Digimarc, one of the pioneers in the development and deployment of digital-identity and authentication technologies, has unveiled a partnership with Zebra Technologies-a market leader within retail scanning and in-store automation-to introduce a new “digital security layer” into gift cards. The aim is to dramatically reduce gift card fraud at checkout, improving both security and the shopping experience.
Under the agreement, Zebra’s line of handheld imagers – including the DS8100 handheld scanner and MP7000 multi-plane scanners – will become the first to support Digimarc’s gift-card protection software. When a gift card is scanned at point of sale, the scanner will automatically detect if the card has been tampered with and prevent activation if any irregularities are detected. By contrast, traditional “card-only” security approaches tend to be far more susceptible to fraud.
According to Digimarc, this end-to-end solution is more than three times more secure than traditional gift-card packaging or foil-based security measures. It also eliminates the need to have cashiers visually inspect or unwrap cards, smoothing checkout and minimizing friction for both staff and consumers.
Early results are promising in a first-in-store rollout with a grocery retailer using Zebra scanners across all store locations: zero incidents of fraud, faster card scanning, simpler cashiers’ workflows, and noticeably improved checkout speeds. Zebra intends to expand the newest version of the Digimarc software across its full retail-scanner portfolio, starting early 2026.
Why This Matters to the Retail Industry
A Real Step Forward Against Gift Card Fraud
Gift cards are an ubiquitous retail instrument-popular for holidays, promotions, loyalty, and gifts. But they’ve also historically been a high-risk target for fraud and theft. The new Digimarc + Zebra solution addresses this directly at the point of sale. By embedding secure, machine-verifiable watermarks into physical cards-and verifying them via scanners-retailers add a robust, automated layer of fraud prevention that is significantly harder to bypass than foil seals or barcodes.
Considering traditional methods usually involve human inspection or some simple packaging tricks, such an increase in security level could drastically cut down on losses, chargebacks, and operational overheads linked to investigations into fraud.
Better Checkout Experience: Faster, Smoother, Safer
Beyond security, the integration offers several operational benefits. Because scanners automatically validate gift cards, cashiers no longer have to unwrap or inspect packaging manually, which cuts checkout time and accelerates customer flow, ultimately lowering labor burdens. According to Digimarc, stores saw improved “items per minute” or IPM, in checkout lanes after deploying the solution.
Quick, smooth checkouts boost customer satisfaction, especially during busy times like holidays. They also help stores handle more shoppers without needing extra staff.
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Financial & Reputation Protection for Retailers
Fraud costs more than money; it harms consumer trust. Frequent gift-card scams shake confidence in brands. This may lead customers to avoid using gift cards altogether. Retailers can boost trust by taking steps to prevent fraud. By using Digimarc + Zebra technology, they can ensure secure and traceable transactions. This protects brand integrity and helps avoid legal or chargeback issues.
Laying the Foundation for Smarter, Secure Retail Environments
The Digimarc-Zebra partnership marks a big shift. Retail operations are changing from basic point-of-sale systems to smart, integrated solutions. These systems mix security, automation, and convenience. Retailers can improve quality, safety, and efficiency by using advanced tech tools. Scanners, automated checkouts, and digital ID verification help achieve this. This may force the entire retail industry toward operations that are smarter, more secure, and scalable.
What This Means for Retail Businesses & Stakeholders
Retailers & Store Chains – Early adopters of Digimarc + Zebra scanners are most likely to benefit from reduced shrinkage and fraud losses, as well as lower costs related to gift-card fraud. Faster checkouts will improve throughput and customer satisfaction during high-traffic periods.
Gift-Card Issuers & Brands – Brands that use gift cards can better protect their gift-card ecosystem against fraudsters – activation, resale, and redemption – which helps preserve revenue and consumer trust.
POS/Checkout Hardware Providers: Scanners and POS hardware that can support secure watermark-based verification will see an increased demand. The provider will have to integrate such security software in order to stay competitive.
Consumers enjoy safer transactions, lower fraud risks, and smoother checkouts. This boosts their confidence in using gift cards and shopping.
Loss-Prevention and Risk-Management Teams: Automated fraud detection at checkout helps risk teams shift from reacting to problems to preventing them. This saves time, cuts costs, and reduces manual tasks.
Challenges & Considerations
While promising, the rollout also raises some practical considerations:
Adoption and Compatibility: Retailers have to upgrade or change the existing scanners / POS systems to support the new Digimarc-enabled software. For small stores or legacy systems, this will require capital investment.
Training and Process Change: Store staff will need to adjust to new checkout processes; while automated, workflows might change in ways that require training and change-management.
Coverage & Ecosystem Scale: For this to be truly effective, gift-card producers and retailers, along with POS vendors across regions, will have to adopt the new standard. In isolation, this will allow fraud via non-protected cards.
Cost versus Benefit: For retailers with low gift-card volumes, the cost of upgrading scanners may outweigh the expected fraud-prevention benefits. Any business case must be carefully evaluated.
Conclusion
The Digimarc–Zebra partnership might transform gift-card fraud and checkout security in retail. Digital watermarking and real-time scanner verification help retailers reduce theft. This mix improves efficiency and makes the in-store experience better for staff and customers.
This could become a new standard for issuing and redeeming gift cards. As more major retail chains adopt it, smaller and medium-sized stores may follow. The integration could eventually include items other than gift cards that have high fraud risks, like pre-paid vouchers, mobile top-ups, and loyalty cards, which will make retail settings more secure and trustful.