The holiday gift card season is here.
Each year, gift card sales go up by about 10% over the previous year. Ever wonder why the big restaurants have the promotion of purchase $100 gift card and receive an extra $20 gift card? Continue reading.
Over a billion dollars in gift cards have gone un-redeemed.
More than 10% of gift cards never get redeemed. That’s great for a retail store or restaurant. You get the cash, but don’t have the expense.
However, make sure you are following the gift card laws of your municipality. Even if not cashed, you have some legal obligations for un-redeemed gift cards.
For accounting purchases, a gift card is not counted as a sale until it is actually redeemed. The money you receive for selling a gift card becomes a liability until the gift card is exchanged for merchandise.
Nearly 85% of people between 25 to 34 years old are giving gift cards this year.
Only 40% of those over 65 will be giving gift cards. I’m in this group. Maybe that’s why I don’t like gift cards.
22% of those with a gift card make a purchase of an item that they would normally not purchase.
72% will spend more money in your business than the value of the gift card.
On average, gift card users spend 22% more money than the value of the gift card.
77% of all Americans have given out a gift card in the past year.
$25 is the most popular gift card denomination.
55% of those using gift cards need more than one trip to the store in order to redeem their gift card.
Read the statistics at: cardcash.com/gift-card-statistics
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