why do gift cards have expiration dates?

Question

i mean it is just like money, right? it should last forever (or atleast untill currency change) but they shoulden't expire.

thoughts?

Answer 1

THEY MAKE MONEY IF YOU DON'T USE IT, I AGREE IT SHOULD LAST FOREVER.

Answer 2

Actually, stores are not allowed to count the sale of gift cards as income until the card is redeemed for merchandise. They want to get you to come in and use the card, and most of the time when people do use their gift cards, they end up spending over the amount on the card. Expiration dates give people a reason to get to the store and redeem the card.

Answer 3

They have expiration dates because companies want to get the liabilities off of their books. A gift card is a liability, the company must have a reserve to offset this liability (assets=liabilities). I know it doesn't seem fair, but it's meerly an accounting entry. (they don't record the sale on giftcards, only when the giftcards are redeemed, expired giftcards would go under "other income")

Answer 4

Some places don't have expiration dates, but most do. Do you have any idea the amount of 'free' revenue companies collect from unused gift cards? It's HUGE! So they give up nothing and get your $$ at the same time.

Answer 5

because the company it belongs to needs to be able to balance their accounting books and if a gift card has change left on it and it is thrown away then it is like the company loses that money and it becomes no one's. put thousands of giftcards with 89 cents left together and it could be money that the company could use.

Answer 6

I Guess They Update Their Love Quotes, Upon Expiry Date??

Answer 7

i saw on the news once that 33% of gift cards go unredeemed! it's so they can make money off u.

Answer 8

CATCH 22.

So they get the money and you get nothing.

Welcome to the world of business..
How do you think they get rich!!