Gift Card Printing Costs for Businesses Explained

What Are the Costs Associated with Gift Card Printing?

If you’re running a business, gift cards for business can be a powerful tool in your marketing strategy. They encourage repeat customers, increase brand visibility, and can even bring in new customers. But before you get started with card printing, it’s important to understand what goes into the process and, more importantly, the costs involved.

The value of a gift card goes beyond just being a convenient payment option. It becomes part of your brand identity. Many businesses overlook the full scope of what’s needed to produce quality gift cards. The price can quickly escalate depending on your specific needs. 

What Is Gift Card Printing?

Gift card printing refers to the process of creating physical gift cards that customers can use for purchases at your business. These cards can be preloaded with a set dollar amount, which can then be redeemed for goods or services.

While digital gift cards are becoming increasingly popular, gift card printing remains a staple for businesses. It allows them to offer a tangible product that customers can physically handle, give as a gift, or keep in their wallets.

Costs Involved in Card Printing

When it comes to card printing, there are several cost components to consider. These range from design and setup fees to the materials used and the quantity of cards ordered. Each of these factors contributes to the overall expense of producing your gift cards.

1. Initial Setup Costs

Before the physical printing can begin, there are setup fees involved. These fees cover the design, preparation, and customization of the cards. If you don’t already have a design in mind, you might need to hire a designer, which can add additional costs. Here’s a breakdown:

• Design Fees: If you choose to hire a graphic designer, this will be an additional cost. Simple designs might cost $100-$300, while more elaborate, custom designs can go up to $1,000 or more.
  
  

• Setup Fees: These fees generally cover the cost of preparing the artwork and templates for printing. Setup fees usually range from $50 to $150, depending on the complexity and printing service.

While these are one-time fees, they should be factored into your total costs, especially if you’re looking to order gift cards for business in large quantities.

2. Material Costs

The type of material used for printing your gift cards significantly impacts the cost. You can choose from various options, such as paper or plastic. Plastic gift card printing is more expensive due to its durability, but it offers several benefits, including a premium feel and longer lifespan.

• Plastic Gift Cards: These cards are more durable, often featuring glossy or matte finishes, and can withstand more wear and tear. On average, plastic cards cost between $0.30 and $0.75 per card, depending on the design and quantity ordered.
  
  

• Paper Gift Cards: If you're on a budget, paper gift cards are a more affordable option, usually costing between $0.10 and $0.30 per card. However, paper cards are less durable and can become damaged more easily.

The choice of material is often determined by your business’s goals. If you want to give your customers a long-lasting, high-quality gift, plastic may be worth the extra investment. If you’re just starting out or running a short-term promotion, paper cards might be sufficient.

3. Volume and Order Size

The quantity of cards you order will directly influence the cost per card. The more cards you order, the cheaper each one becomes. Most printing services offer bulk discounts, so if you're confident that you’ll need a large number of gift cards, ordering in bulk can significantly lower your per-unit cost.

For example:

• A small order of 500 cards could cost around $2 per card.

• A large order of 5,000 cards could lower the cost to $1 per card.

If you’re running a special promotion or only plan to offer gift cards during certain times of the year, you may want to calculate whether it’s worth ordering in bulk to take advantage of the discounts.

The Costs of Plastic Gift Card Printing

Now let’s focus specifically on the costs associated with card printing. These cards offer numerous advantages, including greater durability and a more premium feel. However, the cost of plastic card printing is generally higher than paper cards due to the materials used and the customization options available.

1. Why Choose Plastic?

Many businesses opt for gift cards because of their long-lasting durability. Plastic cards hold up better over time compared to paper, which can wear out quickly, especially when kept in wallets or purses.

Plastic gift cards are also perceived as higher value, which can enhance your brand's image. When customers receive a plastic gift card, they’re more likely to perceive it as a premium product, which could increase customer loyalty and drive more sales.

