Comparing corporate gift checks, gift certificates and gift cards

gift-check-handed-to-employeeGift Checks vs. Gift Certificates

The terms gift check, gift certificate, and gift voucher are sometimes used interchangeably, but the recipient experience can be very different depending on the program. 

A traditional grocery gift certificate may be limited to a particular item or a small selection of products. For example, a certificate might be intended specifically for a turkey or ham. If the selected item costs less than the certificate’s value, the recipient may not be able to use the remaining amount. 

A flexible gift check program can provide a broader purchasing experience. Instead of telling recipients exactly what to buy, it allows them to select eligible products based on their own preferences and use the gift’s full value. Holiday Gift Checks are an example of a grocery-focused gift check designed around recipient choice. Rather than limiting the recipient to one specific holiday food or specific brand, the program allows recipients to select their favorite eligible holiday foods and use the entire gift amount toward their purchase. That flexibility can make the gift more valuable to the recipient because they can choose what works best for their family and holiday celebration. An additional benefit is a guaranteed return option offered to provide added assurance for businesses purchasing Holiday Gift Checks.  

Visit Holiday Gift Checks to learn more about the program. 

Gift Check vs. Gift Card

Gift checks and gift cards both provide prepaid value, but they can serve different purposes.

Feature        Gift Check            Generic Gift Card 
Prepaid value  Yes  Yes 
Typical format   Paper business check   Plastic or digital card 
Fees  Nominal (usually less than $1.00)  Generally high fees
Employee recognition  Common Common
Grocery-focused programs  Yes  Varies 
Corporate bulk ordering  Designed for bulk    Varies 
Recipient choice   Depends on program   Depends on issuer 
Holiday-specific programs   Yes   More Generic 
Taxable  *Usually not taxed *Yes/cash equivalent
Personalize  Yes-logo & message Special Cards

 

*Gift Checks are usually limited to food gifts and are restricted to amounts up to $50. Additional restrictions, such as making Holiday Gift Checks nonredeemable for cash, can help limit them from being considered cash equivalents. Gift cards are cash equivalent and are taxable. Companies should consult their tax professionals for guidance. 

Organizations should determine their goals, gift budget, their recipients, program flexibility, and program personalization. One example of a personalized gift check is Holiday Gift Check Program. Companies can add their logo and add their own personalized holiday message to the gift check. Employee names can be added for 10 cents/gift check. Another option is to choose professional pre-crafted messages including holiday messages. There are no additional fees for customizations. Visit: www.giftcheckprogram.com 

Benefits of a Flexible Gift Check

A well-designed gift check program can offer advantages to both businesses and recipients. 

For Businesses 

  • Easy to order and distribute. 
  • Available in multiple denominations 
  • Suitable for large employee groups-redeemable nationwide 
  • Can support customized recognition programs. 
  • Provides a practical alternative to physical gifts. 
  • Ideal for seasonal and year-round incentives. 

For Recipients

  • Provides real purchasing value. 
  • Allows recipients to choose what they need or want. 
  • It can be used toward every day or holiday purchases. 
  • Can help offset seasonal food expenses. 
  • A gift check program such as www.giftcheckprogram.com can allow recipients to spend the entire gift amount.  

For holiday gifts, giving recipients the freedom to choose their favorite foods can make the gift more personal and useful than a one-size-fits-all food item or physical gift.