1. Gift cards cost less than the gift.
   Gift cards are easier to carry.
2. Gift cards provide the recipient with more options.

When you're not sure what someone wants, but you know where they usually shop, a gift card can be the perfect solution.

1. 10 percent
   25 percent
2. 50 percent

Approximately one in four Americans polled referred to gift cards as "thoughtless presents."

1. 1972
   1982
2. 1992

Reuters reports that the gift card industry started really taking off in 1992.

1. 25 percent
   55 percent
2. 75 percent

Over half of those polled have reported wanting a gift card.

1. nearly $1 billion
   nearly $10 billion
2. nearly $100 billion

As of 2008, the national expenditure on gift cards was nearly $97 billion!

1. A target market is the demographic from which the seller is likely to achieve the greatest number of sales.
   The individuals who most often purchase gift cards are known as the target market.
2. Target market refers to a chain of retail stores.

A target market is the demographic that sellers are trying to attract to their product.

1. open loop and closed loop
   prime and sub-prime
2. holiday season and standard

Open loop gift cards offer greater flexibility, as they can be used at various locations. They also usually have expiration dates. Closed loop credit cards must be used at a particular location, but usually do not expire.

1. federal
   state
2. municipal

Because open loop gift cards are sold by banks and credit card companies, they are subject to federal oversight.

1. A dormancy fee is a 10 percent kick back to the card manufacturer.
   A dormancy fee is a reduction in the value of the card the longer the card isn't used.
2. A dormancy fee is federal tax levied against gift card purchases.

Some cards lose value the longer they go unused. This is known as a dormancy fee.

1. within a week
   within a month
2. within a year

Statistics show that if you don't use a gift card within a month of receiving it, you're far less likely to ever use it.

1. one tenth
   one third
2. one half

Only one third of Americans claim their gift cards within 30 days.

1. 15 to 40 cents on the dollar
   30 to 60 cents on the dollar
2. 50 to 75 cents on the dollar

When people do use their gift cards they tend to spend 15 to 40 percent more than the value of the card.

1. Breakage refers to cards rendered unusable because the magnetic strip has been erased.
   Breakage refers to the profits a company makes from the sale of unclaimed gift cards.
2. Breakage is a tax on all profits stemming from the sale of gift cards.

The term breakage refers to the amount of money a company profits from unclaimed gift cards.

1. 3 to 5 percent
   8 to 10 percent
2. 12 to 18 percent

Between 8 and 10 percent of all gift card will never be used. This means that Americans spend over $8 billion per year on little pieces of plastic.

1. Escheat laws protect the consumer against companies who try to cheat them with fake gift cards.
   Escheat laws allow states to collect taxes from the profits a company makes when gifts cards are not redeemed.
2. Escheat laws allow the company to impose hidden fees without informing the consumer.

When gift cards go unredeemed, the company makes an easy profit. Escheat laws allow for taxes to be levied against those profits.