Use a gift card when someone pays in advance to give a guest spending value. Use loyalty credit when your restaurant provides a promotional reward for an eligible action, such as a qualifying purchase. Both may appear as a balance at checkout, but they serve different purposes and deserve separate tracking.
The buying decision is less about which balance looks simpler on a screen and more about who funded it, when a guest can use it and what your reports show. A gift card can help you sell a present. Loyalty credit can encourage a return visit without asking the guest to buy that credit.
Start with the source of the balance
A purchased gift card begins with money from a buyer. The buyer may give the card to someone else, who later presents it at the restaurant. The card’s balance represents value the guest can use under the card’s terms. Staff need a reliable way to look up that balance and identify the card presented.
Loyalty credit begins with a restaurant-funded promotion. A guest might earn points on an eligible order and later exchange enough points for a reward. Or a program might issue a fixed credit directly. The program rules determine what counts, when a reward becomes available and what it can be applied to.
Points are not necessarily spendable dollars. A screen showing points worth an estimated $5 does not mean the guest can redeem $5 today. There may be a threshold, a required conversion step or restrictions on the reward. Ask the vendor to show the actual redemption path, not just the points balance.
You may want both instruments. A holiday shopper and a regular diner have different needs, even if both eventually pay part of a check with stored value. Keeping those balances distinct also gives staff a clearer answer when a guest asks where the value came from.
Follow two balances through checkout
The following example is hypothetical. Assume a restaurant sells a $30 gift card and separately gives a regular guest a $6 redeemable loyalty reward. The software permits each to cover eligible food and drink and retains an unused gift card balance. Actual redemption rules depend on the program and vendor.
| Step | Gift card | Loyalty reward |
|---|---|---|
| Value created | A buyer pays $30 for a card. | The restaurant issues a $6 reward after the guest meets the program rules. |
| Guest visit | A guest applies $20 to an eligible $20 check. | A guest applies the full $6 reward to a separate eligible $18 check. |
| Remaining amount | $10 remains on the card. | The guest pays the remaining $12; the reward balance is $0. |
| Reporting question | Can staff see the original sale, $20 redemption and $10 balance separately? | Can staff see the $6 reward issued and redeemed separately from the $12 paid? |
The table shows two different flows, not two ways to describe the same sale. The gift card buyer paid $30 before the visit; using $20 of that stored value does not create another $20 of cash received at redemption. In the reward example, the restaurant supplied the $6 promotional value and received $12 from the guest at that visit. The two visits are separate, so their amounts should not be combined into a single transaction.
These figures show balances and amounts paid, not profit or an accounting entry. They exclude fixed software costs, payment processing, taxes and exception costs such as support for a disputed balance. They also do not assign a cost to the food served. For a fuller reward-cost exercise, use the restaurant loyalty reward cost guide.
For this scenario, the $30 card fits the prepaid gift because a buyer funds value for another person. The $6 reward fits the promotion because the restaurant funds it after the guest qualifies. That recommendation assumes the stated rules; it does not establish how a particular system handles partial use, expiration or exceptions.
Check redemption and balance visibility
Ask to see what the guest, cashier and manager each see. A guest needs to know whether a balance is available and how to present it. A cashier needs to know what is eligible before promising a discount. A manager needs enough history to resolve a complaint without guessing.
- Gift card lookup: Can staff find a card and view its current balance and transaction history? What happens if the guest loses the card or code?
- Reward status: Does the screen distinguish points earned, a reward available to claim and credit already redeemed?
- Checkout: Which order types and items accept each instrument? Can a guest combine either one with another offer or payment method?
- Corrections: Who can reverse a mistaken redemption or adjust a balance, and is the change recorded?
- Returns and cancellations: Where does value go when an order is canceled or refunded, and can staff explain the result to the guest?
These questions matter during a busy shift. For example, a guest may say they earned a $6 reward while the account shows points that have not yet been converted. The cashier needs to see whether there is an actual redeemable reward before applying anything to the check.
Ask for a simulated walkthrough using test balances and test orders. It should not charge a real card, send a guest message or dispatch a courier. If you later run a live-service pilot, agree on its scope, staff responsibilities and how you will handle real guest issues before starting.
Compare reports, terms and operating costs
Before choosing software, ask for sample exports that distinguish gift card sales, redemptions, adjustments and remaining balances. For loyalty, ask whether the export separates points earned from rewards issued, redeemed, expired or adjusted. Check whether the report includes transaction dates and identifiers your team can use to reconcile the figures with order records.
Do not assume a dashboard total answers every accounting question. A report can show operational activity without determining how your business should recognize or classify it. Give sample exports and the program terms to your accountant or another qualified adviser for advice on your circumstances.
Review guest-facing terms before launch. Ask the vendor which expiration settings, balance notices and restrictions can be configured for each instrument, and how changes affect existing balances. Rules may differ by jurisdiction and by the nature of the value. Have qualified legal and tax advisers review the terms and treatment where needed; a software setting alone does not settle those questions.
Also compare written quotes for the workflow you intend to run. Ask what is included for selling and redeeming gift cards, maintaining loyalty accounts, sending messages, exporting data and handling adjustments. A quoted processing fee is not the all-in operating cost: software charges, messaging, staff time and exceptions may also matter. Ask whether fees apply when value is sold, redeemed or both.
For Fleksa, check the current plans and pricing; pricing information was checked in November 2026. Confirm the features, setup and charges for your location and intended workflow in a current quote.
Choose the workflow before you launch
Start with the guest action you want to support. If a buyer needs a present, prioritize purchase, delivery of the card or code, balance lookup and redemption. If you want to reward repeat visits, prioritize eligibility, a clear threshold, an actual redeemable reward and reporting on issued and used value.
Then write down two or three exceptions your team is likely to face: a lost code, an unclaimed reward or a canceled order. Ask each vendor to walk through them with the same assumptions. Compare what the guest sees, what staff can correct and what appears in the export. The best fit is the workflow your team can explain and reconcile, not merely the one with the most balance options.
Fleksa describes gift cards and points for eligible orders among its marketing tools. Its loyalty documentation and campaign documentation are useful starting points for your questions. Having a guest’s contact details does not by itself establish permission to send marketing; ask how your team records and respects the relevant choices.
Next, list your intended gift and reward rules, then compare the relevant workflow and current availability with Fleksa. Request a walkthrough and a written quote covering both normal redemptions and the exceptions that matter to your staff.
Frequently asked questions
Can loyalty points be used like a gift card?
Not necessarily. Points may need to reach a threshold or be converted into a reward before they can be redeemed. Ask the vendor to show what the guest can actually use at checkout.
Should gift card and loyalty activity appear in the same report?
They can appear in one export if the entries remain distinguishable. Ask for separate fields or categories for purchased value, promotional rewards, redemptions and adjustments.
Can a gift card or reward expire?
Terms and applicable rules can differ. Ask what the software can configure, communicate the terms to guests and have a qualified adviser review the program for your circumstances.
