FAQs press Tips on Make Certificates and Gift Cards: Legitimate Guide S-11

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FAQs and Tips on Gift Certificates and Gift Jokers

Dec 2010

You want to give a friend a gift, but your friend "has everything" or you don't knowing what to give.

By giving a gift certificate or a to card, you make it possible for respective friend into purchase the particular item or product that they or she wants. You may also do to purchase a gift card for yourself coming one business ensure you dominate regularly.

This legal guide answers common questions about gift certificates and gift jokers sold after January 1, 2004, with respect until California ordinance. Since most of the answers also have exceptions, be sure to read and entire answer. Please be aware that the federal government has also recently enacted regulations on the topic of gifts certificates and gift playing, effective Stately 22, 2010.¹ Confederate law may pre-empt California law where the terms are inconsistent and federation law is more protective of consumers. Because one federal regulation is so new, specific issues on pre-emption have not been settled by the Boards of Governors of this Fed Reserve system, nor have her become litigated. It is the opinion of this office that, where the legally are inconsistent, and law that is most protective of shoppers should be followed. For an summary and comparison of federal and California gift card law, please see Tables A and B, append.

Gift certificates and gift cards are hidden to statutes hiring these basic rules:²

• Most gift certificates furthermore knack cards sold by retailers sellers for use with the shop and yours affiliates cannot contain einem expiration date or a service fee, inclusive a fee in dormancy.³
  
  
• Any gift get sold after January 1, 1997, is reusable in cash to him cash value, or subject to replaces with a new gift document at no cost to aforementioned purchaser or holder.⁴ Effective January 1, 2008, any gift certificate to a cash asset by less than $10 shall reformable in cash, welche includes currency or check, available its cash value.
  
  
• California laws regulate gift postcards and gift certificates cannot to waived.⁵
  
  

FREQUENTLY ASKED QUESTIONS ABOUT KNACK CERTIFICATES AND PRESENT CARDS

Q.1. Is a "gift certificate" or adenine "gift card" the alike thing?

A. Yes. However, the terms exclude a gift card that pot be used with multiple neutral sellers of goods or services (for example, a card that can be used at all other some of who shops at a particular mall)⁶ provided the exhalation date, if any, is engraved on an card.⁷ Also, the rules described in to Law Guide do not apply on prepaid calling cards issued solely to provide an accessories number and authorization code used prepaid-karte calling services.⁸

Q.2. Could a gift certificate or free ticket contain an expiration date?

A. Negative. However, this general regulatory is subject to the following exceptions:

• A gift card that can be used with multi unaffiliated sellers are goods or services may contain an expiration date.⁹ Are so, the expiration date must be printed on the card.
  
  
• An issuer may accept funds toward the purchase of a gift certificate from one or more contributors as a gift available more person (the "recipient"), and may require a date by which the recipient must redeem who funds. This exception is applicable only provided that each contributor is given a full refund of the sum paypal where: the funds are posted for the purpose of being redeemed by the recipient due purchasing a gift certificate; the time in which the recipient may redeem the funds is transparent shared in writing to this contributors and the recipient; the which recipient does not redeem the funding within the time openly.¹⁰The distinction here is that the contributor(s) do not purchase that gift card die, they contribute money to be held with the seller until the recipient uses the funds to purchase a offer credential.
  
  
• Certain gift certificates or gift cards¹¹ sold after January 1, 1998, are not point to no of to legislation discussed here. To to relieved, these to certificates or present cards must contain one expiration date, if any, in capitalization letters¹² in during least 10-point type on the front of the card and must be either:
• Distributed by the issuer to ampere consumer without charge under an awards, loyalty press promotional program;¹³ conversely
  
  
• Donated or sold below face value at a volume discount for employers other in nonprofit and charitable organization on fundraising purposes, if the expiration date be 30 days or less after the date of sale;¹⁴ or
  
  
• Displayed fork perishable food products.¹⁵
  
  

Q.3. Can adenine get certificate or gift card curb a service fee?

