New York Commences Law To Let You Cash Out Old Gift Cards

Gift cards make ideal presents for that someone who swears by retail therapy or people you don’t know that well. One gripe, however, is that you may have accumulated so many of these that you’ll have pockets of unredeemed money left on the cards or may be charged fees for using them.

Now, thanks to new legislation passed in the state of New York, residents can truly get the most bang for their buck as it allows them to exchange their gift cards for cash if the remaining value on the card is under US$5.

The law, signed by Governor Kathy Hochul on December 10, 2022 (just in time for the holiday season), notably also bans lining gift cards with hidden fees—prohibiting charges for activation, latency, renewal, handling, access, administration, reloads, dormancy, service, and redemption, “and any other fee of any kind.”

Shoppers concerned about not being able to use up their holiday gift cards in time can rest assured that New York State has additionally enforced a nine-year minimum usability period from the time a gift card was purchased, which means you can stretch their use for almost a decade.

There’s one exception for gift cards with redemption options spanning multiple independent merchants, which may ask for a one-time activation fee of no higher than US$9.

The hope is that recipients can enjoy the gifts’ full rewards even as time passes on without worrying about the balances depleting.

All told, customers should also check the date of issue of their gift cards, as it will determine their true expiration date. The legislation will be most beneficial for holders of gift cards issued from December 10, 2022, which can only expire at least nine years from the date of purchase.

Meanwhile, gift cards issued between August 22, 2010, and December 9, 2022, will have a minimum expiration date of five years from the date of purchase.

New York State Assemblyman Nader Sayegh describes: “New York State is leading the nation in protecting consumers and ensuring recipients can enjoy the full value of a gift they receive.”

“Thanks to Governor Hochul, gift cards now have a longer shelf life and recipients are afforded more time to find the perfect gift to treat themselves as their gift giver intended,” shares Robert J. Rodriguez, Secretary of State.

For more details about your gift cards’ expiration windows, please check here.

[via Village Voice and Thrillist, cover photo 113980818 © Mumemories | Dreamstime.com]