Using "Other Gift Card or Certificate" is double counting sales/profits

amtheesti — Sat, 20 Sep 2025 20:16:48 GMT

At my business I currently use paper gift cards as the Square plastic gift cards do not make financial sense for me at this time. When I sell them, I have an item in inventory "Gift Card" with different amounts that is used to charge the customer.

When the receiver of the gift card comes in for a product or service and redeems the gift card, I use the "Other Gift Card or Certificate" option within Square POS to log the same. Up to this point everything functions as it should - however, when the transaction is closed out using "Other Gift Card or Certificate" it logs this as income/profit and shows up on my sales reports.

By its very nature a gift card is a no-profit tender. The income was recognized at purchase of the gift card, not at redemption of the gift card. So what I need to know is, is the "Other Gift Card or Certificate" option doing this in error and needs to be fixed? Or is this option functioning as designed and I need to stop using it? Having it log double income which means double taxation is a problem.

I'd love it if this could be fixed, or if there was a switch we could use to tell the software "don't log this as income". Otherwise my options are use a discount code to zero out each transaction, or run the reports and remember to edit them for my accountant each time.

Please see the attached screenshots for clarity.

Re: Using "Other Gift Card or Certificate" is double counting sales/profits

Gold — Tue, 17 Jan 2023 18:15:05 GMT

HI, hopefully this previous Community Discussion will help.

https://www.sellercommunity.com/t5/Questions-How-To/Can-I-use-third-party-gift-cards-with-Square/m-p/60026#:~:text=You%20can%20use%20any%20kind,Settings%20%3E%20Checkout%20%3E%20Payment%20types.

The Square platform is designed to work with their Square eGift Cards or Square physical gift cards. Using 3rd party cards need to be tracked manually.

thread Re: Using "Other Gift Card or Certificate" is double counting sales/profits in Payments Troubleshooting

Using "Other Gift Card or Certificate" is double counting sales/profits

Re: Using "Other Gift Card or Certificate" is double counting sales/profits