--- title: 2026 Breakage Report description: Explore LocalCard’s 2026 Breakage Report and discover how customers claim, spend and leave funds unspent on promotional Visa cards. image: https://www.localcard.io/hubfs/blog-header.png --- [For shoppers](http://www.localcard.io/) [For business](http://www.localcard.io/business) [For Business](http://www.localcard.io/business) Platform Core products [**Scan to Pay**Cards that unlock when a customer scans your product.](http://www.localcard.io/business/scan-to-pay)**Shop Lock**Keep spend at one merchant, a group of merchants or an entire brand.**GEO Locked**Cards that only activate at a chosen store, centre or precinct.**Open Loop**Cards that can be spent anywhere Visa is accepted. Platform **Merchant Connect**Accept LocalCard at your stores and see redemptions live.**Reseller**Sell LocalCard programs to your own clients under your brand. [Featured ![](http://www.localcard.io/hubfs/stp.svg) **Scan to Pay** Turn any product into a reward. Scan the barcode to unlock & pay. *Learn more →*](http://www.localcard.io/business/scan-to-pay) Resources [VISA**Blog**Product updates, campaign ideas and what we're learning about programmable payments.*Read the blog →*](http://www.localcard.io/business/blog)[![](http://www.localcard.io/hubfs/breakagereport.svg)**Breakage Report**Our data on unspent gift card value in Australia and what it means for your programs.*Read the report →*](http://www.localcard.io/business/breakage-report)**Case studies**How brands and retailers are running promotions on LocalCard.*See case studies →* [Help centre](https://help.localcard.io) [Sign in](https://dashboard.localcard.io) [Get Started](https://www.localcard.io/login/sign-up) [Contact sales](http://www.localcard.io/business/contact-sales) ##### Table of contents [Blog](http://www.localcard.io/business/blog) / [Reports](http://www.localcard.io/business/blog/tag/reports) # 2026 Breakage Report August 2026 • 2 min read ![](https://www.localcard.io/hubfs/blog-header.png) # Understanding Promotional Card Breakage What happens after a promotional Visa card is sent to a customer? How quickly is it spent — and how much is never used? The **LocalCard 2026 Breakage Report** analyses thousands of digital promotional Visa cards to provide real-world insight into how customers claim and spend rewards, and importantly, how much remains unspent. The report examines cards across different values and tracks spending behaviour over time, providing businesses with a clearer picture of the true economics behind promotional card programs. ## Key findings - **Breakage can be significant:** lower-value promotional cards recorded breakage of more than 50%, while $100 cards recorded **26.63% breakage after 90 days**. ![Screenshot 2026-08-20 at 3.13.22 pm](https://www.localcard.io/hs-fs/hubfs/Screenshot%202026-08-20%20at%203.13.22%20pm.png?width=1550&height=954&name=Screenshot%202026-08-20%20at%203.13.22%20pm.png) - **Most spending happens quickly:** around **90% of eventual spend occurs within the first 60 days**, with very little additional spending after approximately 90 days. - **Reminders matter:** automated reminders significantly increase card claims and customer engagement. ## Why breakage matters Breakage isn't simply an accounting outcome. It can represent a significant percentage of the original promotional budget and should be considered when measuring the true cost and performance of a campaign. **LocalCard is a programmable Visa card platform designed for business promotions, incentives and rewards.** Businesses can control where, when and how cards are spent using Brand, Merchant, Category and GEO controls, while gaining visibility over card activity and unused balances. The **2026 Breakage Report** gives businesses real-world data to better understand customer behaviour, structure smarter campaigns and make more informed decisions about their promotional spend. **Better data. Better controls. Smarter promotional money.** Share this post [mailto:?subject=%3Cspan+id%3D%22hs_cos_wrapper_name%22+class%3D%22hs_cos_wrapper+hs_cos_wrapper_meta_field+hs_cos_wrapper_type_text%22+style%3D%22%22+data-hs-cos-general-type%3D%22meta_field%22+data-hs-cos-type%3D%22text%22+%3E2026+Breakage+Report%3C%2Fspan%3E&body=http%3A%2F%2Fwww.localcard.io%2Fbusiness%2Fblog%2F2026-breakage-report](mailto:?subject=%3Cspan+id%3D%22hs_cos_wrapper_name%22+class%3D%22hs_cos_wrapper+hs_cos_wrapper_meta_field+hs_cos_wrapper_type_text%22+style%3D%22%22+data-hs-cos-general-type%3D%22meta_field%22+data-hs-cos-type%3D%22text%22+%3E2026+Breakage+Report%3C%2Fspan%3E&body=http%3A%2F%2Fwww.localcard.io%2Fbusiness%2Fblog%2F2026-breakage-report) ## Want better transparency and control for your card program? [Get started](http://www.localcard.io/get-started) [Contact us](http://www.localcard.io/business/contact-sales) The programmable payments platform. Decide exactly how every dollar is spent. [Get started](https://www.localcard.io/login/sign-up)[Contact sales](http://www.localcard.io/business/contact-sales) #### Platform [Scan to Pay](http://www.localcard.io/business/scan-to-pay)Open LoopBrand LockedGEO LockedCategory LockedMerchant ConnectReseller #### Resources [Blog](http://www.localcard.io/business/blog)[Breakage Report](http://www.localcard.io/business/breakage-report)[Help centre](https://help.localcard.io) #### Company [Contact sales](http://www.localcard.io/business/contact-sales)[Sign in](https://www.localcard.io/login)[For shoppers](http://www.localcard.io/) #### Legal [Terms](http://www.localcard.io/terms)[Privacy](http://www.localcard.io/privacy) © 2026 LocalCard. All rights reserved.Visa is a trademark of Visa International Service Association. 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