Unspent balances from gift cards contribute to what's referred to as "breakage" in the gift card industry. Breakage occurs when consumers don't redeem the full value of the gift card before it expires or if the card is lost, forgotten, or left with a small balance.

Retailers or companies issuing these gift cards may recognize unspent balances as revenue, particularly if the cards have expiration dates or fees associated with them. Essentially, these unredeemed funds become profit for the businesses. However, some jurisdictions have regulations governing gift card expiration dates and fees, aiming to protect consumers from losing the full value of their cards.

In some cases, companies might have unclaimed property programs where they report unclaimed gift card balances to state governments, following legal requirements. States then often hold these unclaimed funds in trust until the cardholder or their heirs claim them through a process known as escheatment.

Overall, unspent funds from gift cards contribute to the revenue of the issuing companies, but the handling and treatment of these funds can vary based on the company's policies, legal requirements, and individual state regulations.