Beginning in mid-June, the Massachusetts law regarding gift certificates is changing in regards to the ability of companies to charge certain fees and when a customer is allowed to redeem it for cash.
The new law prohibits dormancy or administrative fees or any other fee that decreases the value of the gift certificate. This does not, however, apply to a gift certificate that can be used at multiple retailers, such as an American Express gift card for example.
These changes also address when a customer has the right to cash out the value of a gift card. For reloadable cards, a customer can cash out once the value falls below $5.00. For non-reloadable cards, there is no change to the law. Customers can continue to request a cash pay out when more than 90% of the gift card’s value has been redeemed.
For the text of this law, click here: CHAPTER 58 OF THE ACTS OF 2008
We will post any additional information from the state on our website when it becomes available.
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