Originally Posted by
icurhere2
Understand "generate cash" and there's a fair percentage of expiring certificates that are never redeemed. However, the sales of gift certificates doesn't reflect as sales or revenue - they are cash flow but a liability until redeemed or expired. Once redeemed, they become revenue / sales.
Sure it's a liability on the books (until it's decided what % will never be redeemed), but there's a reason companies push their GC's so hard. It improves free cash flow and locks the customer into a transaction with the company.