Gift Card Expiration

[DVCLiz]

I saw on the news today that new rules will take effect in August limiting the ways companies can restrict gift card expiration dates and fees for inactivity. I think I remember gift cards issued after August will have a five year expiration date. I didn't see what the user fee changes, if any, were.

I got a gift card from a local catering business - they also have some pick up and go dishes. I used to shop there all the time. My daughters gave me a $50 gift card for Christmas. It got put in a drawer and I forgot about it for about 18 months.

By the time I went to redeem it, it was worth about $16.00. I don't do business there anymore. I just think that's a huge ripoff. I'm glad to see some new rules will go into effect this summer.

 

[DisneyCowgirl]

I think part of the reason you see those inactivity fees relate to some states' unclaimed property laws. At least in some states, if a gift certificate expires, it is considered unclaimed property and the retailer has to give that money to the state. If instead they charge $5 a month inactivity fee until there is nothing left on the card, they get to keep the money.

I'm not saying I like it, but I do understand from a business point of view. I do hope the new regulations are friendlier to me as a consumer.

 

[FireDancer]

Unless something is changing federally gift card laws are handled by the state. Our state (Ohio) mandates that the gift cards we sell (they are Visa gift cards, not retail store cards) must have an expiration date at least two years out.

The reason that cards have to expire in a reasonable amount of time is because of how they are accounted for. When a card is sold the money loaded on them is actually a liability because it is basically in escrow. I am not in accounting (I'm in I.T.) but I did implement our gift card program from a project point of view so I was involved in setting up the GLs for them. In large companies that sell their own cards this can sufficiently effect the financial of the company to cause some headaches. The cost of accounting for all of the cards out there is also greater then zero and we don't want to keep these things around perpetually.

 

[DVCLiz]

Unless something is changing federally gift card laws are handled by the state. Our state (Ohio) mandates that the gift cards we sell (they are Visa gift cards, not retail store cards) must have an expiration date at least two years out.

The reason that cards have to expire in a reasonable amount of time is because of how they are accounted for. When a card is sold the money loaded on them is actually a liability because it is basically in escrow. I am not in accounting (I'm in I.T.) but I did implement our gift card program from a project point of view so I was involved in setting up the GLs for them. In large companies that sell their own cards this can sufficiently effect the financial of the company to cause some headaches. The cost of accounting for all of the cards out there is also greater then zero and we don't want to keep these things around perpetually.

I think this is a federal change.

 

[FireDancer]

I think this is a federal change.

Then I'm sure our COO will be in here shortly and I will be making changes to our system. If nothing else over-regulation is good job security for me

 

[DVCLiz]

Then I'm sure our COO will be in here shortly and I will be making changes to our system. If nothing else over-regulation is good job security for me

I think it's safe to take your lunch hour - I don't think it will take effect until August.

 

[pixiewings71]

In CA gift cards don't ever expire. One of the good things about living here.

 

[kali3]

I hate gift cards that expire. That's why I try to use mine ASAP.