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Gift Card Fees in MassachusettsMassachusetts currently has laws in place that regulate gift cards. This law covers all gift cards except for prepaid calling cards and electronic gift cards that may be used by multiple retailers where the bank card is accepted. The following rules for gift cards are currently applicable in Massachusetts:
- Gift cards are prohibited from expiring for a period of seven years from the date the gift card is issued.
- Gift cards which can not be reloaded and have 10% or less remaining of their value may have the remainder of the value redeemed for cash.
- If the gift cards have a value of $5 or less, it may be redeemed for cash.
The current Massachusetts law covering gift card fees will be superseded by the recently passed Credit Card Act of 2009 which dictates the minimum gift card requirements for all states if the federal law is stronger than the Massachusetts state law. Any portion of the Massachusetts gift card law which is stronger than the federal law will remain in effect. Gift cards issued in Massachusetts 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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