DCP: Gift Certificates and Gift Cards

Gift Certificates and Gift Cards

 
Differences between Store and General Purpose Gift Cards
 

 Store/Restaurant Gift Card
"General Purpose" Bank or Mall Gift Card 
 Accepted at: Specific store / restaurant  -- or chain  Most stores / restaurants
 Cost to buy: Nothing  $3.95 to $6.95
 Monthly fee
(after 6-12 mos.)    
 None  Up to $4.95 per month
 Split payments? Yes  Sometimes

 

When Buying a Gift Card
  • Buy only cards that clearly disclose information about the initial cost, monthly fees, and expiration date.
  • For general purpose gift cards, expiration dates indicate when the user will need to have the gift card reissued or receive a refund, sometimes at a fee.

 

Upon Receiving a Gift Card

  • Try to Spend the Entire Balance within 6 Months
    • You will be more likely to use all the card’s value.
    • You will avoid monthly fees on some general purpose gift cards.
    • You will reduce the chances of losing the store gift card’s value because of store bankruptcy.
  • Keep Track of Your Balance
    • Some gift card issuers provide information online about your card balance and some can inform you of the balance upon request.
  • Use Your Gift Card at Stores that Accept Split Payments
    • A split payment is making a purchase using more than one payment method, like a gift card and cash.
    • Most large chain stores accept split payments, but some stores will not.
    • To avoid problems, tell the cashier up-front when you want to make a split payment.
 

 

Concerns or Problems?

  • First contact the store or financial institution that issued the card.
  • If unsuccessful, consider contacting:
    • Federal Trade Commission 1-877-FTC-HELP
    • Comptroller of the Currency’s Consumer Assistance Group
    • Department of Consumer Protection (for cards issued by CT businesses only)

 

 

Connecticut's Unclaimed Property law was amended in 2003 to include language concerning gift certificates.  Effective August 16, 2003, merchants selling gift certificates cannot place expiration dates on the certificates, nor can they impose inactivity fees/penalties to gift certificates/cards if the certificates/cards are not used by a certain date.  Even if the “fine print” on the back of cards sold after that date describes inactivity fees or includes expiration dates, the new Connecticut law applies. 

In addition, issuers of gift items are required to maintain a record of the owner’s address (zip code is sufficient) and the identification number of the gift item. Holders must submit the owner’s address, along with their holder report and the unredeemed value of gift items, to the Treasurer’s Office following a three-year dormancy period.   Currently, merchants are required to turn over to the State Treasurer’s Office all money they received for gift certificates/cards not redeemed within three years from issuance.

As defined by Public Act 03-1, Sec 66(5), “gift certificate means a record evidencing a promise, made by consideration, by the seller or issuer of the record that goods or services will be provided to the owner of the record to the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information that is pre-funded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored-value card or certificate, a store card, or a similar record or card, but “gift certificate” does not include prepaid calling cards regulated under section 42-370 or prepaid commercial mobile radio services, as defined in 47 C.F.R. Sec. 20.3.”



Content Last Modified on 11/3/2009 10:00:48 AM