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How Every Gift Card Is an Interest-Free Loan to a Corporation
Gift cards might feel like free money or a clever budget hack, but they are really interest-free loans to stores that make billions in profit when you forget to spend them.
In this episode of Classonomics, Sabrina Maddeaux and Mike Moffatt break down whether holiday gift card deals and self-budgeting hacks actually save Canadians money or simply hand retailers interest-free loans, how corporate balance sheets turn billions in forgotten balances and "breakage" into pure profit, the mechanics of why the Starbucks app holds more customer deposits than a typical community bank, what happened when…
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