Running promotions on your Shopify store? You’ve probably come across two key tools: gift cards and discount codes.
At a glance, they might seem similar — both reduce what a customer pays. But under the hood, they work very differently. Understanding the right tool for the job can improve your customer experience, simplify operations, and maximise revenue.
In this guide, we’ll break down:
- What gift cards and discount codes are
- How they behave in Shopify
- Which use cases they’re best suited for
- How to combine them strategically
- Our pro tips for using each effectively
What Is a Shopify Gift Card?
A Shopify gift card is essentially store credit that the customer can spend like money. It comes with a unique 16-character code, issued either when purchased as a product or manually by the merchant.
By default, gift cards:
- Are treated as a payment method, not a discount
- Can be used across multiple orders until the balance runs out
- Are auto-generated by Shopify (codes can't be customised)
- Are sent to the buyer via email (unless your theme supports recipient entry at checkout)
- Can only be redeemed storewide — you can't restrict them to a collection or product natively
Need gift cards sent directly to the recipient with a message or delivery date? Use an app like Gift Card Pro or Rise.ai.
What Are Shopify Discount Codes?
Discount codes are rules you create that apply a discount at checkout. Unlike gift cards, they are:
- Customisable (e.g. 10% off, £5 off, free shipping)
- Fully configurable by product, collection, order value, or customer tag
- One-time use or multi-use
- Non-stored value (they don’t track balance)
You can create discount codes from Admin → Discounts, or automate them with tools like Shopify Flow (for Plus merchants).
Key Differences at a Glance
| Feature | Gift Cards | Discount Codes |
|---|---|---|
| Stored balance | ✅ Yes | ❌ No |
| Reusable | ✅ Until balance = £0 | ✅ or ❌ (based on settings) |
| Custom code | ❌ Auto-generated | ✅ Fully custom |
| Restrict by product/collection | ❌ Not natively | ✅ Yes |
| Redeemed as | Payment method | Price discount |
| Send to recipient | ❌ Native = buyer only ✅ With app |
✅ |
| Trackable in reports | ✅ Yes | ✅ Yes |
Example Use Cases
- Customer wants to gift £50 to a friend: Use Gift Card
- Promo: 20% off all “Prints”: Use Discount Code
- Store credit for return: Use Gift Card
- Black Friday £10 off £100+: Use Discount Code
- Voucher only valid on artwork: Use Discount Code (with collection restriction)
Can You Use Both Together?
Yes, but with caveats. Shopify applies the gift card first as a payment method, then applies the discount code (if eligible).
Pro Tip: Always test your checkout flow to ensure codes stack properly and your customer experience is smooth.
Limitations & Workarounds
| Need | Native Shopify | Solution |
|---|---|---|
| Restrict gift card to specific products | ❌ | Consider Rise.ai |
| Schedule delivery | ❌ | Consider Gift Card Pro |
| Branded gift card designs | ❌ Limited | Use custom template or app |
| Upload your own codes | ❌ | Not supported |
Legal Note
In the UK and many countries, gift cards can’t expire too quickly or include hidden fees. Review your local laws or terms.
Example From Our Store
We recently helped a client issue a £20 voucher redeemable only on their “Prints” collection.
We used a discount code restricted by collection. Shopify’s native gift cards don’t allow this, so it was the cleaner option. If they’d needed balance tracking, we’d have recommended Rise.ai.
Helpful Links
- How to sell gift cards in Shopify
- How to create discount codes
- Gift Card Pro – App Store
- Rise.ai – Store Credit App
- More Shopify Tutorials
Need Help?
Want help setting this up on your store? Contact our Shopify Experts — we’ll help you choose the right approach for your store, set it up, and keep your promotions running smoothly.