Breakage

Breakage
Revenue gained by retailers through unredeemed, expired or lost gift cards. Breakage refers to money received from gift cards but never redemeed by customers. In 2006 it was estimated that consumers lost over $8 billion annually due to breakage. Most retailers no longer place restrictions (i.e. dormancy fees, expiration dates, etc.) on their gift cards to eliminate the accounting uncertainty they create.

In 2007 the FTC settled a case it brought against Darden Restaurants for failure to disclose its gift cards dormancy fees and reached the same outcome in similar action it filed against Kmart. The rulings required both companies to reimburse customers who lost money due to the inadequately disclosed gift card fees.


Investment dictionary. . 2012.

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  • breakage — UK US /ˈbreɪkɪdʒ/ noun ► [U] the fact of something getting broken: »Most standard insurance policies do not cover breakage. ► [C, usually plural] something that has been broken: »Any breakages must be paid for …   Financial and business terms

  • Breakage — Break age, n. 1. The act of breaking; a break; a breaking; also, articles broken. [1913 Webster] 2. An allowance or compensation for things broken accidentally, as in transportation or use. [1913 Webster] …   The Collaborative International Dictionary of English

  • breakage — index injury Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • breakage — (n.) 1813, action of breaking, from BREAK (Cf. break) (v.) + AGE (Cf. age). Meaning loss or damage done by breaking is from 1848 …   Etymology dictionary

  • breakage — ► NOUN 1) the action of breaking something or the fact of being broken. 2) a thing that has been broken …   English terms dictionary

  • breakage — [brāk′ij΄] n. 1. an act or instance of breaking 2. things or quantity broken 3. loss or damage due to breaking 4. the sum allowed for such loss or damage …   English World dictionary

  • Breakage — Chartplatzierungen (vorläufig) Vorlage:Infobox Chartplatzierungen/Wartung/vorläufige Chartplatzierung Erklärung der Daten Singles Fighting Fire (ft. Jess Mills) …   Deutsch Wikipedia

  • breakage — [[t]bre͟ɪkɪʤ[/t]] breakages 1) N VAR Breakage is the act of breaking something. Brushing wet hair can cause stretching and breakage... Check that your insurance policy covers breakages and damage during removals. 2) N COUNT: usu pl A breakage is… …   English dictionary

  • breakage — UK [ˈbreɪkɪdʒ] / US noun Word forms breakage : singular breakage plural breakages a) [uncountable] an act of breaking something b) [countable] something that someone breaks All breakages must be paid for …   English dictionary

  • breakage — An item of loss or damages, as breakage in transit; an inevitable loss over a period of time in some lines of business, such as hotels, restaurants, electric companies, etc. As the word is used in a bill of lading exempting the carrier for loss… …   Ballentine's law dictionary

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