Does gift card purchase revenue get deposited immediately?

Shopify Discussion

Topic summary

Gift Card Payment Processing:

When customers purchase gift cards, the funds are deposited immediately into the merchant’s account—just like any regular product sale. The money does not sit in limbo waiting for redemption.

Revenue Reporting vs. Cash Flow:

However, Shopify’s accounting treats gift card sales differently in reports:

  • Gift card sales don’t appear in daily sales reports or total sales figures until redeemed
  • They are tracked separately in the “Gift cards sales” finance report
  • The actual payment appears in the “Payments” finance report under the customer’s payment method
  • If a gift card is never redeemed, the merchant keeps the money, but it won’t show as revenue in reports

Redemption Tracking:

When gift cards are used:

  • The full item value appears in sales reports (e.g., a $20 item shows as $20 in sales, even if $5 was paid via gift card)
  • The gift card portion appears as a separate entry in the Payments finance report

One user asked about tracking which specific orders redeemed gift cards, but no direct report solution was provided beyond checking the Payments finance report.

Summarized with AI on October 28. AI used: claude-sonnet-4-5-20250929.
1

Hello! I am aware that gift card purchases do not show up in daily sales until they are redeemed. But does that money get deposited into our accounts? Or does it just sit in limbo until it gets redeemed?

Customers purchasing gift cards is great way to help a struggling business but not if the business doesn’t get the money until it is redeemed. Because what if it doesn’t get redeemed for a year or ever?

Any insight?

Thank you.

2

Hey @Seedtostar ,

Great question! Purchasing gift cards can be a very effective way to provide immediate financial support to a business.

When a customer purchases a gift card from your store, the money from that sale is processed just like any other regular product sale. It doesn’t sit in limbo and you don’t have to wait until the gift card is redeemed to receive the funds.

The reason gift card sales don’t show up in your daily sales reports until they’re redeemed is because Shopify doesn’t count the sale of a gift card as revenue until the gift card is actually used to make a purchase.

Furthermore, when you sell a gift card:

  • It isn’t included in any sales reports, nor the total sales number in the Home sidebar.
  • It is included in the Gift cards sales finance report.
  • The amount paid for the gift card is included in the Payments finance report under the payment method that the customer used, such as Visa or Cash.

So, you do receive the money right away, but it’s not counted as revenue in your Shopify reports until the gift card is redeemed. If a gift card is never redeemed, you would still keep the money, but it wouldn’t be reflected as revenue in your reports.

Gift cards can help build customer loyalty. When someone has a gift card, they’re more likely to return to the business to use it. This gives the business another opportunity to impress the customer and encourage repeat business. If you are interested, we have a fantastic guide on utilising Gift cards right here.

I hope this helps clarify things for you! Please let me know if you have any other questions.

3

Is there a report that shows exactly which order redeemed a gift card in our financial reports without having to search each order?

4

Hey @fiberlok ,

Gift cards appear in a few places in your reports. There are specific conditions that affect where they get recorded.

When a customer uses a gift card to purchase something from your store:

  • It is included in sales reports. The full value of the item is claimed as sales. For example, a $20 t-shirt with $5 of that purchase paid for by a gift card will show up as $20 in sales.
  • The amount paid by or refunded to a gift card is included in the Payments finance report as a gift card entry.
1 Like
5

Automotive & Accessories Store can I also earn if a customer purchases for an item on my store with a gift card?