Gift cards have a unique value proposition: there's no other product that a merchant can buy for less than $1 and sell for hundreds of dollars. A gift card system will still require you to invest some time and money to achieve the value, but the potential for strong ROI makes it an attractive consideration. See actual prices for Gift Card System paid by other BuyerZone users.

In five to seven days, you can get started with a basic gift card system for as little as $150 to $200. This includes 100 gift cards with your company name on them, cardholders, and a display rack for your counter, and software installation through your credit card terminal. This is a good way to get familiar with the program, but isn’t ideal if you will work with gift cards regularly.

Experienced gift card companies will also exhibit fair business practices. You shouldn't do business with gift card companies that offers programs that only work with their payment processing equipment. If you do, switching to a new payment processor later can cause problems for your existing customer accounts. You may even have to start a new gift card program from scratch. Look for a gift card system and payment processing equipment that is compatible with multiple gift card companies.

For larger orders, gift card companies typically offer volume discounts. The average gift card order for a small business is 500 to 1,000 cards at about 75 cents each. Many gift card companies also include additional marketing materials with larger orders such as custom displays, detailed design work, and even promotional products like buttons, posters, and table tents.

Gift card software for PCs can cost $300 to $400 for each location. Gift card companies can also provide customized software for larger merchants at an additional cost. If you plan to use your existing credit card terminals to process gift cards, expect to pay a one-time software installation fee of $50 to $75 per location.

If you want a custom-designed card, expect to pay $75 to $100 per hour for a designer. One way to save money is by designing your cards in-house. Enhanced customization options, such as detailed graphics or die cut card shapes, can take up to three to four weeks.

A big factor in your costs will be the transaction fees for each gift card that you activate. These fees can range from 10 to 75 cents for each transaction depending on the number of cards you buy and the gift card program you use. For gift cards, you pay either a higher activation fee for unlimited transactions, or smaller fees each time a customer uses the card. For loyalty and membership programs, you typically pay a single fee at the time of activation.

To process transactions and maintain your program, vendors require a one- to three-year contract at $25 to $35 per month. These costs cover reporting and fraud monitoring of your gift cards as well as customer support. Although gift card systems are relatively easy to operate, vendors can provide hands-on training for you and your staff. Expect to pay $150 to $300 for a conference call or live training session.

If you don't already own a credit card terminal, you can find reliable refurbished terminals for as low as $200. You can also rent terminals for $15 to $20 per month. Your gift card system provider may be able to suggest a terminal vendor who may provide a discount as well. Read more about Credit Card Terminals.