Be sure that Find out about Gift Cards as well as the Legislation
Gift cards would be the quintessential easy gift idea. Everybody uses them, and they avoid questions like “Will this fit her?” or “Will he like this?” Gift cards and gift certificates can be found from a variety of stores, which range from the mundane like supermarkets and drug stores to more specialized businesses like spas and travel agencies. Irrespective of where you acquire or get a card from, however, it is important to protect yourself as a customer and be familiar with your rights surrounding gift card use. After all, they are used as type of currency and should really be treated as frugally as you might treat cash.
Exactly what do I do with a gift card I don’t want?
There are certainly a large amount of choices for putting gift cards you don’t desire to good use. You can find websites that exist for the only real purpose of buying and selling gift cards. Gift Card Granny, for instance, will buy your card for 60%-80% of its value. You can also sell your card on an internet site like Craigslist or eBay. Other websites like Gift Card Swapping permit you to trade your gift card for one you’ll actually use.
In 2009, the Credit Card Accountability Responsibility and Disclosure (CARD) Act [gpo.gov/fdsys/pkg/PLAW-111publ24/pdf/PLAW-111publ24.pdf] passed into federal law. The act covers a lot of ground surrounding the protection of credit cardholders, but it also created some federal standards for gift card issuers that are meant to protect consumers. These generally include requiring that cards, with a few exceptions, expire at least five years after issuance and that dormancy fees can only just be charged after one year of inactivity and as long as these fees are fully disclosed to consumers. In line with the CARD Act, stores are allowed to begin charging dormancy fees – meaning, a charge to keep the card active when it has not been used after a certain amount of time – after one year of inactivity, and no more than one charge per month. Eventually, these charges may deplete the value of the card. That is an essential way stores and major card issuers like American Express make money. However, some states have introduced additional, and sometimes contradictory, legislation surrounding gift card law.
As an example, New York law allows stores to begin charging monthly dormancy fees after just one year of inactivity. It is also legal for stores to charge a replacement fee for lost cards, and they cannot require stores to provide cash back for small balances on cards. buy paypal gift card Additionally, after five years cards are deemed “abandoned” and the total amount of the card is forfeited to the state. Other states, like New Jersey, establish abandonment after as low as two years of inactivity. (In New Jersey’s case, this policy has been deemed unconstitutional, so the state remains in flux between enforcing the overturned state standard and the federal standard.) Such provisions, which eliminate the profit for card sellers that comes with unused cards, have caused major issuers like American Express to pull out of grocery and convenience stores in some states.
For comparison, California grants gift card users with protection beyond the federal standard. Cards are never permitted to expire, even with five years, and dormancy fees can only just be charged after two years of inactivity and as long as the total amount on the card is less than $5.
What if there’s a little money left on my card?
You might be able to truly get your balance in cash. Beneath the CARD Act, most businesses are expected to offer cash for the residual balance on a card if the total amount is less than $5. (In some states, this minimum value is higher.) Of course, businesses often fail to teach their front-of-the-line staff with this law, so you may need to escalate through the ranks to get someone actually informed of the law.
What should I learn about online gift cards?
Online “gift certificate” sites offering deals like Groupon and LivingSocial fall into a notably gray section of the law. Generally, they are treated as coupons as opposed to gift cards, meaning they can generally set their very own terms in regards to expiration dates and redemption policies. Groupon, for instance, requires that stores honor the value an individual covered an offer after the offer has expired, but only as a shop credit.
Virtual cards, including the popular Amazon or iTunes cards that are often sent via email, do not usually expire. Sometimes they can be redeemed only online and not at brick-and-mortar stores, so browse the terms of the card carefully. Otherwise, they are subject to the exact same laws as tangible cards; for instance, Amazon includes the mandatory language to indicate that cash refunds are only available where “required by applicable state law,” although it does not give information on the best way to go about claiming small balances in cash.