Another example of breakage can be found in traveler's checks, which were widely used before credit cards and other modern payment methods became more common.
The longer the checks remained unredeemed, the more interest the issuer could earn, leading to substantial financial benefits.
[2] In the case of modern gift cards, many U.S. states have introduced unclaimed property laws to protect consumers.
These laws often require companies to turn over the value of unredeemed gift cards to the state, where consumers can claim the balance as unclaimed property.
This process, known as escheatment, ensures that companies cannot indefinitely keep unused balances, and that the funds are returned to the rightful owner.