Federal Reserve Board Announces New Rules for Gift Cards

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Federal Reserve Board Announces New Rules for Gift Cards

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Federal Reserve Board Announces New Rules for Gift Cards Posted Wednesday, November 18, 2009 by Amy This holiday season many of us will be purchasing gift cards to give to friends and loved ones. The Federal Reserve Board this week announced new rules that apply to gift certificates, retail store gift cards, and branded prepaid cards, such as Mastercard and Visa, that can be used at any merchant that accepts the card brand. The new rules are meant to implement the gift card provisions set forth in and include prohibiting dormancy, inactivity, and service fees on gift cards under certain restrictions. BBB offers tips on what to look out for when considering gift cards urges consumers to know what rules and restrictions apply before purchasing. Visit the Federal Reserve Board for detailed information on the new regulations before you buy.

Comments

Thanks, Gail, for your comments and additional insight!

Comment By BBB Amy At 11/24/2009 11:45 AM

Amy, this is an issue that I’ve discussed with my colleagues a great deal over the years. The current rules allow for a patchwork of state restrictions on gift card/certificate fees and expirations and make compliance with the escheatment rules very difficult for businesses. The consumer is also negatively impacted because they have little control over whether fees deplete their card balances or the card expires before the opportunity to fully use it.

It’s truly an issue of consistency. Some states have very strict rules on charges and expiration while others have none. A standard set of rules across the board is a step in the right direction. Some additional thoughts on this topic: http://bit.ly/ZEJeU

Gail Warner
President, The Keane Organization’s Unclaimed Property Services Division
www.holderadvocate.com
Blog: http://bit.ly/OGVzK

Comment By Gail Warner At 11/19/2009 3:03 PM

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