Gift Card statistics

Today gift cards continue to grow in popularity due to the ease of use, streamlined reporting and added security over paper based gift certificate programs. The programs offer many important features that help merchants manage sales, tracking and reconciliation of cards.

The technology offers the business owner complete control over how the program is managed and whom within the location has privileges to administer transactions at the location. The gift card offers the recipient the flexibility to use the balance to get what they want.

  • Two-thirds of all consumers have purchased at least one gift card.
  • 55% of gift card recipients make more than one trip to the business to deplete the value of their card.
  • The average recipient spends 20% more than their card’s initial value.
  • 69% of companies using them stated that gift cards are more effective than cash in motivating and rewarding employees.
  • In the 2007 holiday season, the average amount placed on gift cards was $203.
  • 10 – 15% of gift card recipients never redeem the full value of a card, meaning the business keeps it as profit.
  • 81% of consumers purchase gift cards for birthdays. 67% percent purchase gift cards for holidays.
  • Studies found that 40% of shoppers using a retailer’s card bought items at full price. Only 16% of shoppers using other payment methods bought at full price.
  • When retailers switch from paper gift certi fi cates to gift cards, they sell anywhere from 50-100% more.

(Sources: American Greetings,, Green Sheet Quarterly, National Retail Federation, J.C. Williams Group, Incentive magazine)