Simplified: Stop Gift Cards From Stealing Your Holiday Money

I'll never forget the December morning I opened my email to find three chargebacks—all from holiday gift cards I'd sold just weeks earlier. The cards had been activated, used, and then disputed. I was out the service and the money. That sick feeling in my stomach? It wasn't just about the lost revenue. It was the realization that I'd been so focused on boosting holiday sales that I'd completely overlooked the ways gift cards could quietly drain my business.

If you're running a traditional spa or salon and still handling gift cards the old-fashioned way—handwritten certificates, a logbook at the front desk, maybe a basic spreadsheet—you're not alone. But here's what I learned the hard way: those innocent-looking holiday gift cards can become a financial sinkhole faster than you can say "Season's Greetings." Between fraud, unredeemed balances sitting in accounting limbo, and missed opportunities to convert gift recipients into loyal clients, there's real money slipping through your fingers every holiday season.

In this guide, I'm going to walk you through exactly how gift cards can steal your holiday profits, the specific risks you face with manual tracking, and—most importantly—practical steps you can take right now to protect your business without overhauling your entire system overnight.

What Exactly Does "Gift Cards Stealing Your Holiday Money" Mean?

When I say gift cards are "stealing" your money, I'm talking about three specific ways they drain revenue without you realizing it:

First, there's outright fraud—tampered cards, stolen numbers, and scammers who drain balances before your legitimate customers ever get to use them. Second, there's the accounting nightmare of unredeemed cards creating phantom liabilities on your books and tying up cash you could be using to grow. Third, there's the missed opportunity cost—every gift card recipient who walks through your door is a potential new regular client, but if you're not tracking them properly, they disappear into thin air after one visit.

Let me break down each of these problems and show you how to fix them.

How Does Gift Card Fraud Actually Happen in a Small Spa?

I used to think fraud was something that only happened to big-box retailers. Wrong. Small businesses are actually more vulnerable because we often lack the security protocols larger chains have in place.

Here's how it typically goes down:

Physical Tampering

A fraudster walks into your spa during a busy Saturday. While your receptionist is handling a client, they casually inspect the gift cards on your counter display. They peel back a corner of the packaging on several cards, photograph or write down the numbers and PINs, then carefully reseal everything. The cards look untouched.

Later, they monitor those card numbers online (if you offer balance checks) or simply wait. The moment a legitimate customer purchases and activates one of those compromised cards, the scammer drains the balance—sometimes within hours. Your customer shows up for their appointment only to discover their $200 gift card is worthless.

According to fraud prevention experts at SEON, understanding whether you're dealing with a legitimate customer or a fraudster is the key to prevention. The problem? With manual systems, you often don't know fraud has occurred until it's too late.

The Barcode Swap

This one's clever and infuriating. Scammers purchase a gift card legitimately, then print a duplicate barcode at home. They return to your spa, find unactivated cards on display, and place their printed barcode sticker over the original. When an unsuspecting customer purchases what they think is a new card, they're actually loading money onto the scammer's card.

Social Engineering

During the holidays, scammers get creative. They might call your spa pretending to be a corporate client wanting to purchase bulk gift cards for employees. They pressure your staff to process the order quickly, provide card numbers over the phone before payment clears, or use stolen credit cards. By the time you realize something's wrong, the cards are spent and you're facing chargebacks.

The Federal Trade Commission reports that gift card scams are among the fastest-growing fraud categories, with losses in the hundreds of millions annually. Small businesses like yours are increasingly targeted because scammers know you're less likely to have sophisticated fraud detection.

What You Can Do Right Now

I'm not going to tell you to invest in expensive fraud detection software—I know that's not realistic for everyone. Here are the low-tech, high-impact steps I implemented after my own fraud wake-up call:

Keep cards behind the counter. Seriously, this one change eliminated 90% of my tampering risk. Only display empty sample cards or basic information cards in public areas. Keep actual, sellable gift cards in a locked drawer at the register.

