Check the store's . 8California Civil Code Section 1749.45(b). Each retail purchase of prepaid mobile telephony services in California. The Civil Code also is available on the Internet at http://leginfo.legislature.ca.gov/ under the "California Law" button. Buyers should be aware when purchasing "unaffiliated, multiple seller" cards that not all questions about the terms of these cards have been answered by the Legislature or the courts. Plans, rates & services are subject to change without notice & are not available in all locations or for all phones. 27For example, a supermarket such as Safeway may sell Borders gift cards usable only for merchandise at Borders stores. While the card allows the recipient to shop a variety of stores, the value of the gift card may be reduced or eliminated by expiration dates and dormancy fees. TIPS FOR PURCHASERS OF GIFT CERTIFICATES OR GIFT CARDS. Since California's Legislative Counsel has concluded that the issuer (not the holder) may choose between these two methods,24 the likely answer is that the issuer may set its own policy. Common Reasons for Prepaid Expenses Access lines when imposition of the surcharge would be in violation of the Constitution of the United States, the United States Code, or the laws of the State of California. You can check your debit card balance 24 hours a day at no cost by using automated account information via the toll-free customer service number: 1.866.692.9374. Refills of $10 to $24 expire in 30 days. Where you submit your claim depends on the reason for the refund and where the purchase was made. The 911 and 988 surcharges are flat fees that apply to each retail transaction involving a sale of prepaid MTS to a prepaid MTS consumer. For prepaid cards Federally regulated financial institutions can't set an expiry date on funds loaded onto prepaid cards they issue. If the sale is also subject to sales or use tax, the sales/use tax does not apply to the 911 surcharge, 988 surcharge, or local charge amounts. Can the holder of a gift card that is subject to a service fee use it to purchase a gift card that is not subject to a service fee? The court found that the SOUL30 pass looked less like a prepaid spin class (not covered by the CARD Act) and more like a $30 gift card that could be applied toward the purchase of a spin class (covered by the CARD Act). U.S. The first law to regulate gift cards was the Illinois Unclaimed Property Act. In general, only one 911 surcharge and one 988 surcharge apply to each access line. will expire . Access lines for which no charges are billed by a service supplier to a service user. To register online for a prepaid MTS account, visit our Taxpayer Online Services Portal. The class passes offered by both companies lie somewhat in a legal gray area. Calls are billed in one-minute increments. Q.8. No international roaming allowed. Can prepaid cards expire? The retail store is generally not the owner or operator of the kiosk, and as such, is not responsible for the collection of the 911 surcharge, 988 surcharge, and any applicable local charges. People expect that they will be able to redeem the full value of gift cardsnot that they will expire in short order or be subject to management fees. Therefore, because your customer provided a mobile phone number that is associated with a California location, the online sale is subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). Home; About; Menu; Contact We'll issue you a replacement Gift Card free of charge if your "valid-thru" date has passed and you still have available funds remaining. Receive 24-Hour Roadside Assistance. Where can I get a copy of the gift certificate law? Pricing and services apply to the 2023 service season. If you hear rumors of bankruptcy, it's best to use your gift card as soon as possible. No cash or ATM access. The cell phone and prepaid airtime minutes are sold for a single price of $119.99 (bundled transaction); however, you provide your customer with an invoice that states that the actual selling price of the cell phone is $99.99. Airtime minutes will be deducted plus the cost of the International call. Service may be suspended/terminated if used in violation of Acceptable Use Policy. Can a gift certificate or gift card contain an expiration date? The gift certificate law states that a seller must either redeem a gift certificate or gift card sold after January 1, 1997, for its cash value, or replace it with a new certificate or card at no cost.18 However, California's Legislative Counsel has concluded that a seller is not required to redeem a gift certificate in cash when requested by a consumer.19 Thus, some gift certificate sellers redeem the gift certificate for cash or a combination of merchandise and cash, while some issue a new certificate for any balance remaining after the original certificate is redeemed. Daily deals like Groupons allow you to use the original amount you paid into them after. Yes, they do. Both Californian and federal law prohibit the sale of gift cards and certificates in a deceptive manner, so the company or person selling the card can't conceal fees, conditions or restrictions. Prepaid services remain with the service address originally purchased for & are NOT transferable to another service address during the same season in which they were purchased. CorePower Yoga structured their