--- 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://blog.localcard.io/hubfs/blog-header.png --- [For shoppers](https://blog.localcard.io/) [For business](https://blog.localcard.io/business) [For Business](https://blog.localcard.io/business) Platform **Open LoopComing soon**Cards that can be spent anywhere Visa is accepted. **Brand LockedComing soon**Lock spend to a single brand across any retailer. **GEO LockedComing soon**Cards that only activate at a chosen store, centre or precinct. **Category LockedComing soon**Restrict spend to a merchant category, like dining or fuel. **Merchant ConnectComing soon**Accept LocalCard at your stores and see redemptions live. [**Scan to Pay**Cards that unlock when a customer scans your product.](https://blog.localcard.io/business/scan-to-pay) [**QR Cards**Unique codes you hand out. 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Scan the barcode to unlock & pay. *Learn more →*](https://blog.localcard.io/business/scan-to-pay) Resources [**Blog**Product updates, campaign ideas and what we're learning about programmable payments.*Read the blog →*](https://blog.localcard.io/business/blog)[![](https://blog.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 →*](https://blog.localcard.io/business/breakage-report)**Case studiesComing soon**How brands and retailers are running promotions on LocalCard.*See case studies →* [Help centre](https://help.localcard.io) [Sign in](https://www.localcard.io/login) [Get Started](https://www.localcard.io/login/sign-up) [Contact sales](https://blog.localcard.io/business/contact-sales) #### See LocalCard for yourself Book a short walkthrough and see how merchant-locked Visa cards work for promotions, incentives and rewards. [Talk to our team](https://blog.localcard.io/business/contact-sales) ##### Table of contents [Blog](https://blog.localcard.io/business/blog) # 2026 Breakage Report August 2026 • 2 min read ![](https://blog.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://blog.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=https%3A%2F%2Fblog.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=https%3A%2F%2Fblog.localcard.io%2Fbusiness%2Fblog%2F2026-breakage-report) ## Want better transparency and control for your card program? [Get started](https://blog.localcard.io/get-started) [Contact us](https://blog.localcard.io/business/contact-sales) © 2026 LocalCard. All rights reserved. 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