How to Prevent Fraudulent Misuse of Your Gift Cards

Gift cards are a powerful tool for driving sales and encouraging customer loyalty. However, they can also be a target for fraud if not managed correctly. At Go Gift Cards, we understand the importance of providing flexible solutions for your store. Our third-party app allows you to sell gift cards in ways that Shopify’s native system does not, including the ability to let your customers send or schedule a gift card to a friend.

While this added flexibility is beneficial for your customers, it also introduces potential risks that need to be managed carefully. One such risk is the possibility of creating an infinite loop of gift card purchases, which could lead to fraudulent activity and financial loss. Here’s how you can prevent this from happening and ensure your gift card program remains secure.

1. Understand the Difference: Our Gift Cards vs. Shopify Native Gift Cards

Unlike Shopify’s native gift cards, our gift cards are treated as regular products within your Shopify store. This means they can be purchased with other gift cards. While this offers greater flexibility in how your customers use gift cards, it also means you need to take extra steps to manage their use effectively.

2. Exclude Gift Cards from Discount Codes

To prevent an infinite loop where customers use one gift card to buy another and potentially exploit discounts, we strongly recommend excluding gift card products from discount codes. By doing this, you ensure that gift cards cannot be purchased at a discount, effectively eliminating the risk of abuse.

How to Exclude Gift Cards from Discount Codes:

Create a collection and set the criteria as "Product type" is not equal to "Gift Card".

Set your discount code to apply to this collection.

By setting up this rule, you ensure that even if a customer tries to purchase a gift card using another gift card, they won't be able to apply a discount, thereby preventing any possibility of fraud through this method.