we did try that multiple times.. on a virgin iphone as well. but after i added the gift card product (carefully reading the OP post), and then installing the POS app on my person phone it showed up right away.

For anyone else having this issue, please make sure you have a "Gift Card Product" available in your product catalog. If you do not have this product, the option will not show on your returns.

Any update on this ? Seems like a major bug.