Q: The holidays brought us a bunch of gift cards, which is nice, but we’re not sure when we’ll use them. Can we cash any of them in instead?
B.W., Calabasas
A: Retail gift cards and gift certificates generally cannot have an expiration date, with some limited exceptions, such as if the card can be used with multiple unaffiliated sellers of goods. If there is an allowable expiration date, it must be printed on the front of the card in a noticeable fashion.
The rules on cashing-in a gift card are as follows: If the card was bought after 1997, then it is either redeemable in cash for its value, or subject to replacement by the issuer with a new gift certificate to you. After Jan. 1, 2008, there is a different rule for a gift certificate that has a value of less than $10; in that instance, it is redeemable for its cash value, which can be paid by currency or by check.
The California Department of Consumer Affairs has useful details about gift cards, which you can find online at dca.ca.gov/publications/legal_guides/s_11.shtml, or simply type “DCA, Gift Cards” in your web browser. The statutes on point are online as well. Type “Civil Code Sections 1749.45 to 1749.6” in your web browser.
Q: Can there be a service fee on my gift card?
D.J., San Gabriel
A: A gift card or certificate cannot carry a service fee, which applies to dormancy (non-use), with the following five-part exception: The value remaining on the card is $5 or less each time the fee is assessed; the dormancy fee is $10 per month or less; the card has been inactive for 24 consecutive months; the holder may reload or add value to the card; and the card has a printed statement on it in large print about the fee. Also, the seller of unaffiliated, multiple-seller cards that have no expiration date (such as a pre-paid debit card) may take the position the card does not meet the definition of a gift certificate, and thus service or dormancy fees can be imposed without disclosure (in this instance,…
Read the full article here