In this bad situation where COVID-19 has been forced to shut down businesses all over the world, many customers and organizations decided to support purchasing with prepaid visas or master gift cards. But whenever you receive a master gift card you start to think whether it would expire or you would have to pay fees, and so on. But don’t worry, we are here to make you acquainted with the rules, and regulations, and the fees of your new prepaid visa or master gift card. Gift cards have a variety of fees, expiration dates, and many other features. You have to pay service, and inactivity fees on your gift card which is unused several times. The Federal Reserve enacted some rules, so that this problem with the gift card recipients can be stopped.
Fees and expiration:
To protect the consumers from losing their gift card fund, the federal reserve wanted to make some rules, and after receiving the response from consumers, issuers, and industry commenters, the federal reserve enacted some rules.
- Under Federal law, the gift card can only expire after 5 years from the date of purchasing or the date of money loading on the card. If your card is expired you need not pay any kind of fees to replace your gift card.
- If your card remains unused for more than one year then you will have to pay the inactivity fee charged by the issuers. You have to pay only one service charge or inactivity fee every month.
- Gift Certificates, prepaid cards, store gift cards have an expiration date. You should also remember that money from expired gift cards may be subject to South Dakota’s unclaimed property law.
- The rules also restrict the emplacements of any fees for renovating an expired certificate or card to ensure that consumers can access the underlying funds for the full five-year period.
- The valid date printed on the gift card will allow you to use the card for the online transaction.
- You should be aware of the gift card fees. The issuers should mention the expiration date and the dormancy and inactivity fee information on the gift card.
- ATM fee, balance reload fee, balance inquiry fee are included in the service fees.
- To keep your gift card fund safe you should use your cards at least one time in a year. Always keep the cards together to help yourself.
- The recipients should be given clear, obvious exposure regarding the fees.
According to the Federal Reserve, many states have already enacted some rules about the limited fees on your prepaid visa or the master gift card, and the expiration dates of the cards. All these laws can only be applied to the store banned master gift cards. Sometimes the state laws are more effective because of better protection, rather than the law of The Federal Reserve.