gift certificates slightly differentlyi.e., the passes to yoga classes were not tied to any specified dollar amount. Lessons for selling with an expiration date The CARD Act provides a compelling case study into the need for every small business owner to hire a good business law attorney. For instance, the card issuer cannot charge a dormancy or inactivity fee on a gift card unless there has been no activity for one year and the card clearly states its policy toward that fee. When buying one, you can pay the entire amount up front, or you can arrange to make payments with a three, five, or 10 year plan. The 911 surcharge and 988 surcharge applies to the transaction and the sales tax and local charges apply to the entire bundled charge for the prepaid phone and airtime. Service suppliers may elect to combine the 911 and 988 surcharges into a single-line item on the service user billing. Therefore, your online sale to the Arizona customer is not subject to the 911 surcharge, 988 surcharge, or local charges, even though his mobile phone number is associated with a California location. These include access lines to: (See Revenue and Taxation Code (RTC) section. However, cards with a balance of less than $10 may be redeemed for the remaining value if the consumer asks. Q.4. 18California Civil Code Section 1749.5(b)(1). 2004 ch 319 (AB656) [Assembly Floor analysis August 11, 2004].) In addition, ask about the locations where the unspent portion of the value can be redeemed, and the manner in which that amount can be redeemed. Get Milestone Servicing. Card holders either had to file a claim with the bankruptcy court to redeem their credit or say goodbye to their gift card credit. A customer purchases prepaid wireless airtime from your website. In our opinion, the 2008 amendment to this section clarified and affirmed the Attorney General's position by limiting the exemption to "perishable food products," not just "food." or Wi-FI services. Before you buy, know the return and exchange policy. Expiration dates, service fees and dormancy fees are prohibited by law for single-store cards, with limited exceptions. In a 2016 report by the Consumer Financial Protection Bureau, some consumers complained that they had money on their cards when they expired but the issuer didn't reissue cards that included those balances. In a 2016 report by the Consumer Financial Protection Bureau, some consumers complained that they had money on their cards when they expired but the issuer didn't reissue cards that included those balances. In addition to the cost of the funeral, you should expect to pay some other fees. As with food gift cards, however, the expiration date must be printed on the front of the card in 10-point type. What happens if the seller of the gift certificate or gift card files bankruptcy? . More resources for both sellers and service suppliers: We strive to provide a website that is easy to use and understand. The amounts for the 911 surcharge, the 988 surcharge, and local charges should be separately stated on the invoice, receipt, or other similar document that is provided to the prepaid consumer, or otherwise disclosed electronically to the prepaid consumer, at the time of the retail transaction. Sellers that file "Chapter 11" (reorganization) bankruptcy intend to stay in business, so they typically will ask the bankruptcy court for permission to honor gift certificates in an effort to maintain good customer relations. 12While the term "capital letters" is found in the statute, we deduce that this requirement would not apply if the expiration date listed consists of only numbers. The service supplier shall remit the combined surcharges collected to CDTFA in separate amounts for each surcharge. The plaintiff in the case successfully argued that the certificates were issued in a specified amountthat is, the series certificates (the Plaintiffs term of art for the prepaid spin cards) could be used to purchase classes up to the amount specified on the certificate. The rules for gift cards are different. Compare T-Mobile's prepaid phone plans, including unlimited talk, text, and data all on our 5G network to find the best plan for you and your family. If the balance is $10 or more, a business doesn't have to redeem a gift card or the balance left after a purchase for cash. For example, if the rate in the ordinance per month per access line is: Defending claims regarding the validity of their ordinance. Because the federal regulation is so new, specific issues of pre-emption have not been decided by the Board of Governors of the Federal Reserve system, nor have they been litigated. As with sales and use tax, the local charge rate varies depending on the location of the sale and in some instances local charges will not apply (for example, sellers with de minimis sales of prepaid MTS of less than $15,000 during the previous calendar year are not required to collect local charges). Forgot Password / New User. Check the expiration date. Most of those locations can also take your passport photo. Law Advice; Insurance Advice; Retirement Planning Advice for Women; 10 Tips for Filing a Catastrophic Injury Laws Yes, it is perfectly legal. First published on April 22, 2015 / 6:41 PM. Where Should I Get My Mom a Gift Card To? A telephonic service provider/service supplier; Any person providing Voice over