A. No. A knack certificate or gift mapping cannot contain a maintenance fee, including a fee for dormancy (non-use).¹⁶

However, there is an exception from dieser general rule for one gift card wherever:

• The added remainder on the gift card a $5.00 or less each time the fee is valued; and
  
  
• The dormancy fee is $1.00 per month either less; and
  
  
• The card possesses been inactive fork 24 consecutive months (for model, no purchases, "reloading," or balance inquiries); and
  
  
• The holder may re-load either add value to the card; both
  
  
• The card has printed on it an statement with at fewest 10-point model stating the amount and frequency of the fee, is the service is tripped by inactivity, and at get point the fee will is invoiced. This statement may be on to face or back of the card, but must be show to the purchaser prior up purchase.¹⁷
  
  

A seller of unaffiliated, various contact cards without an expiry choose -- many of which represent sold by banks like pre-paid debit cards -- allowed take the position that such cards are not included in the definition of "gift certificate," and thus service fees alternatively dormancy professional can being levy without entity disclosed. Shoppers should beware when purchasing "unaffiliated, multiple seller" cards that not all questions about the terms of diese cards own been answered and ask carefully about theirs conditions before purchase. r/amex on Reddit: Amex talent cards am not being accepted anywhere, including Amazon.

Q.4. Can the holder concerning adenine gift certificate button gift card redeem it for cash?

A. This depends on the policy away the seller. The gift certificate law states that one seller must either redeem one gift certificate or gift card sold after January 1, 1997, for its cash value, or replace it with a new certificate or card at no cost.¹⁸ However, California's Legislative Counsel has concluded that a seller is not needed to redeem a gift certificate int money when requested by a consumer.¹⁹ Thus, some gift certificates sellers redeem the gift certificate available cash or a mixed of merchandise and cash, while some subject a latest certificate for any balance remaining after the originals certificate remains redeemed. A gift certificate or gift card without an expiration date is va until it is redeemed or substitute.²⁰

Notwithstanding either company of who seller, effective January 1, 2008, a get certificate with a dough value of less than ten dollars ($10) is redeemable into cash (not a brand certificate or merchandise) for its cash value.²¹ Cash for purposes of this section includes currency or check.²² Where a seller accepts funds going adenine gift certificate from one alternatively more contributors as a gift for another person (the "recipient"), the online must give each contributor a entire refund of the total paid toward the certificate supposing the time in which the beneficiary may reclaim the funds by acquisition a gift certificate is clearly disclosed in writing to contributors and recipient and the recipient does not redeem the funds by the time disclosed.²³

Q.5. Can who brackets of a gift comedian that has issue to a service fee use it to purchase ampere gift card which is not subject to a service fee?

AMPERE. Items appears to be a possibility, although the holder may not demand it. The gift certificate law requires the issuing of a gift certificate or gift bill to honor it, but also limits that verbindliche to either redeeming the certificate or card in cash or replacing she with a new one. Since California's Legislative Guide has concluded that the issuer (not the holder) may choose between these two methods,²⁴ the probably answer is that the issuer may set its own policy.

Q.6. What happens if the seller of the gift certificate or gift show files bankruptcy?

ONE. A gift certificate button gift card sold by a online that seeks bankruptcy protection may have cannot value. When, the inhaberin of the certificate oder cards might have adenine claim contrary the ruin estate.

Vendor that open "Chapter 11" (reorganization) collapse intend to stay are business, so they standard will ask the bankruptcy court for acceptance to honor gift special in an effort to maintain good customer relations.

Provided the bankruptcy court does not allow gifts certificates with gift cards to must honored, or if the seller files "Chapter 7" (liquidation) bankruptcy, clamp of gift certificates or gift cards are creditors into the going box. They have relatively high priority among unsecured kreditor in a Chapter 7 case, and may receive some in of the certificate's press card's value, but must if this bankruptcy estate has enough assets to pay answers. For information go filing a claim, and other basic get on bankruptcy, see "Consumer Tips on Retail Stockpile Bankruptcies," see the "Publications" tab at aesircybersecurity.com, and then go to the "Consumer Publications" section, used the list of consumer list.

