Happy Midweek, !

This week we dive into the impact of tax refund season in the gift card market, analyzing consumers spending patterns and refund-ready strategies.

We also look into the controversial New Jersey’s 2010 gift card law that was deemed too burdensome and also sparked a debate over consumer privacy rights that goes on to this day

Despite the rise of private rentals such as Airbnb and VRBO, 55% of high income travelers still prefer the leisure and convenience that hotels offer.

— Consumer 150 Team

Gift Cards & Tax Refund Season—A Retailer’s Cheat Code

Tax refund season is basically Black Friday in slow motion—except instead of trampling each other for doorbusters, consumers are flush with cash and ready to spend strategically. The average refund this year? $3,138, and while 48% will stash it away, a solid chunk will still splurge on shopping, home goods, and travel​.

Retailers looking to cash in should take a Gift Card First approach:
✅ Delayed Spending = Future Sales – Many consumers hesitate to spend refunds all at once. Gift cards let them commit funds to your store while keeping flexibility.
✅ Bigger Basket Sizes – Shoppers tend to spend over 40% more than the value of their gift cards, boosting revenue.
✅ Bonus Offers Work – “Buy a $100 gift card, get a $20 bonus” turns one-time shoppers into repeat customers.

Want a refund-ready strategy? Start pushing digital gift cards now—before those tax returns disappear into savings accounts and car repairs.

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Boomers Skip the Host Fees

It turns out, for high-income Americans over 55, leisure travel is less about “local charm” and more about Egyptian cotton sheets. The latest data shows that this group overwhelmingly prefers hotels over private accommodations, with hotel bookings hovering around 55% while private rentals struggle to stay above 25%. The trend suggests that despite the rise of Airbnb and VRBO, convenience and consistency still win out. No one wants to spend retirement figuring out a smart lock or wondering if the host left enough towels. 

The takeaway is clear: hotel brands remain a top choice for travel-related perks, and catering to this demographic means doubling down on loyalty programs and upscale experiences.

In partnership with Range

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Gift Cards: Less Adventure, More Adulting

Gift card spending is getting a reality check. Essentials like gas and groceries continue to dominate (38%, up from 36%), while clothing and jewelry climbed to 33%. Meanwhile, experiences—travel, events, and entertainment—took an 8-point nosedive, dropping from 30% to 22%. Maybe people got their fill of “experiences” over the holidays, or maybe they’d rather not dip into their own wallets for the basics. Even beauty and toys saw slight declines, reinforcing the shift from fun to function.

Gift Card Campaigns Done Right: Vivid Seats’ Thank You Offer

A great gift card campaign doesn’t just drive sales—it builds loyalty. That’s exactly what Vivid Seats accomplished with its $30 thank-you gift card offer, rewarding past customers while creating urgency for their next ticket purchase.

Why it worked:
✅Targeted retention – Rewarding existing customers keeps them engaged.
✅Smart spending threshold – The $30 gift card was only valid on orders above $300, ensuring profitability.
✅Limited-time urgency – Same-day expiration encouraged immediate action.

The takeaway? A well-crafted gift card promotion can boost both loyalty and revenue—without feeling like a discount. Expect to see more brands leveraging gift cards as strategic incentives rather than just one-time perks.

New Jersey’s Gift Card Law: Escheat, Privacy & the Legal Battle

New Jersey’s 2010 gift card law sparked one of the biggest regulatory fights in the industry—banning dormancy fees, shortening the escheatment period to just two years, and requiring sellers to collect ZIP codes or addresses from buyers. The goal? Make it easier for the state to claim unspent gift card balances.

Retailers and issuers, including American Express, fought back hard, arguing the law was too burdensome and a privacy risk. Lawsuits followed, and in 2012, the Third Circuit struck down key parts of the law, including the controversial "place-of-purchase" rule. However, the ZIP code collection rule remained in place, despite ongoing debates over consumer privacy.

The fallout? Some major gift card providers pulled out of New Jersey entirely, citing compliance headaches. Meanwhile, legislators continue to wrestle with balancing escheatment laws against consumer rights—a battle that’s far from over.

In partnership with Range

Optimize Your Wealth Like You Optimize Deals.

Your wealth is more than just your portfolio—it’s your entire financial picture. That’s why Range built a modern, all-in-one platform that helps high-earning households manage everything from investments to tax strategy, real estate, and equity compensation—all for a single flat fee.

Ready for a smarter approach to wealth management? 

Book a complimentary demo today and see how Range helps you unlock the full potential of your money.

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