CardBreakageCardbreakage

Engagement

How a breakage audit works

Four phases, roughly three weeks, one data extract. No platform integration and no migration.

Phase 01

Days 1–4

Scoping and data intake

We confirm program scope, agree on confidentiality, and specify the extract: issuance records with activation dates and denominations, redemption transactions, and current outstanding balances. Customer-identifying fields are not required.

Outputs

  • Signed confidentiality agreement
  • Data specification and field mapping
  • Extract validation and completeness checks

Phase 02

Days 5–12

Cohort construction and modeling

Activations are grouped into issuance vintages and segmented by the dimensions that actually move behavior. We build empirical redemption curves per segment and reconcile modeled balances back to your reported liability.

Outputs

  • Cohort segmentation schema
  • Empirical redemption curves per segment
  • Ledger reconciliation of modeled balances

Phase 03

Days 13–18

Breakage determination

Curves are extrapolated to a terminal state to derive segment-level breakage rates, weighted by outstanding balance. We produce low, base, and high sensitivity cases and identify the behaviorally inactive share of the liability.

Outputs

  • Expected breakage rate with sensitivity bands
  • Liability aging schedule
  • Escheatment exposure mapping

Phase 04

Days 19–21

Advisory readout

You receive the full analysis pack and a working session with the analyst who built the model, structured so your finance team, auditors, and advisors can interrogate every assumption.

Outputs

  • Analysis pack and documented assumptions
  • Working session with the modeling analyst
  • Recommended monitoring cadence

What we need from you

The engagement is deliberately light on your team

Effort

One data extract

A single pull from your card platform or data warehouse. We handle the shaping and validation.

Effort

Two short calls

A scoping call at the start and a readout session at the end. Nothing in between requires your time.

Effort

One reviewer

A finance or program owner who can confirm the reported liability position we reconcile against.

Engagement

Run your breakage audit

A confidential, analyst-led review of your stored-value liability — expected breakage, redemption behavior, and escheatment exposure quantified against your own data.

No engagement commitment required. Scope is confirmed before work begins.

Run My Breakage AuditReview Methodology