Scammers often use gift cards as a way to defraud people of their money because they’re just like cash – any misuse is hard to trace. Gift Cards and Gift Certificates Statutes and LegislationįTC Has Gift Card Tips for Holiday Buying National Conference of State Legislatures (NCSL) To learn more about the laws protecting consumers who purchase gift cards, visit:

In addition, some states have separate laws that provide added protection in certain circumstances. For instance, the card issuer cannot charge a dormancy or inactivity fee on a gift card unless there has been no activity for one year and the card clearly states its policy toward that fee. The law also places general limitations on fees. Under the law, a gift card cannot expire until at least five years from the date it was activated. Bank gift cards, which carry the logo of a payment card network (e.g., Visa, MasterCard), are also subject to Credit CARD Act protections and can be used wherever the brand is accepted. These cards can only be redeemed at the stores and restaurants that sell them.

The Credit Card Accountability Responsibility and Disclosure (Credit CARD) Act provides several protections for consumers who purchase certain types of gift cards, including store and restaurant (also known as merchant) gift cards. While they seem simple, it is important that both the giver and the recipient read the details for each card to avoid any misunderstandings, and there might be additional policies set by the merchant or bank issuing the card. Gift cards can be a convenient present for the holidays and special occasions.

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