Inspect every card before sale. Train your staff to look for signs of tampering: torn packaging, stickers over barcodes or PINs, resealed edges, or anything that looks "off." Choose cards from the back of your inventory, not the front.

Require activation at purchase. Never pre-activate gift cards. Each card should only become active at the exact moment payment is processed and verified.

Accept cash only for gift cards. I know this sounds extreme, but hear me out. During my first holiday season after implementing this policy, I had zero fraud incidents. If customers insist on using credit cards, use your payment processor's fraud protection tools and never provide card numbers until payment fully clears.

Create a simple logbook. You don't need fancy software. A basic ledger with columns for date, card number (last four digits only), amount, purchaser name, and recipient name creates an audit trail. Cross-reference this weekly against your bank deposits.

How Do Unredeemed Holiday Gift Cards Create an Accounting Nightmare?

Let me paint you a picture from my own experience. January 2019: I'm sitting at my kitchen table at 11 PM, trying to close out my books for the previous year. I've got a stack of gift card stubs, a spreadsheet that doesn't balance, and a growing sense of panic.

I'd sold approximately $15,000 in gift cards during the holidays. By January, maybe $8,000 had been redeemed. Where was the other $7,000? Was it liability I still owed? Could I count it as revenue? Were some cards lost? Had I failed to log redemptions properly? I had no idea.

This is the hidden cost nobody warns you about.

The Liability Problem

In most US states, when you sell a gift card, you can't immediately count that money as revenue. It's a liability on your books—money you owe in services until the card is redeemed. This creates several problems:

Cash flow confusion: You've got $7,000 sitting in your bank account that you can't really spend because you might owe services against it. But you also don't know if those cards will ever be redeemed. Research from Sekure Payment Experts shows that in 2018, $335 billion was loaded onto gift cards in the US, with a significant portion never fully redeemed.

Tax complications: Depending on your state and how you've structured your business, you might owe taxes on unredeemed gift cards under "escheatment" laws, or you might be able to recognize them as revenue after a certain period. If you can't track which cards are unredeemed and for how long, you're flying blind at tax time.

Messy books: Investors, lenders, and even buyers (if you ever want to sell your business) look at your balance sheet. A large, unexplained liability from gift cards makes your business look less healthy than it actually is.

The Manual Tracking Trap

With a paper-based or basic spreadsheet system, tracking redemptions is a nightmare. Here's what used to happen at my spa:

A client books an appointment and mentions they have a gift card. The receptionist finds the card, applies it to the bill, and... maybe writes it down in the logbook. Maybe doesn't. Maybe writes the wrong number. Maybe the card gets filed incorrectly. By month-end, reconciling sales against gift card redemptions required hours of detective work, and I still never felt confident in the numbers.

What You Can Do Right Now

Set an expiration policy. Many states allow reasonable expiration dates on gift cards (typically 2-5 years). Check your state's gift card laws and implement a clear policy. Print it on every card. This lets you eventually recognize unredeemed balances as revenue.

Monthly reconciliation ritual. Block two hours at the end of each month. Pull your sales records, your gift card log, and your bank statements. Reconcile every card sold against every card redeemed. Yes, it's tedious. Yes, it's worth it. I do this the first Monday of every month, no exceptions.

Separate gift card bank account. This is the game-changer nobody tells you about. Open a separate savings account and deposit every dollar from gift card sales into it. When cards are redeemed, transfer that amount back to your operating account. At any moment, your gift card account balance shows your exact liability. Simple, effective, and it saved my sanity.

Use a simple spreadsheet template. You don't need to go digital with your whole operation, but a basic Excel or Google Sheets template makes tracking infinitely easier. Create columns for: Card Number, Date Sold, Amount, Purchaser, Recipient, Date Redeemed, Amount Redeemed, Balance Remaining. Update it daily. Download a free template from SCORE if you need a starting point.

What Is the Average Fraud Rate Associated with Paper Spa Gift Certificates?

Here's where I have to level with you: comprehensive, industry-specific data on fraud rates for small spas is surprisingly scarce. Most published statistics aggregate retail fraud generally, not spa-specific incidents.

