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Should I charge the customers for the physical gift cards?

I’m not sure if I can, or if I should charge the customers for purchasing physical gift cards.

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Hello @zayn191 and thanks for your question. Are you talking about adding a small charge or fee on top of the actual amount of money placed on a gift card? I guess you could add a "service charge" for this fee, but in thinking about competing with other retailers, especially this time of year for Holiday shopping, I would reconsider doing this. You may be legally able to justify this time of service charge or fee, but as a consumer when i've purchased gift cards from other retailers I do not recall being charged a fee. You can try it out and see how your customers respond...but my honest guess is your customers may not like this.

 

Is the reason for doing this to recoup the cost of having to purchase physical plastic gift cards? If that is the case, I would just write this cost of as an advertising or business supply expense on your taxes and this will offset your biz profits. Similar to absorbing the other costs of doing business, such as shopping bags, boxes, advertising expenses, etc.

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Thank you. That was very detailed and exactly what I was looking for. It makes sense to just write it off as an expense. But one thing I would like to mention is that I’m not too worried about other retailers because I’m not a retailer. I don’t have much competition in my area. I provide entertainment service and I’m the only one to provide entertainment of this kind in the area. 

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It's worth a shot...try it and see how your customer's respond, and based on any feedback you may receive from them you'll know if this is best for your business. Another option is to someway in addition to the gift card charge, include something small that seems like an added value, so when they do purchase a gift card, the service could include something extra they wouldn't receive without purchasing a gift card.

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