Complimentary Gift Cards

Description: For merchants offering gift cards, providing exceptional customer service often involves giving out complimentary gift cards for various reasons, such as promotions, loyalty rewards, or resolving customer issues. While these gestures can enhance customer satisfaction and loyalty, they can also impact your financial reporting accuracy if not managed correctly.

---

When merchants offer complimentary gift cards by applying discounts to transactions, it can distort financial reports. Sales figures appear lower than they are, making it difficult to assess the actual performance of your gift card program. To overcome these challenges and ensure accurate reporting, consider implementing a dummy tender-type system for handling complimentary gift cards.

How to Give Away a Gift Card

1. Create a Dummy Tender Type 
   • On your SkyTab POS system or on Lighthouse, establish a separate "dummy" tender type specifically for complimentary gift cards. This tender type should not affect transaction totals or revenue calculations. For more information, visit the Set up Payments/Tender Types on SkyTab POS article
2. Process Complimentary Transactions 
   • Complete the transaction using the dummy tender type when giving out a complimentary gift card. This keeps the transaction separate from regular sales, preventing it from distorting your financial data.
3. Accurate Reporting 
   • By using a dummy tender type, you maintain accurate sales records while preserving the transparency of your gift card program. You can easily track the issuance and redemption of complimentary gift cards in your financial reports.

Accurate financial reporting is essential for making informed business decisions when managing complimentary gift cards. Implementing a dummy tender-type system in your POS software allows you to maintain transparency, track usage, and provide excellent customer service without compromising your financial data. By following this tip, merchants can balance customer satisfaction and financial accuracy, ensuring a win-win scenario for all parties involved.