Question

The point in time when gift cards expire or when it becomes unlikely that customers will redeem them is known as __________.

Answer 1

The point in time when gift cards expire or become unlikely to be redeemed is known as the breakage period in the business world.

Step-by-step explanation:

The point in time when gift cards expire or when it becomes unlikely that customers will redeem them is known as the breakage period.

This is a common term used in the business world, especially in the retail industry. Gift cards are often sold with expiration dates, and if customers fail to redeem them before the expiration, the value of the cards remains with the retailer.

For example, let's say a customer purchases a gift card with a $50 value from a clothing store but never uses it. After a certain period of time, typically a year or two, the store may consider that gift card as part of their revenue because it is unlikely to be redeemed. This is called breakage.