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Gift Card Fees in TexasTexas currently has laws in place that regulate gift cards. This law covers gift cards with the exception of prepaid calling cards and prepaid calling cards or stored value cards issued by a federally insured financial institution. The following rules for gift cards are currently applicable in Texas:
- If the gift card has an expiration date, the expiration date must be clearly and conspicuously disclosed at time of purchase. The expiration date must be legibly printed on the card.
- The gift card is prohibited from having dormancy fees for first year from the time of purchase. If the gift card has any other fees, the fees must be clearly and conspicuously disclosed at time of purchase. The fees must be legibly printed on the card.
The current Texas law covering gift card fees will be superseded by the recently passed Credit Card Act of 2009 which dictates the minimum gift card requirements for all states if the federal law is stronger than the Texas state law. Any portion of the Texas gift card law which is stronger than the federal law will remain in effect. Gift cards issued in Texas 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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