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Discussion Starter · #1 ·
I found this article interesting when trying to determine how much was spent in the month of December by consumers.

http://money.cnn.com/2007/12/25/new...ping_tuesday/index.htm?postversion=2007122520

The interesting part: Gift cards do not count. They are only counted when redeemed. I believe, though not sure, is that it is not counted, as the consumer has not purchase an item with the money; thus, the item remains in the company's inventory. Does anyone know for sure?
 

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My retail experience tells me that gift cards do not count towards sales until they're redeemed...
 

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Correct. Same as the old gift certificates. When you get a gift card, you've just exchanged your dollar, not spent it. This is part of the reason retailers try to add a monthly service fee after so many months of non-use or use an expiration date (both of which are horrible practices IMO).

Until they access or 'use' the money on the card, it can't be counted into the bottom line.
 

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Discussion Starter · #4 ·
Scott:

Some states have put laws in place that prohibit that now. Not sure about Georgia; but, in MA, I think people have 7 years before the fees/expiration kick in.
 

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Scott:

Some states have put laws in place that prohibit that now. Not sure about Georgia; but, in MA, I think people have 7 years before the fees/expiration kick in.
yea, many states have done that (thought I don't think Ga. has), and some (like California) prohibit any fees or expiration ever. I agree 100% with that... Also, I think some stores (like 'Wally World') have realized it's bad PR, and now advertize "no fees, no expiration" on their cards..... But, they still can't count it until it's used....
 
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