Giving Gift Cards for the Holidays in Harrison? Read the Fine Print

HARRISON, NY — If you are giving — or hope to get — gift cards this holiday season, be sure to check if there are any fees or time limits.

State Comptroller Thomas P. DiNapoli it was important for consumers to read the fine print on gift cards, as well as register the card with the retailer and use it within a year of purchase to avoid inactivity fees.

“As New Yorkers finish their holiday shopping, gift cards are often last minute purchases,” he said.

“Last year, my office received nearly $11 million from expired gift cards,” DiNapoli said. “Reading the fine print before purchasing gift cards can help you avoid fees and protect your money.”

The money from unused gift cards issued by businesses in the state is turned over to the comptroller’s office as abandoned property after five years of dormancy.

Under the Federal Credit Card Act of 2009, DiNapoli said, many types of retail cards sold after August 22, 2010, are not permitted to charge inactivity fees unless the card has been inactive for at least 12 months. All terms and conditions for a card must be disclosed directly on the card and gift cards may not expire within the first five years after purchase.

Since January 1, 2011, New York has required companies offering rebates to disclose whether those rebates will be issued in the form of a gift card and whether any fees will apply to those cards. Rebate cards are not all covered by the same rules as regular gift cards, so this disclosure helps consumers to identify the different cards and how they can be used.

Gift cards may have terms and conditions that can decrease the value of the gift card. These may include charging:

• Service fees when the card is purchased;
• Dormancy fees if the gift card is not used within a certain period of time;
• Fees to call and check the balance remaining on the card; and
• Replacement fees for lost or stolen gift cards.

DiNapoli’s office is currently holding more than $14.5 billion in unclaimed funds from uncashed checks, bank accounts, stocks and more. To find out if you are owed money, visit www.osc.state.ny.us.

Patch file photo