What Is a Promo Code on a Gift Card?

Gift cards and promotional codes are distinct financial tools. While both offer value, their functions and application can sometimes lead to confusion. This article clarifies what a promotional code associated with a gift card means and how these distinct financial instruments can be used during a purchase.

Defining Gift Cards and Promotional Codes

A gift card is a prepaid stored-value payment method, typically issued by a retailer or financial institution. It represents a specific monetary value for purchases within a particular store, a group of related businesses, or where major credit cards are accepted. Gift cards can be physical or digital codes, identified by a unique number. They allow the recipient to select items up to the card’s loaded value.

A promotional code, also known as a coupon or discount code, is an alphanumeric string that provides a discount or other benefit, reducing the total cost of a purchase. These codes offer incentives like a percentage off, a fixed dollar amount off, free shipping, or free items. Unlike a gift card, a promotional code does not hold stored monetary value; it modifies the transaction’s subtotal by applying a discount. Promotional codes often have specific conditions, such as minimum purchase requirements, expiration dates, or product limitations.

How Promotional Codes and Gift Cards Interact

A promotional code is not typically printed on a gift card. Gift cards are payment instruments, while promotional codes are discount mechanisms. Instead, a promotional code might be associated with or given alongside a gift card as part of a promotional offer. For example, a retailer might offer a bonus promotional code to a customer who purchases a gift card, such as “buy a $50 gift card, get a $10 promo code for your next purchase.”

Another scenario involves a general promotional code received through email, advertisement, or loyalty program. This code can be used on a purchase where a gift card is also applied as payment. The gift card’s stored value remains separate from the promotional code’s discount. When both are used, the promotional code applies its discount to the order’s subtotal first, reducing the amount due. The gift card balance then pays the remaining amount, ensuring the discount is calculated before the payment method is fully utilized.

Applying Both During a Purchase

Applying both a promotional code and a gift card involves distinct steps. For online transactions, the checkout process includes a field labeled “coupon code,” “discount code,” or “promo code” where the alphanumeric string is entered. This field is usually found on the shopping cart page or during the initial steps of the checkout flow. After entering the promotional code and applying it, the subtotal of the order should reflect the discount.

After applying the promotional code, enter the gift card details in the payment section of the checkout. This requires inputting the gift card number and, if applicable, a PIN. The gift card balance is then deducted from the new, discounted total. In a physical store, provide the promotional code to the cashier first to apply the discount. After processing the discount, present the gift card to cover the remaining balance. Most retailers allow combining a promotional code and a gift card, but it is helpful to verify the store’s policy if uncertain.