Gift cards are stored value cards that your customers purchase from you with an assigned value at point of purchase, and redeem at your business. They are also useful for issuing store credits for returned merchandise.
Loyalty can be as simple as a punch-card type of program where, for instance, 10 cups of coffee buys your next cup free or a points-for-dollars program where $1 equals one point. Gift, or in this case, loyalty cards are also a popular way to reward customers for choosing to do business with you. You can motivate them to return by giving them a percentage back on their card for purchases made each time - never letting the card expire or lose value. This is the loyalty component. Customers express loyalty (a positive attitude built up over a series of interactions with you) with their wallets.
The best news? Through ProfitPoint, Inc., gift and loyalty programs run on the same card and are monitored individually for easy reporting!