Gift Card Top-Up
A Gift Card Top-Up (also known as a reload or recharge) is the process of adding additional funds to an existing gift card, increasing its available balance. This turns a gift card from a single-use instrument into a reusable, wallet-like payment method.
How top-ups work
When a customer tops up a gift card, they select the card (by code or from their account), choose an amount to add, and complete a payment. The system verifies the card is valid and active, processes the payment, and adds the new amount to the existing balance. A transaction record is created for the top-up, and the updated balance is reflected immediately.
Benefits for stores
- Customer retention: Reloadable cards encourage repeat visits and create a habit of shopping at your store.
- Prepaid revenue: Top-ups bring in cash before the customer makes a purchase, improving cash flow.
- Reduced breakage: Customers who can reload are more likely to use small remaining balances rather than abandoning them.
- Upselling: Offer incentives for top-ups (e.g., “add $50 and get a $5 bonus”) to increase average prepaid amounts.
Implementation considerations
- Set minimum and maximum top-up amounts to prevent abuse and comply with anti-money-laundering regulations.
- Define a maximum card balance cap to limit liability and reduce fraud risk.
- Log all top-up transactions with timestamps, amounts, and payment methods for audit trails.
- If the card has an expiration date, decide whether a top-up extends the expiration.