WASHINGTON, March 23 (UPI) -- The U.S. Federal Reserve on Tuesday cracked down on store gift cards with new rules to limit fees and govern the cards' expiration dates.
As of Aug. 22, stores that issue gift cards cannot impose a "dormancy, inactivity or service fee" unless the card has not been used for one year and the fees were "clearly and conspicuously stated on the certificate or card." In addition, fees are to be restricted to one per month, the Fed said.
The one-year time delay before imposing a fee will also reset any time the card is used or more money is put on the card.
A service fee, the Fed said, refers to routine account maintenance fees and "activity-based" fees, such as "balance inquiry, ATM and reload fees."
The Fed also said a gift card's expiration date must be "no less than five years" after the card was purchased or "after the date of the last load of funds."