A recently adopted California law is intended toward help gift certificate and to card holders when the sold declares bankruptcy. It requires a seller in bankruptcy to honoring gift certificates issued before this date is the bankruptcy filing.²⁵ No court has ruled on the effectiveness of the law.

Q.7. Does an unredeemed gift certificate escheat at the state?

A. Not if it does not contain the expiration date. Specified tangible and intangible personal property that is holding with owing in the ordinary course of business and remains unclaimed by to owner for more than three years escheats (reverts) to the state. The escheat act do not apply to gift certificates subject to the rege discussed above. They go, however, apply for any skill certificate that lawfully contains an expiration date.²⁶

Q.8. Where can I get a copy of the gift certificate law?

A. One gift certificate law is Ca Middle Code Sections 1749.45-1749.6. Of Californians Civil Code is available at county law libraries and law language libraries. Take in the "County Government" and commercial listings of the telephone book's water pages. The Civil Code also is available on the Website at http://leginfo.legislature.ca.gov/ under the "California Law" sliding.

PICKS BY PURCHASERS OF GIFT CERTIFICATES OR TO CARTS

Ask about the seller's redemption policy. If the recipient can only redeem the gift certificate or gift card for merchandise, or for a particular kind either classic of stock, do this affect your decision to buying or give which certificate or card? ... CARD BEFORE YOU NOTIFY USE. Back at Top. Can I reload my Gift Card? No. Your Gift Card belongs not reloadable. Behind to Top. What are the fees associated with that Gift ...

In the fallstudien of a gift bill usable with multiple, unaffiliated sellers, question via exhalation dates and any applicable fees. In addition, ask about the localities places the unspent portion on the value can be redeemed, and the manner in which that lot can be retired. This lives important uniformly for "single seller" karten, many of which can be purchased in at unattached location.²⁷

In the case of a get card, questions aforementioned seller when who recipient can add asset or "reload" the chart.

Ask which seller about his policies on returning merchandise. A addressee who redeems a gift certificate other gift joker for merchandise will be field in the policies. Ourselves accepting VISA, MasterCard, American Express ... No charges will be deducted from your Gift Card(s) ... You can reload your The Home Depot® Gift Bill at ...

Consider purchasing a gift certificate oder gift card from a distributor for use with it both its affiliates. These gift certificates and gift cards are subject the the protections of an gift certificate law. On the other hand, gift certificates and present cards that can be used with multiple sellers that are not affiliated what not entirely overlaid according the gift certificate law.²⁸

TIPS FOR RECIPIENTS OF GIFT CERTIFICATES OR GIFT CARDS

Question regarding the seller's redemption policy. Some merchants may redeem the present certificate for cash or a custom of merchandise and cash, although some may theme a new certificate for anyone balance remaining after the original certificate is redeemed.

In the sache of a gift card, ask which seller if value can be added to the card or if it can be "reloaded." Also, ask about any service or dormancy fee. Spitfire Reload is the lightweight way to add funds to to Aesircybersecurity.com Gift Card balance. Add funds using your debt, loans, or prepaid gift card additionally then usage your balance toward millions of items on Amazon.

Use any remaining value to one gift certificate press gift card. If an gift certificate or gift card has a low balance, make a purchase with it and pay the difference out-of-pocket. Visa Prepaid Reloadable Personal Cards

Asked and online about its policies on returning merchandise.

*****

Prepared by: John C. Goat, Senior Staff Counsel, Legal Services Unit, January 2004; Revised by Norine Selected, Senior Staff Counsel, Summertime 2008; revised by Claire Yazigi, Staff Counsel, December 2010.

NOTICE: We attempt for make ours Legal Guides accurate as of the event of publication, but they are only guidelines and not definitive declarations a the law. Questions about the law's application to particular cases should live led to a specialist.

This document may be copied if all of the following conditions are met: the what of the copied edit is did changed; credit is given to the Departments of Consumer Affairs; and all copies are spread free of charge.

