While you should always confirm with your accountant, generally speaking, Gift Card and Gift Certificate programs should be handled as an Other Current Liability on your Balance Sheet.

Are gift cards liabilities?

When a gift card is purchased, your company should not record revenue; instead, the purchase of the gift card is recorded as a liability because you have an obligation to provide services or goods at a later point in time.

Are gift cards long term liabilities?

Accounting for the sale and redemption of gift cards under GAAP is pretty straightforward. ... For gift cards with no expiration date, the legal obligation to provide goods and services never expires. Leaving this on the balance sheet indefinitely results in a perpetually growing liability, which doesn't reflect reality.