Gift Card Refund Liability
Gift cards feel like cash in the bank — but on closing they are the opposite: a liability you owe customers. Enter outstanding cards, deposits, and credits to see the total you must honor or remit under state escheat law.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Your Customer Liability
Total Refund Liability
* Estimate from your inputs. Escheat rules vary widely by state; this is not legal advice. Verify your state’s unclaimed-property requirements.
What This Tool Shows
Three Liability Types
Unused gift cards, unearned deposits, and store credit — each a claim on close.
Total Owed
One number for the customer liability to plan refunds around.
Escheat Note
Flags that abandoned balances follow state unclaimed-property law.
Print-Ready
Document the refund log for your records and the state.
Authoritative References
- State unclaimed-property (escheat) statutes and gift-card exemption summaries (retrieved 2026-08-13).
- Bankruptcy-treatment-of-gift-cards analyses — unredeemed cards as unsecured claims.
Estimates only. Escheat rules vary widely by state; this is not legal advice. Verify your state’s requirements.
Gift Card FAQs
You must honor them while you can or refund the balance. If you cannot, the unclaimed balance generally falls under your state’s escheat (unclaimed-property) law, which varies. In bankruptcy, unredeemed cards are typically unsecured claims.
Same principle — an unearned deposit or credit is a liability. Plan to refund or transfer it (e.g., to a successor) and keep a refund log to avoid later disputes.
No — many states prohibit expiry on gift cards or require escheat of abandoned balances. Letting them "expire" can create a state liability and customer complaints.