Gift Card Programs Could Leave Retailers With a Holiday Hangover

Gift cards are a staple of the holiday season, giving retailers opportunities to boost sales, build brand loyalty, and attract new customers.

But gift cards also pose potential risks to businesses unfamiliar with the patchwork of state laws on unclaimed property. States generally require the value of the abandoned assets—uncashed checks, dormant savings accounts, and unused gift cards—to escheat, or be handed over to the state. For some states, like Delaware and New York, the billions of dollars in unclaimed assets on corporate balance sheets have become a tempting source of revenue and an offset for tax collections. State escheatment ...