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Enabling a gift card program for your business can be a cost effective method of improving customer loyalty and securing forward sales.Gift card sales will allow your customers to purchase a gift card for a family member, friend or associate as a simple gift option rather than purchasing one of your products immediately.The cards are usually a gift of convenience where the giver does not have to decide on an appropriate choice for a gift Fantastic Four the receiving party has the option to purchase a product or service of their preference.

However a gift card also has many advantages for the business itself.Merchants who sell cards portrays your business as a professional enterprise with customer orientated services thereby increasing your customer base. The advantage of a card is that it 'buys' the loyalty of your customer and secures a future sale before a product leaves your shelf. By receiving your money upfront, you are either assured of the sale or you may gain by unredeemed gift cards. Conservative estimates indicate that up to 15% of the total value of giftamount are not redeemed by shoppers. This is either due to the customer purchasing a product below the value of thecard or not redeeming thecard at all. This is called "Breakage" and is the most profitable part of any gift cardprogram.

Many shoppers who present with a gift card at your business may very likely spend an additional amount above and beyond the value of the face amountot thecard. This is referred to as the point of breakage and often works in favor of both the customer and business.Merchant in the programhave additional benefits if your business is applying the 'eliminate cash back' policy where returned store merchandise will not be refunded with cash. Instead you may opt to give the customer avalue card which essentially serves as a store credit to the value of the returned merchandise. This ensures that the customer will return for a future purchase without your business losing on a sale.

These programs do not have to be a costly service to enable for your business. Many merchant account providers include a100 Free Cardswhen signing up for service.

VisitUSA Merchant Accountfor more information on a gift card program for your business.

Mark Sands is a writer for the many financial topics, including Credit Merchant Account. Credit Card Processing, and Credit Repair. Mark also maintains an credit card processing industry blog, the Merchant Account Blog.