What Is Gift Card Software? A Plain-English Guide for Small Businesses
Gift Card Software Explained

What Is Gift Card Software?
A Plain-English Guide for Small Businesses

Gift card software is the system that allows merchants to sell gift cards, deliver eGift cards, track balances, and manage redemptions. This guide explains what it is, how it works, and why it’s one of the most powerful customer retention tools available to small businesses.

Updated: Jan 20, 2026 NetGCS Learning Center

What Is Gift Card Software?

Gift card software is a stored-value system that allows a business to issue gift cards, sell them to customers, and track balances digitally. Instead of a gift card being “just plastic,” it becomes an account in a system.

The software stores the balance, records transactions, validates cards at redemption, and gives merchants a dashboard to manage everything securely.

Why Businesses Use Gift Card Software

  • Sell gift cards in-store and online
  • Track balances and transaction history
  • Increase repeat visits
  • Generate prepaid revenue
  • Introduce new customers

How Gift Card Software Works

  1. A gift card or eGift card is created in the system.
  2. A customer purchases and loads value.
  3. The balance is stored securely.
  4. The card is redeemed in-store or online.
  5. The system tracks every transaction.

Physical Gift Cards vs eGift Cards

Modern gift card software supports both physical and digital gift cards. Both types connect to the same stored-value platform, allowing customers to buy online and redeem in-store.

Why Gift Card Software Is a Retention Tool

Every gift card guarantees a future visit. Most introduce a new customer. Many lead to additional spending. Gift card software turns gifting into a long-term retention system.

What to Look for in Gift Card Software

  • Physical + eGift card support
  • Stored balances and history
  • Multi-location capability
  • Fraud protection
  • Merchant support

How NetGCS Fits In

NetGCS is gift card software built specifically for independent businesses. It supports physical gift cards, eGift cards, stored-value tracking, and optional loyalty programs.