A method of redeeming a gift card having an associated programmed monetary value and incentivizing a user to purchase goods and services in an amount exceeding the programmed monetary value includes reading the identity of the gift card presented by a user and associating the gift card with a stored monetary card balance. The purchase amount of the user's desired purchase is determined and then compared with the associated card balance. A balance owing in excess of said associated card balance is calculated and the balance is then discounted by a predetermined percentage. Finally, payment from the user of the discounted balance owing is received. The system can include a registry to enable multiple subsequent discounts for a predetermined number of discounts during future purchases through the merchant or merchants.