What I can tell you from my own network of spa owners and industry conversations is that fraud incidents spike dramatically during the holidays. In informal surveys I've conducted with fellow spa owners in my local business association, roughly 30-40% reported experiencing some form of gift card fraud during holiday seasons—ranging from minor balance discrepancies to significant losses from tampered cards or chargeback fraud.

The FTC's consumer protection data confirms that gift card scams are among the top fraud complaint categories, but they don't break it down by business size or industry.

What matters more than the exact percentage is this: paper certificates and manually tracked cards are significantly more vulnerable than digital systems. Why? Because they lack audit trails, real-time verification, and the ability to immediately deactivate compromised cards.

The Real Cost Isn't Just the Fraud

When I calculated the true cost of my gift card fraud incident, the stolen balances were only part of it. I also lost:

Staff time investigating and documenting the fraud (roughly 8 hours)
The cost of making affected customers whole (I replaced their stolen balances to maintain relationships)
Chargeback fees from my payment processor ($25 per incident)
The opportunity cost of services I could have sold instead of comping fraud victims
Stress and lost sleep (harder to quantify, but very real)

All told, three fraudulent $100 gift cards actually cost my business close to $1,200. That's the multiplier effect nobody warns you about.

Protection Strategies That Actually Work

Based on my experience and conversations with other spa owners who've successfully minimized fraud:

Train your team on red flags. Hold a 15-minute team meeting before the holiday rush. Show them examples of tampered packaging. Role-play suspicious scenarios (someone wanting to buy ten $200 cards with a credit card they keep swiping incorrectly). Empower them to politely decline suspicious transactions.

Limit individual transaction sizes. I implemented a policy: no single gift card purchase over $500 without manager approval. This immediately stopped the bulk-purchase scams.

Verify large purchases. If someone wants to buy multiple cards or high-value cards, take an extra minute to verify their payment method. For credit cards, check that the name matches their ID. For business purchases, verify the company exists and call them back at their public number (not one the customer provides).

Document everything. When you do encounter suspected fraud, document every detail: date, time, customer description, card numbers involved, payment method, staff member present. This documentation is essential for police reports, payment processor disputes, and insurance claims.

How Do I Use Gift Card Data to Identify High-Value New Clients?

This is where traditional spa owners miss the biggest opportunity. Every gift card recipient who walks through your door is a warm lead—someone who's already been recommended by an existing client. But if you're not capturing and using that data, they're just another one-time visitor.

Let me share what I started doing differently:

The Intake Conversation

When a client books an appointment and mentions they have a gift card, my receptionist doesn't just take their name and appointment time. She asks:

"Who gave you this wonderful gift?"
"Is this your first time visiting us?"
"What service are you most excited to try?"
"How did [the gift giver] describe their experience here?"

This 30-second conversation gives us incredible intelligence. We now know:

Which of our existing clients are actively referring others (these are VIPs worth rewarding)
Whether this is a brand-new client or someone who's visited before
What their expectations and interests are
What story they've heard about our spa (helping us understand our reputation)

The Follow-Up System

Here's the system that transformed my gift card recipients into regular clients:

During the visit: Provide exceptional service (obviously), but also have the service provider mention one other service that complements what they're receiving. "Your skin looks like it would really benefit from our hydrating facial—have you ever tried one?"

Immediately after: Send a handwritten thank-you note within 48 hours. Yes, handwritten. It takes five minutes and costs 60 cents. "It was wonderful meeting you! We hope [gift giver's name]'s recommendation lived up to expectations. We'd love to see you again soon."

Two weeks later: Email or text (depending on their preference) with a special "new client" offer: 20% off their next service if they book within 30 days. Make it easy to say yes.

Three months later: If they haven't returned, one more touchpoint: "We've been thinking about you! We have a new [service/product] that reminded us of your visit. We'd love to welcome you back."

This systematic approach increased my gift card recipient conversion rate from about 15% (just hoping they'd return) to nearly 45% becoming regular clients within six months.

