Gift cards with no expiration date over 5 years old may fall under the state's Abandoned Property Law, leading funds to the state. Unused gift card funds collected by NYS in 2023 totaled $27 million, with $2.6 million specifically from Erie County. E-gift cards are also subject to similar rules as physical gift cards, including dormancy periods.
The Impact on Consumers and Businesses
Stores benefit greatly from selling gift cards, with up to 20% partially used and 5-10% completely unused. Retailers see gift cards as a significant revenue driver.
The Legal Landscape: Abandoned Property Laws
E-gift cards are under scrutiny as well, falling under the same regulations as physical gift cards. With state laws potentially leading funds to the state, it is essential for consumers to stay informed on expiration dates and regulations.
Maximizing Revenue with Gift Cards
Retailers maximize revenue through gift card sales, but there are risks associated with unused or partially used funds. By understanding the regulations and consumer behavior, businesses can effectively leverage gift cards as a revenue stream.
Conclusion
In conclusion, gift cards play a significant role in the retail industry, both benefiting businesses and potentially leading to unclaimed funds for states. It is crucial for consumers to be aware of the regulations surrounding gift cards to ensure they utilize their funds effectively.