The Gift Card Balance That May Never Be Spent
A Purchase Creates A Future Promise: When someone buys a store gift card, the merchant receives money before providing merchandise or services. The card represents a promise that the value can be used later. Until redemption, the company generally records an obligation rather than treating the entire sale as completed revenue. Some cards are used quickly, while others are forgotten, lost, or left with tiny balances. The portion expected to remain unredeemed is called breakage. It may involve a whole unused card or the few dollars remaining after a purchase that did not use the full value.