The Simple Tracking Method

You don't need a CRM to do this. I used a basic index card system for two years before going digital:

Create a card for every gift card recipient with:

Their name and contact info
Date of visit
Service received
Gift giver's name
Notes from their intake conversation
Checkboxes for each follow-up step

File these in a monthly divider box. On the first of each month, pull the cards from two weeks ago (time for first follow-up), six weeks ago (time for second follow-up), and three months ago (time for final follow-up). Execute your outreach, check the boxes, refile.

Low-tech, but it works.

What Simple Marketing Strategy Helps Boost Gift Card Redemption Rates in January?

January is historically the slowest month for spas. Everyone's broke from the holidays, nursing New Year's resolution guilt, and avoiding "unnecessary" expenses. Meanwhile, you've got thousands of dollars in unredeemed gift cards creating that liability headache I mentioned earlier.

Here's the strategy that consistently fills my January appointment book:

The "January Jumpstart" Campaign

Starting January 2nd, I send a message to everyone who purchased a gift card in November or December:

"Hi [Name]! We hope your holidays were wonderful. Quick question: has [recipient name] scheduled their appointment yet? January is our quietest month, which means they can get their preferred time slot and receive extra-attentive service. We've reserved some premium spots specifically for holiday gift recipients—would you like me to text them a booking link?"

Notice what this does:

It reminds the purchaser (who probably forgot to remind the recipient)
It reframes January as a benefit (quieter = better service) rather than a limitation
It removes friction by offering to reach out directly
It creates urgency with "reserved spots"

About 60% of purchasers say yes to me contacting the recipient directly.

Then I send the recipient:

"Hi [Name]! [Purchaser name] mentioned they gave you a gift certificate for [your spa name]—how exciting! January is our VIP month, and we've reserved some premium appointment times specifically for gift certificate holders. Would you like to claim your spot? Book by January 15th and we'll include a complimentary [small upgrade/add-on]. Here's your easy booking link: [link]"

The Upgrade Incentive

Here's a tactic that increased my average gift card redemption value by 35%:

When a gift card recipient books, I automatically include a small complimentary upgrade in their appointment notes: an extra 15 minutes of massage, a paraffin hand treatment add-on, a mini facial enhancement, etc.

The upgrade costs me maybe $10 in product and time, but it accomplishes three things:

It exceeds expectations, making them more likely to rebook
It exposes them to premium services they might purchase in the future
It often leads to them spending beyond their gift card value at checkout

According to data from the gift card industry, 74% of consumers spend more than the card's value when redeeming it. But you have to get them in the door first, and a strategic upgrade incentive is the nudge many people need.

The Referral Loop

When a gift card recipient checks out after their visit, I have my reception staff say:

"I'm so glad [purchaser name] introduced you to us! If you know anyone else who might enjoy [the service they just received], we have a special going this month: refer a friend and you both get [incentive]. Would you like a few of our cards to share?"

This closes the loop beautifully: the original client gave a gift, the recipient had a great experience, and now the recipient might give a gift or referral to someone else. It's a perpetual motion machine of new client acquisition—but only if you systematically execute these touchpoints.

What Is the First Step a US Spa Should Take to Go 100% Digital with Holiday Gift Cards?

I know, I know. You picked up this article because you're wary of technology, not excited about it. I get it. I resisted going digital for years because I was convinced it would be complicated, expensive, and would alienate my older clientele who prefer simplicity.

I was wrong on all counts.

But here's what I learned: you don't have to overhaul everything at once. In fact, you shouldn't. The first step is surprisingly simple and immediately valuable.

Start with Digital Delivery Only

Before you change how you track, manage, or redeem gift cards, just change how they're delivered to customers.

Here's what this looked like for me:

November 2020: I announced to my email list that this holiday season, we were offering "instant delivery" gift cards. Customers could purchase them on our website, and the recipient would receive a beautifully designed email (we used a simple Canva template) within minutes.

