Pennsylvania Treasury Department Issues Tips About New Gift Card Regulations

Gift Cards are one of the most popular holiday gift giving and receiving items. Yet, did you know that there has been recent legislation that has changed some policies involving credit cards? If not, these tips from the Pennsylvania Treasury Department can help. The National Retail Federation predicts that consumers will spend $26.3 billion on gift cards this holiday season. That is why knowing these new regulations can benefit you greatly, along with other features that you should take into effect when purchasing a gift card or receiving one. This advice was provided in a recent press release from the Pennsylvania Treasury Department.

When you consider purchasing a gift card you should always read the fine print. This can reveal details about expiration dates of a gift card and any maintenance fees or dormancy fees. There are some gift cards that will charge fees if you do not use it by a certain point after it is purchased. In general these are annual fees, but you will want to check the gift cards you plan on purchasing to make sure they do not occur more frequently such as semi-annually or quarterly. Also beware of cards that charge dormancy fees. These sometimes can be as often as monthly if the card is not used that month.

One thing that has changed in the past year is that if a card does not have an expiration date or fees on it, no longer have to be turned over to the Treasury as unclaimed property if they are not used. This increases the attractiveness of gift cards without fees and expiration dates as gifts. If a gift card does have an expiration date though, it will not be turned over immediately to the Treasury Department. The card must be reported to the state Treasury Department if it was issued in Pennsylvania two years after the expiration date as unclaimed property. Check with your state to find out if this is the same policy.