Gift Card Basics in Shopify — FAQ¶
What Shopify plan do I need?¶
Gift cards are available on Shopify, Advanced Shopify, and Shopify Plus plans. The Basic Shopify plan does not include gift card functionality.
If you're on Basic, you'll need to upgrade your plan before using GiftCard Hero.
Can customers use a gift card with a discount code?¶
Yes. Shopify allows a gift card and a discount code to be used in the same order. The discount applies first (reducing the item prices), and then the gift card is applied as payment to the reduced total.
Can customers use more than one gift card per order?¶
Yes. Shopify allows up to 10 gift cards to be applied to a single order.
Can a customer use a gift card to buy another gift card?¶
No. Shopify prevents gift cards from being used to purchase other gift cards. This is a Shopify platform restriction, not a GiftCard Hero limitation.
Do gift cards expire?¶
That depends on your settings. Shopify allows you to set an expiry date on gift cards. GiftCard Hero lets you configure expiry per gift card type.
Important: Many jurisdictions regulate gift card expiry: - USA: Most states require a minimum 5-year expiry. California, Florida, and others ban expiry entirely. - Canada: Gift cards cannot expire under federal law (with narrow exceptions). - UK: No federal ban, but consumer protection principles apply. - Australia: Minimum 3-year expiry under Australian Consumer Law. - EU: No harmonized regulation; varies by member state.
Always consult a lawyer in your jurisdiction before setting expiry dates.
Are gift cards taxed?¶
In most jurisdictions, gift card purchases are not subject to sales tax — you're selling a future payment method, not a product. Sales tax is collected when the gift card is redeemed to buy taxable goods.
Shopify handles this automatically. The gift card sale appears as a liability in your Shopify financial reports, which is offset when the card is used.
Tax rules vary by country and state — consult your accountant.
What happens to the money from unused gift cards?¶
Unredeemed gift card balances are a liability on your books — you owe the holder that value. In some US states, unclaimed gift card balances must be escheated (turned over to the state) after a certain period (usually 3–5 years).
This is called gift card breakage. Consult your accountant about how to handle breakage in your jurisdiction.
Can I refund to a gift card instead of the original payment method?¶
In most cases, yes — this is a policy decision, not a technical one. You issue a gift card for the refund amount instead of processing the refund to the original payment method. Be aware that:
- Some consumer protection laws require cash refunds for defective products
- Store credit refunds are generally fine for returns where the product is not defective
- You should disclose your store credit refund policy clearly
See Refunds as Gift Cards for the operational guide.
Why can't I see gift cards in my Shopify Admin?¶
Gift cards appear in Shopify Admin → Gift Cards only on eligible plans. If you're on Basic, this section won't exist.
If you're on an eligible plan and still can't see it, contact Shopify support — it may be a plan activation issue.
Do gift cards work in Shopify POS natively?¶
Yes, Shopify POS natively supports gift card redemption. A customer can present their code and staff can apply it to the POS transaction. However, issuing new cards, checking balances, and processing refunds to gift cards at POS require GiftCard Hero's POS extension.
What is the format of a Shopify gift card code?¶
Shopify gift card codes are typically 16 alphanumeric characters (letters and numbers), displayed in groups of 4: ABCD-EFGH-IJKL-MNOP. Codes are case-insensitive.
When a customer types their code at checkout, they can include or omit the dashes — both formats work.
Can I import gift card codes I generated elsewhere?¶
Yes, via Physical Gift Cards — you can import codes from any source (a manufacturer, a previous system, or codes you generated yourself). Each imported code becomes a live Shopify gift card with the balance you set.
What happens to gift cards if I switch from GiftCard Hero to another app?¶
All gift cards created by GiftCard Hero are native Shopify gift cards. They remain valid regardless of which app you use or whether you uninstall GiftCard Hero. The codes will work at your store's checkout forever (unless you disable them in Shopify Admin or they expire).