Gift cards with no fee new rules
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Print The Federal Reserve Board proposed rules regarding fees and expiration dates for gift cards. The rules are designed to protect consumers from fees and would require that the terms and conditions of the gift credit cards be clearly stated.
Gift credit card rules
The rules would apply to gift certificates, store gift cards, and general use prepaid cards. Covered products include
- Retail gift cards, which can be used to buy goods or services at a single merchant or affiliated group of merchants (such as Safeway or Target).
- Network branded gift cards, which are redeemable at any merchant that accepts the card brand (such as Visa or MasterCard).
The proposed rules would not apply to other types of prepaid cards, including reloadable prepaid cards that are not marketed or labeled as a gift card or gift certificate, and prepaid cards received through a loyalty, award or promotional program.
Gift cards with no fee
The proposed rules would prohibit dormancy, inactivity, and service fees on gift credit cards unless the following criteria have been met
- One year of inactivity on the certificate or card
- No more than one fee is charged per month
- Clear disclosures about the fees are given to consumers
- Expiration dates for funds must be at least five years after the date of issuance, or five years after the date when funds were last loaded.
The rules are open for public comment for 30 days and after this period (sometime in December) is complete, the Federal Reserve will announce the final new rules for gift cards.
