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Gift Card Fees in CaliforniaCalifornia currently has laws in place that regulate gift cards. This law covers all gift cards from retail stores where the gift card can be used at a single store or at any store that is part of the same retail chain. The California law does not cover gift cards cards which are linked to bank accounts and can be used at any stores where the bank card is accepted. The following rules for gift cards are currently applicable in California:
- Gift cards are prohibited from expiring except in the case where the gift card has a balance of $5 or less, has not been used in a two year period and is reloadable. If the situation meets all the exceptions, then a $1 fee per month is permitted.
- Gift cards with a cash value of $10 or less may be redeemed for cash.
The current California law covering gift card fees will be superseded by the recently passed Credit Card Act of 2009 which dictates the minimum gift card requirements for all states if the federal law is stronger than the current California state law. Any portion of the California gift card law which is stronger than the federal law will remain in effect. Gift cards issued in California will have to abide by the Credit Card Act of 2009 rules for gift cards when it takes effect in the summer of 2010.
The Credit Card Act of 2009 covers rules for both bank issued gift cards and store issued gift cards. The two main requirements are:
- Gift cards are prohibited from expiring for five years from the date that the gift card is purchased or from the last date any money was reloaded onto the gift card.
- Gift cards are prohibited from charging fees during the first 12 months from the time of purchase.
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