Redeeming a Taxed Gift Card


Overview

Note: This article provides instructions on redeeming gift cards sold with tax. If your center does not apply tax on the sale of gift cards, then read Redeeming a Gift Card.

A taxed gift card is a card purchased with tax included in its sale price. For instance, a guest purchased a gift card for a $50, which included a 10% tax. The guest thus paid, a total of $55 to purchase the gift card.

Gift cards are redeemed by selecting them as a payment option in the point of sale (POS). They are sold with same or different price and value and are redeemable by default only for services and day packages (excluding tax, if any). This article explains what can be redeemed and provides instructions on how to redeem a taxed gift card in POS.  

What can be Redeemed?

Taxed gift cards are sold with one of these options:

  • Same price and value, or
  • Different price and value

Price is the amount for which you sell the card to the guest (excluding taxes, if any). Value is the gift card price including any additional amount the organization provides on the gift card purchase. 
Example: The guest purchases a gift card for $200 (price paid by the guest). If the value of the card is $250, it means that the guest can redeem the card for $250 worth purchases or services.

Based on the gift card sold (same or different price and value), the guest can redeem the card only for the items provided in the below table:

                Same price and value Different price and value
Items that can be redeemed  Services (excluding tax) Services (excluding tax)
Products (excluding tax) Products (excluding tax)
Day Packages (excluding tax) Day Packages (excluding tax)
Series/custom packages (excluding tax) Series/custom packages (excluding tax)
Items that cannot be redeemed  Tips or gratuity applied to the invoice Tips or gratuity applied to the invoice
Purchase of other gift cards  Purchase of other gift cards
Memberships Memberships
Pre-paid cards Pre-paid cards

Note: The guest needs to separately pay for the tax component and/or any applicable tips or gratuity.

How to Redeem a Taxed Gift Card in POS?

 To redeem a taxed gift card in POS, follow the steps below:

  1. Launch the POS from the appointment book.
  2. In the guest details section at the top of the POS, enter either the mobile number, email address, first name, or last name of the guest, and select a matching record from the list of suggestions. If the guest record dos not exist in system, then create a new guest record.
  3. In the lower left pane of the POS screen, select the service or package and add it to the invoice.
    Note: If the service and package includes a tax component, then the item invoice shows the sum total (net price + tax) of the service or package selected.
    Example: Below is an example image of a taxed service.

  4. Select PRE-PAID/GIFT as the payment option in the Collect Payment section. 
    The sum total and any applicable tips (or gratuity) automatically populates in the Amount and Tips fields respectively.
    Note: A gift card sold with tax cannot be used to pay for the tax component of the purchased service or package, tips or gratuity.
    Example: Below is an example image of a taxed service.
    • If no tax or tips (or gratuity) is applicable to the invoice, then proceed to step 8 below.
  5. Edit the Amount field and replace the sum total with the net price amount (net price is the service/ or package amount before tax. Obtain this information from the invoice section in the POS).
  6. Delete the amount from the Tips (or Gratuity) field (if applicable). 
  7. Delete the amount from the Service Charge field (if applicable). Authentication may be required to edit this field. 
  8. Do one of the following:
    In the Card # field, enter the gift card number manually
    (Or)
    Click the gift card balance link beside the gift icon to select a gift card from the list of gift cards that the guest owns.
    Click the Use This link beside a gift card number and the card information automatically populates in the Card # field.
    Note: If the gift card numbers are masked, refer to section Gift card number is masked below.
  9. Click Add Payment.
    The payment is shown on the left side as pre-paid Card Redemption.

  10. The guest needs to pay any remaining service tax amount, tips and gratuity using another mode of payment. Choose the payment method to take any remaining payment.
    Note: The Collect Payment section reflects the pending amount.
  11. Close the invoice.

 

Gift card number is masked

Based on your organization settings and role permissions, only the last two digits of the gift card number is visible and the remainder of the gift card number is masked with an '*' .
If the number is masked, clicking the Use this link does not populate the card number, but opens a field for you enter the gift card number. In such cases, either the guest must provide the number, or you must contact a staff member who has permission to view the complete number (by default, the owner role has the permission enabled).
Note: If the guest or owner cannot provide the number, the gift card cannot be redeemed.  

Example:
The following image is an example of masked gift cards. Click the Use This link beside a gift card number.

A field to enter the card number appears.

Enter the complete card number in the field and click Apply.

The card information automatically appears in the Card # fields.

 

See Also:

Redeeming a Gift Card Online

Setting up Taxed Gift Cards

Masking Gift Card Numbers

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