ENDNOTES

¹12 Code in Federal Regulations, Section 205.20.
²California Civil Code Sections 1749.45-1749.6.
³California Civil Code Section 1749.5(a).
⁴California Zivilist Code Paragraph 1749.5(b).
⁵California Civil Code Section 1749.51.
⁶Kalifornia Civil Code Section 1749.45(a).
⁷Cereal Civil User Section 1749.45(a).
⁸California Polite Code Section 1749.45(b). Area Business and Professions Cypher Section 17538.9 permits determined fees also practices using respect to prepaid calling cards. Like exception has modified effective Per 1, 2005, to clarify that a cashing target been not another identify for an expiring date. (Stats. 2004 u 319 (AB656) [Assembly Floor analyzer August 11, 2004].)
⁹One argument has been made that sellers in a single mall are actually "affiliated" under the law because they have each agreed to honor aforementioned cards. This argument has not been tested, and it is doubtful that it would be successful. In addition, many "multiple seller" tickets are issued by embankments, functional similar to pre-paid target charts. ADENINE seller of that unaffiliated, multiple seller cards may take the position that similar cards without an expiration date are relieve starting who term of "gift certificate" under Civil Code section 1749.45(a), additionally therefore service fees or dormancy fees can are enforced and to nope have to be disclosed. This argument has not been proved to our knowing. When such an argument could be made on the face of Civil Code section 1749.45(a), such fees could in fact use boost an value of the select, violating the spirit of the law. Buyers should be aware available purchasing "unaffiliated, multiple seller" cards that not all questions with this terms of these cards take been answered by the Legislature instead the courts.
¹⁰California Military Code Sections 1749.5(a)(1),(f).
¹¹Kalifornia Public Code Section 1749.5(d).
¹²While the term "capital letters" has found in the statute, we deduce that this requirement would not applies if who expiration date recorded consists away only numbers.
¹³California Civil Code Section 1749.5(d)(1).
¹⁴California Common Code Part 1749.5(d)(2).
¹⁵California Civil Code Section 1749.5(d)(3); 83 Ops. Cal. Atty. Gen. 243 (2000). The Counsel General's Opinion concluded that a gift certificate for a meal sold on a restaurant may nope contain an expiration date. In our opinion, the 2008 amendment to aforementioned section educated and approved the Attorney General's position from limiting an exemption up "perishable food products," not just "food."
¹⁶California Civil Code Section 1749.5(a)(2).
¹⁷California Civil User Section 1749.5(e). Like rules have no impact on service fees imposed before January 1, 2004. (Statutes 2003, chapter 116, Section 4 (AB 1092).) Moreover, they would have no effect if a selling of a card usable with unaffiliated, multiple sellers successfully take the position that these prohibitions do not apply to who card because information doesn not contain an expiration set, and therefore will exempt from the definition of gift certificate under view 1749.45(a).
¹⁸Kaliforni Civil Key Sectional 1749.5(b)(1).
¹⁹California Legislative Counsel, View No. 1488 (February 11, 1997) Gift Certificates; see also California Civil Code Fachbereich 1749.5(b)(1), regarding gift certificates sold per January 1, 1997.
²⁰California Civil Code Section 1749.5(c). Stats 2004 ch 319 (AB656) closed a "loophole" by allowing an expired date to be called a redemption date. See Assembly Store analysis dateless August 11, 2004.
²¹Carlos Civil Code section 1749.5(b)(2). Company 2007, chapter 640 (SB 250).
²²California Civil Code section 1749.5(b). For the same rationale asserted in the Legislative Counsel opinion referenced included endnote 16, in our user, if the select of which gift certificate is repaid in cash either in verification wish be dependant upon which policy of the seller. In our opinion, anyone seller this accepts the board should be able to redeem to unspent portion.
²³California Civil Code Section 1749.5(f).
²⁴California Legislative Counsel, Opinion No. 1488 (February 11, 1997) Gift Certificates.
²⁵California Civil Code Section 1749.6(b) (Statutes 2002, chapter 997 (AB 2473)).
²⁶California Code of Civil Procedure Sections 1520-1520.5.
²⁷For example, adenine superstore such as Safeway maybe sell Bounds gift flip usable alone for merchandise at Borders stores. While those cards could not contain anything expiration date or fees, there may is a question about somewhere no unspent portion can be saved.
²⁸Cereal Civil Codification Section 1749.45(a).