The Wall Street Journalreports that the Federal Reserve Board has announced proposed rules to limit gift card fees and expiration dates.
Gift card retailers and issuers are prohibited from charging fees to customers who have used their cards in the previous year.
Gift card issuers can only charge one inactivity, dormancy or service fee per month.
Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded.
The proposed new rules are not in effect for this holiday season. They don't go into effect until next August. They are the gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009.
Retailers make cards much less attractive if they implement penalties, expiration dates and inactivity fees. If retailers want consumers to buy their gift cards the less restrictions on the card the better.
