Gift Card / Stored-Value Liability

This is the rollforward of stored value you owe Patrons: opening balance, loads, redemptions, and closing balance.

Worked example (one month):
Opening liability $4,250.00 + loads $1,900.00 − redeemed on purchases $1,640.00 = closing liability $4,510.00.

• Loads are never revenue — cash comes in, and the liability goes up.
• A redemption is a payment method — the underlying sale is recognized normally, with tax, and the liability goes down.

A memo line flags any balances aged beyond 24 months for escheat review.

This closing liability is the same number as Total Outstanding Balance on your Marketing Loyalty Balance page — one figure, shown two ways.

FAQ

When do I recognize revenue on a gift card?
When the balance is actually spent on a purchase — never when it's loaded. The sale at redemption carries its normal sales tax.