The most common use of gift card is also the most simple — providing a fixed or customer-determined dollar value on an electronic gift card. You can implement a number of different programs for your electronic gift card system depending on what you want to offer.

Loyalty cards are one of the more prominent alternative uses of electronic gift cards. They reward both frequent and occasional shoppers with a "points for dollars" system. Once customers complete a membership form, every purchase they make earns credits that can be used towards future purchases. Membership cards, a variation of loyalty cards, reward customers with exclusive discounts and special offers just for doing their regular shopping.

Each time an electronic card is scanned for a loyalty program, the database tracks the items customers buy. Businesses use this information to create detailed demographic analyses to market more efficiently to customers, and to help determine how to stock their shelves.

You can also use electronic gift cards to issue merchandise credit. Not only do you keep the value of returned items funds in-house, but you also distribute marketing material to your customers.

Some businesses incorporate gift cards into larger marketing efforts. They create thousands of gift cards with small dollar amounts on them — usually $1 to $3 each — and then send them to customers via direct mail or hand them out in store. Studies indicate that these cards are redeemed at a higher rate than similar printed coupons and they help promote your business.

Multiple programs, same card
Gift cards can also manage multiple programs at once: for example, a monetary gift card can also be programmed to work as a loyalty card. With different programs on the same card, the customer has a reason to keep the card instead of throwing it away once the funds are depleted. Setting up multiple programs on a single card also saves you money since you only need to pay a single transaction fee to activate the card.