Gift cards feel like cash in the bank — but on closing they are the opposite: a liability you owe customers. Mishandle them and you create state escheat obligations and angry former customers. Here is the clean way.
What counts as a closing liability
- Unused gift cards — the single most common overlooked balance.
- Unearned deposits — for orders, events, memberships not yet delivered.
- Store credit / returns credit — issued but not yet spent.
The two rule sets
| Path | What applies |
|---|---|
| Orderly close | Honor or refund; remit abandoned balances per state escheat law (varies widely) |
| Bankruptcy | Unredeemed cards are generally unsecured claims against the estate |
Clean play: announce a last-redemption window, then refund any remaining balances, and remit truly abandoned amounts to your state’s unclaimed-property office. Keep the refund log — it is your defense if a customer later disputes.
Sources: state unclaimed-property (escheat) statutes, gift-card exemption summaries, bankruptcy-treatment-of-gift-cards analyses. Retrieved 2026-08-13. State rules vary widely; verify yours.