Posts Tagged ‘gift cards’

New Ruling: Gift Card Taxes

Thursday, January 13th, 2011

Posted By:  Rob Coon,  President of Dydacomp

The Internal Revenue Service announced last week that the sales of gift cards do not have to be counted as taxable income until they are redeemed even if they were sold through a subsidiary or franchise, or are issued as a refund for returned merchandise.

Previously the regulations regarding gift cards stated that income could be deferred as long  as the cards were redeemable with merchandise from the company that sold them. Problems arose because most retailers have subsidiaries that handle and sell gift cards; the IRS contended that the income is taxable upon the time the gift card was sold even if it was redeemed by another division in the company. The National Retail Federation argued that the income from gift cards still goes to the same company regardless of whether the cards are sold directly by the parent or through a subsidiary.

The deferral of taxable income on gift cards doesn’t affect retailers if the cards are redeemed in the same year they are purchase. However, the deferral can be a large factor in retailer’s tax liability when a card is sold in one year and no redeemed until the following year. This often happens during the holiday season. The IRS now says that gift card income can be deferred regardless of whether the cards are redeemed by the parent company, a subsidiary or a franchise.

Does this new ruling affect your business? How do you feel about this new ruling on when gift cards become taxable?

Check out further information on the National Retail Federation site.

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Posted in Ecommerce, Industry News | No Comments »

Get a Competitive Advantage with Gift Cards

Friday, May 28th, 2010

Posted by Michael Chichester, Dydacomp Payment Processing Team Leader

Michael Chichester, Dydacomp Payment ProcessingI was talking with the owner of a very successful sporting goods company the other day.  This company has been using Mail Order Manager for over 15 years – they are running M.O.M. Version 7i with 34 workstations, use SiteLINK for e commerce, and still produce a yearly catalog.  But success wasn’t always the case for this company – they had some lean times.  In fact, this guy was telling me they once went an entire month without an order.  Not 1 order.  So, I asked him how did he turn it around?  I was very curious how they went from a 1 person operation running part-time out of Mom and Dad’s basement to where they are now – a $2 million dollar a  year company with over 40 full time employees.

“It’s all about finding a competitive advantage.”

Those words struck me.  So simple, yet so profound.  So how do you find a competitive advantage in today’s marketplace? How about having your company’s own unique logo in a customer’s pocketbook or wallet?  Even better, how about having your company’s logo in a POTENTIAL NEW CUSTOMER’s pocketbook or wallet?

Welcome to the wonderful world of gift cards.

In M.O.M. 7, we now have the ability to allow you to sell gift cards.  And you can customize your cards!  Did you know:

  • 65% of those given a gift card last season say they typically spend more than the value of the card? (Source: Consumer Reports Holiday Shopping Poll, October 2009)
  • In the 2008 holiday season, gift card sales added up to $25 billion (Source:  ValuTech)
  • Over 50% of all shoppers purchase gift cards (Source:

Here’s a link to a webinar we recently completed on the upcoming Gift Card release.

So, if you are looking for that next big competitive advantage, look no further than gift cards.

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Posted in Payment Processing | No Comments »

Exciting News from Mail Order Manager

Monday, August 31st, 2009

Business pain is inevitable but we like to think suffering is optional. As that relates to PCI Data Security Standards, many of the changes you need to make to be compliant are already done for you in the Mail Order Manager 7i, which will greatly reduce the pain of implementing this mandatory program from the major credit card issuers.

But we didn’t stop there! Version 7i includes 15+ significant enhancements to Version 6 (which it is built on) including but not limited to:

  • Graphical and text on demand reporting (all customized by you)
  • Advanced Drop Shipping Module with EDI
  • Gift Cards
  • Detailed data transfer into QuickBooks
  • Mobile access from your iPhone, iPod Touch or other PDA
  • All of these enhancements were designed to help you more easily sell more and spend less running your business so that you get the maximum return on your Mail Order Manager investment.

    Get PCI compliant today with Version 7i and enjoy additional features like on demand reporting, advanced drop shipping, EDI, gift cards, more detailed data transferred to QuickBooks and access to Mail Order Manager from your iPhone.

    To show you some of these features in action, I’d like to invite you to a Mail Order Manager 7i Webinar. To see the available dates and times and to register, just visit your personal URL accessible from the Support page or call (800) 858-3666 and ask for Sales.

    We look forward to seeing you there and check out our general press release for Mail Order Manager 7i .

    John V. Healy

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    Posted in CEO, Dydacomp News | No Comments »