How much do credit card companies make on unused gift cards?

How much do credit card companies make on unused gift cards?
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1 Answer

Answer :

According to the 2006 article, 10% of all gift cards purchased won’t be used. In many cases, the credit card companies only facilitate the transactions of the cards. They may not be the holding company for the card funds. The actual owners of the cash in card account is a company formed for that purpose. It may be the store retailer, or it may be a retail group. The money goes into an account, and the float—the difference between the money that comes in and what’s used, is invested. The profits earned on the float are more than enough to pay the transactional fees that are paid to the credit card processing company for processing transactions.
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