|
|
|
Gift Card Fees in VermontVermont currently has laws in place that regulate gift cards. This law covers gift cards, but does not cover debit cards or similar cards which access a consumer’s bank account or cards which initiate an electronic funds transfer from the account. The following rules for gift cards are currently applicable in Vermont:
- The gift card is prohibited from having an expiration date for the first three years after the gift card is purchased.
- The gift card is prohibited from having fees except in the case where the gift card is issued by a licensed money transmitter, financial institution or credit union. In this case, the institution may charge a one-time issuance fee of the smaller of $10 or 10%.
- If remaining value on a gift card is $1.00 or less, the gift card may be redeemed for cash.
- The consumer may redeem the unused portion of the gift card after its expiration date if they make such a request.
The current Vermont law covering gift card fees will be superseded by the recently passed Credit Card Act of 2009 which dictates the minimum gift card requirements for all states if the federal law is stronger than the Vermont state law. Any portion of the Vermont gift card law which is stronger than the federal law will remain in effect. Gift cards issued in Vermont 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.
|
|
Home
Forums
Newsletter