Although Wisconsin does not specifically regulate the

sale of gift cards, the federal government does. The

following information outlines the federal rules, 12

C.F.R. § 205.20:

Use gift cards as soon as possible to get full value.

Federal Reserve rules, 12 C.F.R. § 205.20, provide

consumer safeguards on most prepaid gift cards:

• Retail gift cards sold by retailers, stores, or

included.

Reloadable prepaid cards intended to be used like a

checking account substitute and not for gift-giving

purposes are covered by 12 C.F.R. § 1005 and 12 C.F.R.

§ 1026. They may carry the logos of MasterCard, Visa,

American Express, or Discover just like their “bank gift

cards” above.

Other types of prepaid devices are excluded:

• Telephone service cards.

Bank gift cards –one time fees for activation, cash-out,

or when additional cards are requested.

Expiration dates – must be at least five years from the

date of purchase on most cards. Cards given as a reward

or as part of a promotion for making a purchase can

expire in one year. The expiration date must be clearly

disclosed on the card.

Expiration date extensions – must be given on cards

date when money is added and verify it is at least five

years later. If not, request a replacement card.

Dormancy, inactivity, and service fees – are allowed

when a card has not been used for more than one year.

Fees may be charged once per month and there are no

limits on the fee amount. All fees must be clearly

Fees – may be charged when a card is purchased or

money is added, and must be clearly disclosed on the

card or its packaging.

Buying directly from known and trusted sources is the

best method. Inspect the card before buying it for

removed protective stickers or scratched off areas

revealing codes or PIN number and report damaged

cards to the seller. Avoid online purchase of unwanted

can be used. Verify the card’s remaining balance

and that transfer of ownership is allowed prior to

making the purchase. Request the original receipt

for verification of purchase in case the card is lost,

stolen, or should there be a problem.

restaurant. If a location closes, the next closest one

could be far away. Gift cards can become worthless

when a website, or company, files for bankruptcy or

closes. Should this happen:

honor gift cards in full or at a lesser value.

• Keep the gift card in a safe place in case it becomes

valid again through reorganization, buyout, or

reopening.

Read the fine print on the card, its packaging, website,

or printed mail/advertisement before buying. Request a

printed copy of fees, terms and conditions, and shipping

and handling charges before purchasing over the

phone. If you have concerns, buy through another

vendor or consider a different gift card.

Use gift cards as soon as possible to get full value. It is

not unusual to misplace or forget about gift cards.

all the money on the card has been used.

Contact the issuer if there is a problem – most issuers

provide toll-free numbers. It may be possible to have an

expired card honored or fees reversed.

Because Wisconsin does not regulate the sale of gift

cards, contact these federal agencies for more

information or to file a complaint:

Retailer and restaurant issued cards:

occ.treas.gov

For more information or to file a complaint,

Wisconsin Department of Agriculture,

Trade and Consumer Protection

(800) 422-7128 TTY: (608) 224-5058