Run date: November 14, 2010

By Eve Mitchell
Business + Technology, Contra Costa Times

People who buy or receive gift cards no longer have to worry about expiration dates that can make the cards useless months after they were activated under new rules rolled out in time for the holiday shopping season.

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They have the biggest impact on bank-issued gift cards that can be used at different stores.

“The (rules for) gift cards do apply more to cards that are issued by banks that carry a Visa, MasterCard, Discover Card or American Express logo — as those were the kinds that typically had expiration dates and dormancy fees that chipped away at the value,” Woolsey said. “Most store gift cards don’t have expiration dates or fees, but they would also be covered by these restrictions in case they did.”

The rules do not prevent bank-issued cards from charging purchase fees that typically add a few dollars to the cost of the card. While gift cards linked to stores, restaurants and other individual merchants generally do not have purchase fees, they can only be used at that particular business.

“If I’m going to buy a gift card from Target, I’m going to shop at Target, and Target is going to make money. They don’t need to make money on the gift card” with fees, said Shelley Hunter, founder of Giftcardgirlfriend.com.

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