Changes to Disney Gift Cards begin today

[MichWolv]

That's pretty much my understanding, I think they may be counted for as sales, but then you need to account for them as a future liability. However these cards are often only valid for a set period....after which I guess you they cease to be a liability and then you have free money.

The accounting entry at purchase is to recognize the cash as an asset and the obligation to honor the gift card as a liability in equal amounts. There is no sale recorded until the gift card is redeemed.

As for the expiration, this is highly dependent on state law. In many/most states, gift cannot expire, although there can be a "non-use" fee of a reasonable amount that can erode the value. I don't believe Disney has such a non-use fee, perhaps because those fees are illegal in Florida (I don't know). For cards that do not expire, virtually all states require that, after a period of time, the issuer "escheat" the remaining funds by transferring to the state the remaining balances. Owners may then apply to the state for reimbursement.

 

[dreamfinder]

That's pretty much my understanding, I think they may be counted for as sales, but then you need to account for them as a future liability. However these cards are often only valid for a set period....after which I guess you they cease to be a liability and then you have free money.

Many states are now requiring that gift cards cannot expire, and cannot have fees to use them either. (Pre-paid credit cards are still a different beast altogether though) So many stores just accept that policy nationwide instead of trying to figure out what happens if the card was bought in a state that requires non-expire, but reloaded in a state that allowed expire, but then used in yet another state that is non-expire. Etc.

 

[Dwarful]

I don't see a big deal in the jump up to $15. But I know lots of groups or organizations that give small rewards.....youth groups, Accelerated Reader programs, heck my daughter's orthodontist allows them to earn points for doing certain things and then cashing those points in for prizes or gift cards. I can see $5 for McD's or the movie theaters (our movies are $4 for anyone before 6 pm)..but I can see WDW saying $10 limit...I think $15 seems odd...but it is their choice.