These rules apply to two types of cards: Retail gift cards, which can only be redeemed at the retailers and restaurants that sell them; and bank gift cards, which carry the logo of a payment card network like American Express or Visa and can be used wherever the brand is accepted. A merchant account number that is used to transact credit card purchases also qualifies as an access device. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. Federal gift card rules. Fair Trading Amendment (Ticket Scalping and Gift Cards) Act 2017 No 52 (NSW). However the California law does not apply to multiple retailer gift cards such as mall gift cards or bank gift cards including Visa and MasterCard gift cards. issued in a specified amount, whether or not that amount may be increased in value or reloaded at the request of the holder; reloadable and not marketed or labeled as a gift card or, a loyalty, award, or promotional gift card, as defined by the, issued in paper form only (including for tickets and events); or, at the event or venue after admission; or. It came about to prevent large companies from abusing the credit card system. gift cards supplied in exchange for another gift card if both gift cards cease to be redeemable at the same time. honored upon presentation by such single merchant or affiliated group of merchants for goods or services. If you'd like to discuss what these laws mean for you, please get in touch with any of the CCR team members below. Following the CARD Act of 2009, the Federal Reserve enacted regulations to restrict fees, expiration dates and unexpected costs from gift cards. The new Hawaii law sets a cap on issuance fees, and prohibits expiration dates for electronic gift cards within the first five years of issuance. Competition and Consumer Law Act 2010 (Cth) sch 2, div 3A, s 99A. 2289, effective July 1, 2010, revises Hawaii's gift card statute to align it with the Federal gift card act. Here are some of our stories. Our people work with clients to solve their toughest problems, creating new ways forward to help them thrive. Gift cards can be a convenient present for the holidays and special occasions. Pub. So in original. Failure to comply with the law’s provisions is considered an unfair or deceptive practice and should be reported to the Georgia Department of Law's Consumer Protection Division. consider any such certificate or card for which funds expire to have no expiration date with respect to the underlying funds; comply with the disclosure requirements of paragraph (2) of this subsection. In 2009, President Obama signed the Credit Card Accountability Responsibility and Disclosure Act (a.k.a. Federal gift card rules. Regulate additional fees. gift cards for a particular good or service only available for a limited period of time (eg a one-night concert or temporary exhibition); gift cards for a particular good or service supplied at a genuine discount on the market value (eg a voucher for a massage valued at $100 for a price of $65); gift cards issued for temporary marketing promotions, where the gift card is supplied in connection with the purchase of goods or services (eg a $100 gift card if the consumer purchases a whitegood within the next month); gift cards donated for a promotional purpose (eg a free gift card to celebrate the first birthday of a store, regardless of whether the customer has made a purchase); gift cards supplied for the purposes of an employee reward scheme; gift cards supplied for the purposes of a customer loyalty program; and. In the last few years, several states passed or expanded gift card laws, with over thirty states now having gift card statutes. The federal CARD Act establishes restrictions on gift cards, including prohibiting card expiration earlier than five years after purchase. Federal law covers credit cards, as well as debit cards, ATM cards, gift cards, gas cards and any other type of card that can be used to negotiate a purchase. There are a number of other differences in the application of the federal laws that businesses need to be aware of, including the definition of a 'gift card' and the higher penalties imposed. redeemable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo; issued in a specified amount that may not be increased or reloaded; purchased on a prepaid basis in exchange for payment; and. This law, which mostly deals with consumer protection from credit card companies, also included new rules for gift cards. The terms "gift certificate," "store gift card," and "general-use prepaid card", as defined in paragraph (a) of this section, do not include any card, code, or other device that is: (1) Useable solely for telephone services; (2) Reloadable and not marketed or labeled as a gift card or gift certificate. Consumers should also be aware of federal rules concerning gift cards, which went into effect on August 22, 2010: If you find a gift card that has an expiration date, call the phone number on the card to see if the funds are still available. Forbid expiration for five years. L. 111–24, title IV, § 403, May 22, 2009, 123 Stat. The maximum penalty for contravention of the New South Wales law is $5,500 (50 penalty units), whereas in South Australia it is $5,000. The Federal Reserve says that some states already have rules that limit fees on gift cards and restrictions on gift card expiry. Except as provided under paragraphs (2) through (4), it shall be unlawful for any person to impose a dormancy fee, an inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card. ... For the purposes of paragraph 191E(c) of the Australian Consumer Law, section 191A of the Australian Consumer Law does not apply in relation to a gift card supplied in any of the circumstances specified in subregulation 89C(2). In 2009, President Obama signed the Credit Card Accountability Responsibility and Disclosure Act (a.k.a. L. 111–203 substituted “Bureau” for “Board” wherever appearing. ATM cards, charge cards, credit cards or debit cards; cards or vouchers only redeemable for phone credit, internet access or any other utility; cards or vouchers supplied in substitution for goods returned to the supplier of the goods; cards or vouchers supplied as part of customer loyalty or employee rewards programs; cards or vouchers supplied as part of a temporary marketing promotion to the purchaser of goods or services in connection with the purchase of the goods or services; cards or vouchers that are only redeemable for a particular good or service available for a limited period; and. In this respect, California law is more consumer friendly than the federal law. Federal rules say that gift cards cannot charge inactivity or service charges for 12 months, but after that first year, these fees could start to eat away at your card’s value. Forbid expiration for five years. The CARD Act: A Federal Gift Card Law. The final rule amends Regulation E to implement the gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act).