I work in the IT department for a company that provides gift card services for various businesses. I can offer these insights related to previous comments.
Accountants have to deal with the liability of unused gift card balances, and seek to get unused balances of inactive cards off the books.
Laws regarding removing value from gift cards vary from state to state. Some states allow a periodic “non usage fee.” In some cases, we set up an all-at-once “expire balance to zero if not used in five years” plan. It’s up to our clients to be familiar with the laws in their state.
Some states declare unused balances of inactive cards to belong to that state, and we help those clients with identifying those cards, and writing off the balances.
And yes, there is a massive amount of money that is either left over (not used to zero), or never even used once.
I work in the IT department for a company that provides gift card services for various businesses. I can offer these insights related to previous comments.
Accountants have to deal with the liability of unused gift card balances, and seek to get unused balances of inactive cards off the books.
Laws regarding removing value from gift cards vary from state to state. Some states allow a periodic “non usage fee.” In some cases, we set up an all-at-once “expire balance to zero if not used in five years” plan. It’s up to our clients to be familiar with the laws in their state.
Some states declare unused balances of inactive cards to belong to that state, and we help those clients with identifying those cards, and writing off the balances.
And yes, there is a massive amount of money that is either left over (not used to zero), or never even used once.