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I don't think breakage applies, because I doubt they can keep the the lost/forgotten coins, just like unspent gift card money is not kept by the issuer.

by iguana 14y ago

Lexarius 14y ago
But it does sit in their bank account generating interest until used.
blackjack48 14y ago
It's more analogous to an indefinite, interest-free loan to Amazon.
- Jtsummers 14y ago
  Interesting. Per [1] they can't be cashed out or exchanged. So you buy coins, that's the transaction. Amazon is probably then free to do whatever they want with the money. Their only obligation is to later pay out to developers who receive coins as payment. So they're frontloading their earnings. And devs only receive 70% as usual so Amazon gets 30% totally in the clear (no potential future obligations). [1] http://www.digitaltrends.com/mobile/heads-or-tails-amazon-coins-highlight-tradeoffs-of-virtual-currency/ http://www.digitaltrends.com/mobile/heads-or-tails-amazon-co...
  - dmiladinov 14y ago
    Is this any different from how Facebook Credits work(ed)?
    - Jtsummers 14y ago
      Someone else will have to answer that, I'm not familiar with them.
wmf 14y ago
Do those rules apply if the balance is not denominated in dollars?
weego 14y ago
Riot keep the balance of you RP that you paid money for if you don't spend it in League of Legends, would it be different if it were called Riot Coins?
- fryguy 14y ago
  Riot doesn't pay out the coins you spend to other people though. If you buy $1 of an app with these amazon coins, they have to pay the developer their $0.70 (or whatever their cut is). Because of this, the whole income can be realized when the RP is purchased.
morsch 14y ago
Where does the unspent money go, then? Apparently, in some cases in the US, it goes to the state, but not in all cases. See http://blogs.wsj.com/economics/2011/12/24/number-of-the-week-billions-in-gift-cards-go-unspent/ http://blogs.wsj.com/economics/2011/12/24/number-of-the-week... Best Buy, for example, sets that level at about two years. In fiscal 2011, the electronics company recorded $53 million in income from gift-card “breakage,” or cards that are unlikely ever to be redeemed, up from $43 million a year earlier.

I don't think breakage applies, because I doubt they can keep the the lost/forgotten coins, just like unspent gift card money is not kept by the issuer.

by iguana 14y ago

I don't think breakage applies, because I doubt they can keep the the lost/forgotten coins, just like unspent gift card money is not kept by the issuer.

Lexarius 14y ago

But it does sit in their bank account generating interest until used.

blackjack48 14y ago

It's more analogous to an indefinite, interest-free loan to Amazon.

Jtsummers 14y ago
Interesting. Per [1] they can't be cashed out or exchanged. So you buy coins, that's the transaction. Amazon is probably then free to do whatever they want with the money. Their only obligation is to later pay out to developers who receive coins as payment. So they're frontloading their earnings. And devs only receive 70% as usual so Amazon gets 30% totally in the clear (no potential future obligations). [1] http://www.digitaltrends.com/mobile/heads-or-tails-amazon-coins-highlight-tradeoffs-of-virtual-currency/ http://www.digitaltrends.com/mobile/heads-or-tails-amazon-co...
- dmiladinov 14y ago
  Is this any different from how Facebook Credits work(ed)?
  - Jtsummers 14y ago
    Someone else will have to answer that, I'm not familiar with them.

wmf 14y ago

Do those rules apply if the balance is not denominated in dollars?

weego 14y ago

Riot keep the balance of you RP that you paid money for if you don't spend it in League of Legends, would it be different if it were called Riot Coins?

fryguy 14y ago
Riot doesn't pay out the coins you spend to other people though. If you buy $1 of an app with these amazon coins, they have to pay the developer their $0.70 (or whatever their cut is). Because of this, the whole income can be realized when the RP is purchased.

morsch 14y ago

Where does the unspent money go, then? Apparently, in some cases in the US, it goes to the state, but not in all cases. See http://blogs.wsj.com/economics/2011/12/24/number-of-the-week-billions-in-gift-cards-go-unspent/ http://blogs.wsj.com/economics/2011/12/24/number-of-the-week... Best Buy, for example, sets that level at about two years. In fiscal 2011, the electronics company recorded $53 million in income from gift-card “breakage,” or cards that are unlikely ever to be redeemed, up from $43 million a year earlier.