Learn about gift cards
What is a gift card?
Also known as brand vouchers, gift vouchers and brand cards, gift cards are a digital mode of payment which carries a amount along with a pin / card no. You can buy these gift cards and use them to pay on 300+ brand online and offline as well.
Why should I use a gift card?
Gift cards help you get great value on your purchase with a brand. They simplify giving, help with budgeting, and are easily sent across distances, ensuring your thoughtful gesture brings joy and value.
How to use a gift card?
To use a gift card, simply present it at the time of purchase in-store or enter the card’s unique code at checkout when shopping online. The amount of your purchase will be deducted from the card's balance.
Browse

Part 3: Legal Considerations and Best Practices

Last updated :
April 25, 2024
/

minutes read

When venturing into the world of gift cards, understanding the legal landscape and adhering to best practices are key to a successful program.

This section sheds light on essential legal considerations and shares expert advice to navigate this aspect smoothly.

Fashion Tour of India: Click & Discover!
Dive into India's colorful wardrobe with our easy-to-use map! Just click on a state and see what people wear, from timeless classics to trendy outfits. Plus, check out the cool brands they love. It's fun, fast, and full of surprises!

Understanding the Legalities

The legal framework around gift cards can vary widely, but there are common threads, especially in terms of expiration dates and fees.

For instance, the Reserve Bank of India (RBI) guidelines suggest that issuers should not impose an expiry date earlier than one year from the date of issuance.

Transparency about terms and conditions is not just good practice; it's a necessity to build trust with your customers and stay compliant.

Gift Card Management Best Practices

Here's a comprehensive list of best practices for running a successful and secure gift card program in India:

1. Compliance with regulations:
  - Adhere to the Reserve Bank of India (RBI) guidelines on prepaid payment instruments (PPIs)
  - Comply with the Information Technology Act, 2000 and its amendments
  - Follow the Payment and Settlement Systems Act, 2007
  - Implement Know Your Customer (KYC) and Anti-Money Laundering (AML) measures

2. Security and fraud prevention:
  - Use secure encryption for gift card data storage and transmission
  - Implement multi-factor authentication for customer access and transactions
  - Regularly monitor for suspicious activities and transactions
  - Establish a dedicated fraud prevention team and processes
  - Educate customers on identifying and reporting potential scams

3. Data privacy and protection:
  - Implement strict access controls and data segregation
  - Regularly audit and update data security measures
  - Obtain explicit customer consent for data collection and usage
  - Provide clear and transparent privacy policies

4. Secure distribution and delivery:
  - Use tamper-evident packaging for physical gift cards
  - Implement secure email and SMS delivery for digital gift cards
  - Partner with reliable courier services for physical gift card shipping
  - Offer tracking and confirmation for gift card deliveries

5. Clear terms and conditions:
  - Provide easy-to-understand terms and conditions for gift card usage
  - Clearly state expiration dates, fees, and any restrictions
  - Include information on balance checking, card replacement, and dispute resolution
  - Make terms and conditions easily accessible on your website and gift card packaging

6. Customer support and education:
  - Offer multiple channels for customer support (e.g., phone, email, live chat)
  - Provide clear instructions on how to use and redeem gift cards
  - Educate customers on safe gift card practices and potential scams
  - Promptly address customer inquiries and complaints
  - Maintain a comprehensive FAQ section on your website

7. Inventory management and tracking:
  - Implement a robust inventory management system for physical gift cards
  - Track gift card sales, activations, and redemptions in real-time
  - Set up alerts for low inventory levels and unusual activity
  - Regularly reconcile gift card balances with financial records

8. Partnerships and affiliations:
  - Collaborate with reputable brands and merchants to expand gift card acceptance
  - Establish clear agreements on gift card terms, commissions, and liabilities
  - Regularly review and update partner relationships based on performance and compliance

9. Marketing and promotions:
  - Develop targeted marketing campaigns for different customer segments
  - Leverage social media, email, and SMS for gift card promotions
  - Offer personalized gift card options and designs
  - Run seasonal and holiday-specific gift card campaigns
  - Incentivize gift card sales through discounts, bundles, and loyalty programs

10. Continuous improvement and innovation:
   - Regularly gather and analyze customer feedback and market trends
   - Invest in technology upgrades and new features to enhance the gift card experience
   - Explore partnerships with fintech companies and digital wallets
   - Stay informed about industry best practices and emerging trends
   - Continuously assess and optimize gift card program performance

By following these best practices, you can build a robust, secure, and customer-centric gift card program that complies with Indian regulations and meets the evolving needs of your customers.

Regular monitoring, updates, and innovations will help ensure the long-term success and growth of your gift card program in the dynamic Indian market.

Building Trust with Your Customers

Trust is the cornerstone of any successful gift card program.

This involves not just legal compliance but also creating policies that are customer-friendly.

For example, offering easy replacement for lost or stolen cards or allowing balances to be transferred to new cards can go a long way in building loyalty and trust among your customers.

Conclusion

Setting up a gift card program involves careful consideration of legal requirements and best practices to ensure its success and sustainability.

By focusing on compliance, security, and customer trust, businesses can create a gift card program that not only meets regulatory standards but also resonates well with customers, fostering loyalty and driving revenue.

😎 Top selling gift cards now
😎 Top selling gift cards now
😎 Top selling gift cards now
More in this series

Claim This Offer
Only on Hubble Money
Shuaib Azam
Shuaib is a Marketing & Growth lead at Hubble. When he isn't working on growth initiatives, Shuaib writes fiction and doodles space monkeys.

Claim This Offer
Only on Hubble Money
Get rewarded every time you shop.
Up to 10% discount on 300+ brands