[quote=Hobie]On paper it looks like a new sale. Overinflates sales numbers. Is B&N looking for a buyer? Besides lots of people never redeem gift cards and they have the cash. All said, I bet they limit that deal very soon. Smart kid. Proud Dad.[/quote]
Doesn’t quite work this way. Sales aren’t reported until the cards are redemmed. Trading in one gift card for another doesn’t affect sales volumne. But absolutely correct about cards that are never redeemed. Same thing with cashiers checks and travelers checks, that’s one of the ways Amex makes so much money, they keep the cash (and earn a return on it) while the travelers checks sit in someone’s dresser. The liability remains on their balance sheet, but they get the cash.
