Fed Finalizes Gift Card Rules

The Federal Reserve issued final rules for gift cards March 23, providing guidelines for how long a customer has to spend the money before a card expires. 

The creditor must wait five years from the date of issue before it can declare the card expired and therefore cancel the remaining funds on the card. A cardholder cannot incur a dormancy or inactivity penalty unless the card has been left unused for at least one year, the card issuer gives clear and conspiciuous notifications about the fees, and no more than one fee is added per month.

The new rules are part of the Credit Card Accountability Responsibility and Disclosure Act of 2009 and go into effect Aug. 22, 2010.

For more information, please read our previous story. Stores are also facing rules concerning issuance of retail charge cards.