A lawyer can say how it applies to a particular card.

#### How do I sell gift cards online?
Sell them from a dedicated gift card page on the store's own site, reachable from the main menu and easy to use on a phone. Cards sent by email arrive in minutes, so they keep selling after shipping deadlines pass. A single text linking straight to the page, sent to customers who agreed to marketing texts, suits Christmas Eve buyers. A business that also sells at the counter should check whether both share one balance.

Source: National Retail Federation, Affordability Shapes Winter Holiday Shopping, According to NRF Holiday Survey (October 20, 2026)

Survey of 8,094 adults by NRF and Prosper Insights & Analytics, October 1 to 7, 2026: 47 percent want to receive gift cards, ahead of clothing at 44 percent. Checked November 2, 2026.

Reference: https://nrf.com/media-center/press-releases/affordability-shapes-winter-holiday-shopping-according-to-nrf-holiday-survey

Source: National Retail Federation, Thanksgiving Weekend Expected to Draw Largest Number of Shoppers on Record (November 20, 2025)

A separate NRF and Prosper survey from the October holiday survey: projected 2025 holiday gift card spending of $29.1 billion, with restaurant cards the most popular type at 27 percent. Survey of 8,000 adults, October 31 to November 6, 2025. Checked November 2, 2026.

Reference: https://nrf.com/media-center/press-releases/thanksgiving-weekend-expected-to-draw-largest-number-of-shoppers-on-record

Source: Adobe, Holiday Shopping Season Drove a Record $257.8 Billion Online (press release, January 7, 2026)

Adobe Analytics data: mobile devices drove 66.5 percent of online sales on Christmas Day 2025, the highest mobile share of the season. Checked November 2, 2026.

Reference: https://news.adobe.com/news/2026/01/adobe-holiday-shopping-season

Source: Consumer Financial Protection Bureau, 12 CFR 1005.20, Requirements for gift cards and gift certificates (Regulation E), with official interpretations

The federal rule: five year minimum for funds, fee limits and fee disclosures on the card itself, coverage of codes, the paper only exclusion, the exclusion of loyalty, award and promotional cards with the disclosures those cards still carry, and the commentary on cards for a specific service. Checked November 3, 2026.

Reference: https://www.consumerfinance.gov/rules-policy/regulations/1005/20/

Source: Federal Trade Commission, FTC Has Gift Card Tips for Holiday Buying (press release, November 2010)

The FTC's plain summary of the federal gift card rules that took effect in August 2010: five years before funds expire, inactivity fees only after a year and once a month, and required disclosures. Checked November 2, 2026.

Reference: https://www.ftc.gov/news-events/news/press-releases/2010/11/ftc-has-gift-card-tips-holiday-buying

Source: California Legislative Information, Civil Code section 1749.5

California's gift certificate law: no expiration dates or service fees with narrow exceptions, and cash redemption below $15, in the version operative April 1, 2026 (SB 22, 2025). Checked November 2, 2026.

Reference: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1749.5

Source: Shopify Help Center, Gift cards considerations and overview; Adding or updating gift card products; Gift card settings; Add a discount to a gift card; Customizing gift card pages and notifications

Emailed codes, preset amounts up to $10,000, no custom amounts on the storefront, cards shared between point of sale and online, no expiration by default, discounted cards, recipient and scheduled sending, and the advice to consult a local legal expert. Checked November 2, 2026. Physical gift cards ordered from the Shopify Hardware Store in supported countries (Gift cards on Shopify POS overview, checked November 3, 2026).

Reference: https://help.shopify.com/en/manual/products/gift-card-products

Source: Square Support Center, Sell and send gift cards; Set up and order gift cards; Promote eGift cards

Square's free online eGift card order page, the point of sale limit on texting cards, discounts on eGift cards, linking the order page from a Google Business Profile, and automatic opt in to partner gift card directories. Checked November 2, 2026. Ordering physical gift cards from the Square Dashboard (Set up and order gift cards, checked November 3, 2026).

Reference: https://squareup.com/help/us/en/article/6356-create-egift-card-promotions

Source: Legal Information Institute, 15 U.S. Code 1693q, Relation to State laws

The federal statute's text that a state law giving consumers greater protection is not inconsistent with it, including for gift card fees and expiration dates. Checked November 3, 2026.

Reference: https://www.law.cornell.edu/uscode/text/15/1693q

Source: New York Department of State, Consumer Alert: Division of Consumer Protection alerts consumers to new laws related to gift cards (December 9, 2022)

Gift cards bought in New York on or after December 10, 2022, remain valid for at least nine years from purchase, and the law prohibits fees on them, inactivity fees included (one exception, a one time activation fee on cards usable at many unaffiliated merchants, does not apply to a single business's own card). Checked November 3, 2026.

Reference: https://dos.ny.gov/news/consumer-alert-nys-division-consumer-protection-alerts-consumers-new-laws-related-gift-cards

Source: California Legislative Information, Code of Civil Procedure sections 1520 and 1520.5

Section 1520: property a business holds for someone else that has gone unclaimed for more than three years escheats to the state (read November 3, 2026). Section 1520.5: that rule does not apply to gift certificates covered by the gift certificate law, but does apply to one with an expiration date that was given in exchange for money or any other thing of value. Checked November 3, 2026.

Reference: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CCP&sectionNum=1520.5

## Structured sections
Sources
* [National Retail Federation, Affordability Shapes Winter Holiday Shopping, According to NRF Holiday Survey (October 20, 2026)](https://nrf.com/media-center/press-releases/affordability-shapes-winter-holiday-shopping-according-to-nrf-holiday-survey)

* [National Retail Federation, Thanksgiving Weekend Expected to Draw Largest Number of Shoppers on Record (November 20, 2025)](https://nrf.com/media-center/press-releases/thanksgiving-weekend-expected-to-draw-largest-number-of-shoppers-on-record)

* [Adobe, Holiday Shopping Season Drove a Record $257.8 Billion Online (press release, January 7, 2026)](https://news.adobe.com/news/2026/01/adobe-holiday-shopping-season)

* [Consumer Financial Protection Bureau, 12 CFR 1005.20, Requirements for gift cards and gift certificates (Regulation E), with official interpretations](https://www.consumerfinance.gov/rules-policy/regulations/1005/20/)

* [Federal Trade Commission, FTC Has Gift Card Tips for Holiday Buying (press release, November 2010)](https://www.ftc.gov/news-events/news/press-releases/2010/11/ftc-has-gift-card-tips-holiday-buying)

* [California Legislative Information, Civil Code section 1749.5](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1749.5)

* [Shopify Help Center, Gift cards considerations and overview; Adding or updating gift card products; Gift card settings; Add a discount to a gift card; Customizing gift card pages and notifications](https://help.shopify.com/en/manual/products/gift-card-products)

* [Square Support Center, Sell and send gift cards; Set up and order gift cards; Promote eGift cards](https://squareup.com/help/us/en/article/6356-create-egift-card-promotions)

* [Legal Information Institute, 15 U.S. Code 1693q, Relation to State laws](https://www.law.cornell.edu/uscode/text/15/1693q)

* [New York Department of State, Consumer Alert: Division of Consumer Protection alerts consumers to new laws related to gift cards (December 9, 2022)](https://dos.ny.gov/news/consumer-alert-nys-division-consumer-protection-alerts-consumers-new-laws-related-gift-cards)

* [California Legislative Information, Code of Civil Procedure sections 1520 and 1520.5](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CCP&sectionNum=1520.5)