Internet Protocol (VoIP) service line with access to the 911 emergency communications system and 988 suicide and crisis lifeline; A service user that did not have the surcharge collected by a service supplier; or. If you are planning to travel abroad soon or stay in touch with loved ones who live abroad, there are plenty of great international service options with AT&T PREPAID. A Guide to Creating Custom Easter Baskets. (Stats. Federal banking regulators recently have ordered that national banks provide better disclosure of these fees, including placing expiration dates on the front of cards; disclosing any monthly maintenance or inactivity fees; and providing a phone number or website for detailed information. Click here if you have questions about your card. You sell a SIM card loaded with prepaid airtime for a single price. The gift certificate law requires the issuer of a gift certificate or gift card to honor it, but also limits that obligation to either redeeming the certificate or card in cash or replacing it with a new one. North Carolina law also includes additional restrictions on gift certificates not covered here. Funds on the cards don't expire, though. Give Congratulations to Someone You Know with These Thoughtful Gift Ideas. Explore guides to help you plan for big financial goals. Your 30,000 and 45,000 mile services are covered. Dispute the validity of the local tax ordinance. In general, you should charge and collect local charges for the city and/or county where your business is located. California Business and Professions Code Section 17538.9 permits certain fees and practices with respect to prepaid calling cards. (503) 427-2746. Atty. NOTICE: We attempt to make our Legal Guides accurate as of the date of publication, but they are only guidelines and not definitive statements of the law. The law prohibits offering any gift certificate, store gift card, or general-use prepaid card with an expiration date of less than five years. The 911 and 988 surcharges apply to all telecommunication access lines with the exception of: Because medical alert devices and inmate call systems generally do not provide access to the 911 emergency communications system or the 988 suicide and crisis lifeline, the 911 and 988 surcharges usually will not apply. As a result, these types of gift cards may not be your best bet. The app can only activate a T-Mobile prepaid line. In Illinois, the combined effect is basically that gift cards and certificates should never expire. For use in the U.S. only. If the balance is $10 or more, a business doesn't have to redeem a gift card or the balance left after a purchase for cash. Businesses also are increasingly offering their customers the option to buy packagesfor instance, a pack of 5 classes at your local gym. You sell a prepaid wireless refill card online that is loaded with 400 prepaid wireless minutes to your customer who downloads it directly to his cell phone. There are two main types of ways to pay for phone service: postpaid, where you pay at the end of the month, and prepaid, where you buy service before you use your phone. You want to give a friend a gift, but your friend "has everything" or you don't know what to give. If you want to change state in Restaurant Gift Certificate with no confusion, DocHub is a perfect instrument for this kind of tasks. Ingresa. characters. To determine local charges properly for your online sales, you should charge the rate in effect based on the above known California location or address of your customer in the order listed. Cancelling a prepaid contract 10-day cooling-off period. Use any remaining value on a gift certificate or gift card. The amount of airtime in the bundled transaction is considered minimal because it is 10 minutes or less. This exception is applicable only provided that each contributor is given a full refund of the amount paid where: the funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate; the time in which the recipient may redeem the funds is clearly disclosed in writing to the contributors and the recipient; and the recipient does not redeem the funds within the time disclosed. Statutes 2007, chapter 640 (SB 250). For postpaid accounts, check out T-Mobile eSIM. can prepaid services expire in california. Such gift cards may have expiration dates if that fact is printed in 10-point type on the front of the card. Emergency Telephone Users Surcharge Regulations, Publication 39A, Emergency Telephone Users (911) Surcharge and Prepaid 911 Surcharge. Sales of prepaid data service plans (minutes) that can be used for data, text, or as cell phone airtime minutes are subject to the 911 surcharge, 988 surcharge, and local charges apply (if applicable). Activate your card Call the activation number on the card mailer or the customer service number on the back of your card. Both state and federal law now regulates gift cards and certificates. If balance is insufficient to renew all lines on your account for 120 days, all lines will . CorePower Yoga successfully defended an attempted class actionand the case was dismissed early in the litigation. The 911 surcharge, 988 surcharge, and local charge rates may be viewed on our webpage (see 911 Surcharge, 988 Surcharge, and Local Charge Rates for Sellers of Prepaid Mobile Telephony Services (MTS)). This is important even for "single seller" cards, many