AP: Billions In Gift Cards Go Unspent Every Year

The Associated Press reports:

Gift cards get lost or forgotten, or recipients hang on to them for a special occasion. In a July survey, the consumer finance company Bankrate found that 47% of U.S. adults had at least one unspent gift card or voucher with an average value of $18. That’s a total of $23 billion.

Every year, big companies calculate “breakage,” which is the amount of gift card liability they believe won’t be redeemed based on historical averages. For some companies, like Seattle-based Starbucks, breakage is a huge profit-driver. Starbucks reported $212 million in revenue from breakage in 2022.

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The secret life of gift cards: Here’s what happens to the billions that go unspent each year https://t.co/zPh7NWlYfZ

— The Associated Press (@AP) December 25, 2023