In WooCommerce, gift cards and discount codes are both typed in the same coupon field. For your business, they are completely different: one brings money in, the other gives money away.
A gift card is a payment in advance
- Someone pays you now, for a purchase made later by someone else.
- It has a value (25 €, 50 €) and a balance that goes down with each order.
- It is often a new customer for you: the recipient discovers your store.
- Many countries treat it as money owed to the holder until it is spent: ask your accountant how to record it and which validity rules apply.
A discount code is a price reduction
- Nobody pays for it: it lowers the price of an order.
- It is a marketing tool: welcome offer, newsletter, sale, abandoned cart.
- It should be limited: per customer, per amount, per date.
Side by side
| Gift card | Discount code | |
|---|---|---|
| Who pays | The buyer, in advance | You, in margin |
| Value | Fixed amount with a balance | Percentage or amount off |
| Usage | One or several orders until spent | Usually once |
| Best for | Gifts, last-minute Christmas, customer service | Promotions, email list, recovery |
Do not mix them
- A gift card should not be able to buy another gift card.
- A gift card should keep its balance after a partial use.
- A cancelled order paid with a gift card should give the balance back.
Vouchly handles these rules automatically: balance kept across orders, restored on cancellation, gift cards excluded from gift card payments. See the demo and read how to sell gift cards.
Frequently asked questions
Can I use WooCommerce coupons as gift cards?
You can, but a normal coupon is used once; a gift card plugin keeps the balance across orders.
Do gift cards expire?
It depends on your country’s rules; choose a validity that respects them, or no expiry.
Is a gift card a discount?
No, it is a payment made in advance; a discount code is a price reduction.