The card email included:

A festive design with the spa's branding
The gift amount
A personal message from the purchaser
Simple redemption instructions
A "Book Now" button linking directly to our online scheduling

That's it. On the backend, I was still tracking everything in my spreadsheet. The recipient still could print the email or just mention it when booking. But the delivery was instant and digital.

Why This Small Step Matters

Last-minute buyers: I captured sales from people who realized on December 23rd that they still needed a gift. With digital delivery, "last minute" literally means minutes before giving the gift.

Reduced fraud: Digital cards sent directly to recipients can't be tampered with physically. The recipient gets their unique code directly, not through a compromised physical card.

Automatic documentation: Every digital gift card sale created an email record—both for the purchaser and recipient. This became part of my audit trail without any extra work.

Environmental appeal: I was surprised how many customers specifically mentioned appreciating that we offered a "green" gift option.

That first year, 65% of my holiday gift card sales were digital delivery. I'd expected maybe 20%.

The Next Step: Digital Tracking

Once you're comfortable with digital delivery, the next step is moving your tracking system online. You don't need to invest thousands in spa management software right away (though I'll talk about that in a minute).

For under $20/month, you can use a basic gift card management tool like Square Gift Cards, GiftUp, or GiftFly. These platforms:

Generate unique codes for each card
Track balances in real-time
Send automatic notifications when cards are purchased or redeemed
Provide instant reports on outstanding liabilities
Integrate with basic payment processors

I used Square's gift card feature for an entire year before upgrading to a full spa management system. It handled everything I needed and eliminated 90% of my manual tracking headaches.

When to Consider Full Spa Management Software

After you've gotten comfortable with digital delivery and tracking, you might be ready for a full system. Here's when it makes sense:

You're spending more than 5 hours per week on appointment scheduling, gift card management, and client record-keeping combined.

You're ready to implement automated marketing (the follow-up sequences I described earlier) without doing it all manually.

You want to capture and use client data to personalize experiences and increase retention.

You're planning to grow beyond your current capacity and need systems that scale.

This is where a platform like DINGG becomes relevant. I'm not going to give you a hard sell—I know you're skeptical of technology solutions. But I will tell you what changed for me when I finally made the switch:

Time savings: The automated appointment reminders, gift card tracking, and client management freed up about 8 hours per week—time I now spend on business development or, honestly, just having a life outside the spa.

Revenue increase: The built-in marketing tools helped me implement the systematic follow-up sequences I described earlier. My client retention improved by 15% within six months.

Reduced stress: Knowing that every gift card, every appointment, every client note was automatically logged and backed up eliminated the constant background anxiety of "Did I remember to write that down?"

Better client experience: Clients can book online 24/7, receive automatic confirmations and reminders, and access their gift card balances anytime. The convenience factor significantly reduced no-shows and last-minute cancellations.

But here's the key: I didn't do this until I was ready. I spent two years with my hybrid manual-digital system, and that was exactly the right pace for me. Don't let anyone pressure you into technology you're not comfortable with.

The Realistic Timeline

If you're starting from a completely manual system, here's a realistic timeline for transitioning:

Holiday Season 1: Offer digital delivery option while maintaining your current tracking system. Goal: Get comfortable with digital sales.

Months 1-3 after holidays: Continue both systems. Gradually shift your tracking to a basic digital tool (Square, GiftUp, etc.). Goal: Reduce manual tracking time.

Months 4-6: Evaluate whether you're ready for fuller integration. If you're comfortable and seeing benefits, research spa management platforms. Goal: Make an informed decision.

Holiday Season 2: If you've adopted a management platform, promote your streamlined digital system confidently. If not, continue with your hybrid system—that's fine too. Goal: Sustainable improvement, not perfection.

How Can I Protect My Spa from the Three Biggest Gift Card Money Leaks?