2. Additional Features That Impact Cost

There are several additional features you can add to plastic gift card printing that will increase the overall cost. Here are some of the most popular options:

• Magnetic Strips: Adding a magnetic strip allows your card to store information electronically, such as the balance available on the card. This feature typically adds $0.10 to $0.20 per card.
  
  

• Holograms: A holographic design adds a premium touch and can enhance security by making the card harder to duplicate. This could increase costs by $0.20 to $0.50 per card.
  
  

• Embossing: Embossed text or logos, while offering a tactile experience, will also raise the production costs by about $0.20 to $0.50 per card.
  
  

• RFID/NFC Technology: Adding RFID or NFC chips allows for contactless payments, but the cost of embedding these chips into the cards can increase the price by $0.30 to $0.60 per card.

While these features increase the overall cost, they can add value by making your cards more functional, secure, or unique, depending on the features you choose.

3. Activation Fees and Maintenance

In addition to the upfront costs of printing, many printing companies charge activation fees. These are small fees for every card activated in the system, typically ranging from $0.05 to $0.20 per card.

There are also maintenance costs associated with keeping track of the gift card program. These include managing balances, processing customer inquiries, and handling lost or damaged cards. If you run a large-scale gift card program, these operational costs can add up.

Shipping and Delivery Costs

Once your gift cards are printed, you’ll need to factor in shipping and delivery charges. Shipping costs can vary based on the provider, order size, and delivery speed. If you opt for faster shipping, it will cost more, but it may be necessary for time-sensitive promotions.

Here’s an overview of shipping costs to keep in mind:

• Standard Shipping: Usually included in the price for large orders, but smaller orders may incur a shipping fee of $10 to $50.
  
  

• Expedited Shipping: If you need the cards in a hurry, expedited shipping will likely cost between $30 to $100, depending on the size of the order and your location.

Be sure to clarify the shipping costs with your printing provider before placing your order to ensure there are no hidden fees.

Ongoing Costs Associated with Cards

Once your gift cards are in circulation, you’ll face some ongoing costs. These include transaction fees, customer support, and potentially even costs for replacing lost or damaged cards.

1. Payment Processing Fees

When a customer redeems a gift card, a transaction fee is typically applied by your payment processor. These fees vary but are generally between 1.5% to 3% of the transaction amount. Over time, especially if you offer a large number of gift cards, these fees can add up.

2. Customer Support

You may encounter customer service issues, such as customers losing their cards or having difficulty checking their balance. Providing support for gift card-related inquiries can incur additional costs for your business. This includes costs related to handling lost cards, answering queries, and troubleshooting problems.

How to Maximize Your Gift Card Investment

To get the most out of your gift card investment, consider both short-term and long-term strategies. Planning ahead and ordering in bulk can significantly reduce costs, while offering digital gift cards can provide a budget-friendly alternative with minimal overhead.

1. Smart Planning

To maximize the effectiveness of your printing investment, consider planning ahead. Ordering cards in bulk can help reduce the unit cost, and you’ll be able to spread your investment over time. Additionally, if you know your business will be running promotions or holiday sales, ordering ahead can help you avoid last-minute rush orders, which often incur higher prices.

2. Consider Digital Gift Cards

If the upfront costs of physical cards are too high, you can consider offering digital gift cards. These cards are cheaper to produce and don’t involve shipping costs, making them an attractive option for businesses that want to offer gift cards but don’t want the high production costs of plastic cards.

Digital gift cards are also faster to implement, as there’s no need to wait for printing and shipping. They can be easily integrated into your website or POS system and used immediately, providing a seamless experience for both you and your customers.

Your Call. Your Card

The costs associated with card printing are multifaceted, involving not only the materials and features you select but also the volume you order. Plastic card printing offers a premium option, but it comes at a higher cost. By understanding these costs and planning accordingly, you can ensure that your gift card program is both cost-effective and successful.

Tired of flimsy, forgettable cards? DuraCard gives your brand the edge with high-quality plastic gift card printing that actually lasts. If you're investing in gift cards for business, make sure they're built to impress.