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What Is Breakage?

What Is Breakage?

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Written by Nicholas Martin
Updated over 4 months ago

What Is Breakage?

Definition:
Breakage is the portion of a gift-card’s value that goes unspent. For example, if you load $50 onto a card and only redeem $40, the remaining $10 is “breakage.” Likewise, balances on cards left inactive for extended periods (e.g. 3 years) are assumed unlikely to be redeemed.


How to Run a Breakage Report

  1. Sign in to the Ackroo console at manage.ackroo.com.

  2. Go to Cards.

  3. Click the + beside Filter Cards by and choose Inactivity.

    Step 1: Filter by Inactivity
  4. In Select Inactivity Range, pick your desired period (e.g. 3 years) and Apply.

    Step 2: Choose Inactivity Range
  5. To export, click Bulk Action → Export.

    Step 3: Bulk Action → Export
  6. Open the downloaded Excel file and SUM the card-balance column to calculate your total breakage.

Caution: Breakage is an accounting assumption. Cardholders remain entitled to redeem their full balances—gift-card funds do not expire.

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