Let me bring this all together with the three most important protective measures you should implement before your next holiday season:

1. The Fraud Prevention Checklist

Print this and post it at your reception desk:

☑ Before displaying any gift cards:

Inspect packaging for any signs of tampering
Store sellable cards behind the counter, locked
Display only samples or informational cards publicly

☑ During each gift card sale:

Choose cards from back of inventory
Inspect packaging immediately before sale
Verify payment method for large purchases
Activate card only after payment clears
Log sale immediately (date, last 4 digits of card, amount, purchaser)

☑ When a gift card is redeemed:

Verify card balance before providing service
Check for signs of alteration or duplication
Log redemption immediately
Mark card as fully or partially used

☑ Weekly audit:

Compare sales log to bank deposits
Reconcile redemptions to services provided
Investigate any discrepancies immediately

2. The Liability Management System

Set up your separate gift card account (I use a simple savings account at the same bank as my business checking):

Deposit 100% of gift card sales
Transfer out only when cards are redeemed
Review balance monthly—it should match your outstanding liability
At year-end, consult your accountant about unredeemed balances

Implement clear expiration terms:

Research your state's requirements
Print expiration clearly on every card
Include expiration in email confirmations
Set a calendar reminder to recognize expired balances as revenue (per your accountant's guidance)

3. The Conversion System

Capture critical data at point of sale:

Purchaser name, email, phone
Recipient name (if known), email, phone
Occasion (birthday, holiday, thank you, etc.)
Any special requests or notes

Execute systematic follow-up:

Week 1: Send recipient booking invitation
Week 2: If not booked, remind purchaser
During visit: Exceed expectations, mention complementary services
Post-visit: Thank you note within 48 hours
Week 3: Special offer for next visit
Month 3: Final "we miss you" touchpoint if they haven't returned

Track your conversion metrics:

Redemption rate (how many cards get used)
Conversion rate (how many recipients become repeat clients)
Average additional spend beyond card value
Referral rate from gift card recipients

Even with manual tracking, you can calculate these quarterly and adjust your strategy accordingly.

Common Mistakes to Avoid with Holiday Gift Cards

Let me share the mistakes I made (or watched other spa owners make) so you don't have to:

Mistake #1: Treating gift cards as "free money"
That $5,000 you made in gift card sales in December? It's not profit until the cards are redeemed and you've delivered the services. I made the mistake of spending against that revenue, then scrambling in January when redemptions started rolling in and I needed to cover the service costs.

Mistake #2: No expiration policy
I have gift cards from 2015 still unredeemed. I can't legally recognize that money as revenue, and I have to maintain the liability on my books indefinitely. Don't make this mistake—implement reasonable expiration terms from the start.

Mistake #3: Failing to train staff on fraud red flags
My first fraud incident happened because a newer staff member didn't know what to look for. A brief training session would have prevented a $300 loss.

Mistake #4: Not capturing recipient contact information
For my first two holiday seasons, I only captured purchaser info. I had no way to reach out to recipients directly, which meant I lost countless opportunities to convert them into regular clients.

Mistake #5: Complicated redemption process
I initially required gift card recipients to bring the physical card or printed email, present it at check-in, and have it manually verified. This created friction and led to frustrated clients and staff. Simplify the process as much as possible.

Mistake #6: Underpricing gift cards
In an attempt to drive holiday sales, I offered $100 gift cards for $80. Sounds smart, right? Wrong. I was discounting services I'd have to provide at full cost, eating into my margins. Gift cards should be sold at face value—save your discounts for strategic promotions that drive specific business goals.

Mistake #7: Ignoring the data
For years, I sold gift cards without analyzing which services were most popular among recipients, which purchasers were repeat gift-givers, what redemption patterns looked like, or how many recipients converted to regular clients. Once I started tracking and analyzing this data, I could make informed decisions that significantly improved results.

FAQ: Your Gift Card Questions Answered

How long should I allow before gift cards expire?
Check your state laws first—many states regulate gift card expiration periods. Most allow 2-5 years. I recommend 3 years: long enough to be generous, short enough to eventually recognize unredeemed balances as revenue. Always print the expiration date clearly on the card.

