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    This individual Note License to Spend: Going Beyond Breakage and Getting the Maximum Benefits from Gift Cardsis available for purchase. This Note is available to members of Mercator Advisory Group’s Prepaid Advisory Service. Please be advised that this Note is normally part of a research and advisory service that provides ongoing support throughout the year. As such, this Note contains significant depth of content that is selected for its strategic importance to our members. (For a description of these services, see our Advisory Services section).

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License to Spend: Going Beyond Breakage and Getting the Maximum Benefits from Gift Cards

Retailer thinking about the gift card business model is broken. Nearly every large retailer in the United States sells gift cards with the thought that, one way or another, the card will be spent, and they will eventually collect the money associated with those cards. But they view that money associated with the cards primarily as an accounting liability, rather than as seeds for future sales.