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Redeeming egift cards online by out of state gift recipients

Hi!  I may be the only seller out there with this problem, but I hope not.  I have heard from multiple gift card recipients that they are unable to use their gift card to purchase products sold in my online store.  In other words, if they'd like to buy something featured in my online store and use their gift card to pay for it, they must come into my store to pay.  Even if their gift card is showing as a "card on file" in their customer profile, the saved gift card is not presented as a method of payment.  It is a Square policy not to allow it.  This makes no sense to me.  I have people buying gift cards for friends and family in my region, and the only way the gift card recipient can buy and have something delivered, is to call or email me with their order.  Why is this so hard?  Am I the only one?  If you've been met with this, what did you do to get around the lack of ability?  This, plus not being able to do recurring subscription billing, makes me an unhappy customer.  

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I didn't describe the topic correctly:  I meant to describe it as gift cards purchased by anyone, physical or e-gift cards, that cannot be used to pay for items online. It doesn't matter if the purchaser is out of state.  According to Square, gift cards are not able to be used as a form of payment for an online order, even if the card is registered to a Square customer and is branded with only my company info.  Maybe this is commonplace across all industries and I never noticed but it's really tying my hands promotionally.

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