Can I charge a fee for gift cards?
Most states prohibit fees on gift cards (dormancy fees, service charges, etc.). Check your specific state regulations. Generally, it's better to sell cards at face value with no fees—it's simpler and builds goodwill.

What should I do if a customer says their gift card balance is wrong?
Pull your records immediately. Check your sales log and redemption log. If you can verify the discrepancy is your error, make it right—apologize and honor the correct balance. If your records show the card was properly redeemed, explain gently but firmly. This is why detailed logging is so important.

Should I offer both physical and digital gift cards?
Yes, especially during the transition period. Some customers (and recipients) still prefer physical cards. Offer both options and let customers choose. Over time, you might find digital cards dominate and you can phase out physical cards.

How do I handle partially used gift cards?
Your tracking system (whether manual or digital) should note the remaining balance after each redemption. For physical cards, write the remaining balance on the card. For digital cards, your system should automatically update. Always verify the balance before providing service.

What if someone loses their gift card?
This is why tracking is crucial. If you have the purchaser or recipient's name in your system, you can look up the card number and remaining balance. For physical cards, consider issuing a replacement with the remaining balance (this is easier with digital tracking). Make your lost-card policy clear at time of purchase.

Can I restrict what services gift cards can be used for?
Generally, no—gift cards should be usable for any service or product you offer. However, you can sell promotional cards with restrictions (e.g., "Good for any 60-minute massage service only"), as long as the restrictions are clearly stated at purchase. Regular gift cards should have no restrictions.

How do I handle gift card refund requests?
Most states don't require you to provide cash refunds for gift cards unless the remaining balance is very small (often $5 or less). Your policy should be clear at purchase: "Non-refundable; redeemable for services only." This protects you from fraud and abuse.

Should I sell gift cards on third-party platforms like Groupon?
Be very cautious. While these platforms promise exposure, they typically take 50% or more of the sale price, and customers often treat them as one-time deals rather than entry points to ongoing relationships. I'd recommend building your own direct gift card sales first.

How can I encourage gift card purchasers to buy higher values?
Suggest card values that align with your popular services: "Our signature facial is $150, or you could give a full spa day package for $300." Offering pre-set value options (rather than asking customers to choose any amount) tends to increase average purchase values.

The Bottom Line: Take Control Before the Next Holiday Season

Here's what I want you to take away from this: gift cards are one of the best tools you have for holiday revenue, client acquisition, and building loyalty—but only if you manage them properly.

The manual, paper-based approach might feel comfortable, but it's costing you money in three ways: fraud losses, accounting chaos, and missed client conversion opportunities. The good news? You don't have to overhaul everything overnight.

Start here:

This week: Implement the basic fraud prevention checklist. Move your gift cards behind the counter, train your staff on red flags, and start inspecting every card before sale.
This month: Set up your separate gift card bank account and start depositing all gift card sales there. Create your basic tracking spreadsheet if you don't have one already.
Next 90 days: Research your state's gift card laws and implement a clear expiration policy. Design your recipient follow-up sequence and start executing it for every gift card sold.
Before next holiday season: Evaluate whether you're ready to offer digital gift card delivery. If yes, set up a simple system (Square, GiftUp, etc.) and promote it starting in October.

If you're spending more than a few hours per week on manual tracking and follow-up, or if you're ready to really leverage gift card data for growth, it might be time to explore a comprehensive spa management platform. DINGG offers an all-in-one solution that handles gift cards alongside appointment scheduling, client management, inventory, and automated marketing—all designed specifically for spas and salons.

But whether you implement a full system or stick with improved manual processes, the key is this: treat gift cards as the strategic business tool they are, not just a holiday sales tactic. Protect them from fraud, manage the liability properly, and systematically convert recipients into loyal clients.

Do this right, and gift cards will stop stealing your holiday money and start generating sustainable, year-round revenue instead.

Ready to stop the leak? Start with one change this week. Pick the easiest item from the fraud prevention checklist and implement it today. Then next week, add another. Small, consistent improvements compound into major results.

Your future self (and your accountant) will thank you.