Vendion
    Online Order

    Online Gift Card – Redemption at Checkout

    5 min read#14

    Gift cards are a powerful way to build loyalty and cash flow. In Vendion, guests can redeem their gift cards directly at online ordering – without visiting the restaurant. This article explains the entire flow.

    Which types of gift cards are supported?

    Vendion supports several gift card formats:

    • Digital gift cards – 6-character code purchased online
    • Physical gift cards – plastic card with QR and code
    • Campaign gift cards – e.g., "SEK 500 gift for your next order"

    All use the same redemption flow in Online Order.

    The guest's flow

    1. Guest places order as usual
    2. At checkout the section "Gift card, points, or stamp card?" is expanded
    3. Guest chooses Redeem gift card
    4. Guest enters:
      • Card code (6 characters, e.g., "A4X-9B2")
      • Amount to redeem (or "Entire balance")
    5. System validates the code and calculates balance
    6. The discount is applied to the order total
    7. Remaining amount is paid with card or other payment method

    How it looks in the chat

    Your order: 425 kr
    
    [+] Gift card, points, or stamp card?
        ├─ Redeem gift card
        │   [Card code: A4X-9B2]
        │   [Amount: 300]
        │   Card balance: 500 kr
        │
        └─ [Redeem]
    
    After redemption:
    Discount from gift card: -300 kr
    To pay: 125 kr
    Remaining on card: 200 kr
    
    [Pay with card]
    

    What happens behind the scenes

    1. The system validates the code and returns balance or error
    2. On valid code, the system checks the code is active and not expired
    3. The system checks that the balance is sufficient
    4. The card's balance decreases and the order total updates
    5. On payment, everything is posted (for accounting)

    Partial payment and multiple gift cards

    The guest can:

    • Partial pay – use only part of the gift card's balance
    • Combine multiple cards – e.g., two cards of SEK 200 each for SEK 400 total discount
    • Combine with points – gift card + loyalty points in the same order

    Each redemption is logged separately in the system.

    Balance calculation

    The balance after redemption is calculated:

    New balance = Old balance - Amount redeemed
    

    If the guest redeems SEK 200 from a card with SEK 500 balance:

    • The card has SEK 300 left for future orders
    • The card stays active until balance is 0 or expiry date is reached

    Error handling

    "Invalid code"

    • The code doesn't exist in the system
    • Misspelled code (ask the guest to check spelling)
    • Card is already fully redeemed (balance = 0)

    "Card has expired"

    Gift cards have validity time (default 24 months from purchase). An expired card cannot be redeemed. If it's just a few days over the limit, contact the restaurant – they can manually approve redemption.

    "Insufficient balance on card"

    The guest tried to redeem more than the card's balance. Show current balance and ask them to lower the amount.

    "Card is blocked"

    The card has been flagged as stolen or misused. Contact the restaurant to sort out.

    VAT handling

    Gift cards are multi-purpose vouchers per the VAT Act (ML Ch 5 § 40). This means:

    • VAT is not paid at issuance (gift card sale)
    • VAT is paid at redemption (when the guest consumes the goods/service)
    • The VAT rate depends on what the guest buys with the card

    In accounting, the amount is moved from liability account 2421 (Gift card liability) to revenue account 3001 + VAT account 2610/2620.

    See accounting article "Gift Cards – Accounting at Redemption" for a deep dive.

    Expiry and account 3960

    If a gift card expires without being fully redeemed, the unused balance is automatically moved to account 3960 – Other income / forfeited gift cards. A nightly cron job scans expired cards and performs the accounting.

    Security

    • Codes are generated cryptographically secure (not guessable)
    • Rate-limited validation – max 10 code guesses per IP per hour to prevent brute force
    • Codes are shown only once at purchase – after that the customer sees balance but not the full code
    • Order linking – each redemption is logged with order ID for traceability

    Gift card refunds

    If a guest wants to return an item paid with a gift card:

    • The amount is refunded to the gift card's balance (NOT to the card they paid the rest with)
    • The guest can use the refunded balance on the next order
    • Accounting: D 2421 (liability) / C 1580 (receivable) – no VAT

    Tips for restaurateurs

    • Sell gift cards online – increases cash flow
    • Set reasonable validity time – 12-24 months is standard
    • Market during holidays – Christmas gift cards, birthday gifts
    • Follow up on expiry dates – remind guests 30 days before expiry

    This feature is part of Vendion Online Order.

    Curious how it looks in practice? Read more about the product or book a short demo.

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