of which can be purchased at an unaffiliated location.27. Features available until 30th day; if sufficient balance, services automatically renew at expiration. The 911 and 988 surcharge apply to all telecommunication access lines (wirelines, postpaid wireless lines, and VoIP lines) subscribed in California that allow the user access to the 911 communications system and 988 suicide and crisis lifeline. They have relatively high priority among unsecured creditors in a Chapter 7 case, and may receive some percentage of the certificate's or card's value, but only if the bankruptcy estate has enough assets to pay claims. Each retail purchase of prepaid mobile telephony services in California. This argument has not been tested, and it is doubtful that it would be successful. For information on filing a claim, and other basic information on bankruptcy, see "Consumer Tips on Retail Store Bankruptcies," under the "Publications" tab at www.dca.ca.gov, and then go to the "Consumer Publications" section, for the list of consumer publications. You sell prepaid wireless airtime for $50. Gift Card Granny examined these laws for California's shoppers. Does an unredeemed gift certificate escheat to the state? Live Chat support is not available for Prepaid Services. Just like 7-Eleven SpeakOut's plan, this is a great option for an emergency phone or to keep in contact with a child or elderly parents. Reallocating local charges that were collected in error for up to two past quarters from the date of knowledge. Refunding taxes when ordered to under the local ordinance. No, unless: Expiration of the underlying funds (as opposed to the expiration of the card itself) is the later of (1) 5 years after the certificate was initially issued or the date on which funds were last loaded to a store gift card or general use prepaid card or (2) the expiration date for the . On the other, the law clearly would not apply to a $100 monthly gym membership (after all, how could it? 2004 ch 319 (AB656) [Assembly Floor analysis August 11, 2004].) Not if it does not contain an expiration date. 9One argument has been made that sellers in a single mall are actually "affiliated" under the law because they have each agreed to honor the cards. California Department of Tax and Fee Administration. This sale is subject to the 911 and 988 surcharges since your records (that is., the customer's billing address) show that customer is located in California. The price of the cell phone component of the bundled charge is not disclosed to the prepaid MTS consumer. The store may redeem it for another card with the remaining value. Responding to consumer claims for refunds. 7. Prepaid wireless refill or top-off cards. Prepaid wireless cards compatible with pay-as-you-go cell phones. It is a "prepaid contract" when any part of the contract occurs in the future. Data Terms: Customers who use more than 30GB of data during a billing cycle on a line will have speeds reduced. That $80 gift card cannot have an expiration date of less than 5 years from the date of purchase. Gift Cards don't have expiration dates.There is a "valid thru" date indicated on the front of each Gift Card, which means it can't be used after this date. 4California Civil Code Section 1749.5(b). 2California Civil Code Sections 1749.45-1749.6. Best Prepaid Phone Plans for Seniors. For example, on money orders more than a year old, WesternUnion charges a $2-per-month service fee for each month after the first 12 up to a maximum of $144. The key takeaway was that the federal CARD Act applies to gift cards and other certificates that are linked closely to a specified cash dollar amount. 112 Code of Federal Regulations, Section 205.20. 911 Surcharge, 988 Surcharge, and Local Charge Rates, Electronic Funds Transfer (EFT) - Frequently Asked Questions (FAQ's), Filing Claims for Refund - Special Taxes and Fees, Local Prepaid Mobile Telephony Services Collection Act (42100-42111), subdivision (e) of Revenue and Taxation code (RTC) section 42020, Pay-As-You-Go cell phone with minutes/airtime, Prepaid telephone calling cards vs. prepaid wireless calling cards, SIM cards sold with prepaid wireless airtime/minutes, Prepaid products and services sold for use outside of California, Kiosks selling prepaid top-up airtime/minutes, Consumers that want to file a claim for refund for local charges, Telecommunication Service Suppliers (Service Suppliers), Medical alert devices and inmate call systems, Multiple Service Suppliers Furnishing Services Using the Same Access Line, Local Prepaid Mobile Telephony Services Collection Act Law, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2023, New 988 Surcharge and Rates for the 911 and 988 Surcharges Effective January 1, 2023, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2022, Emergency Telephone Users (911) Surcharge 2022 Rate and Mandatory Online Filing for Service Suppliers, Collection of Local Charges Extended through December 31, 2025, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2020 through December 31, 2020, Collection of 911 Surcharge Required by Sellers Beginning January 1, 2020; Collection of Local Charges by Sellers Extended through December 31, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2021 through December 31, 2021, The Emergency Telephone Users Surcharge Return Will Move to Our New Online Services System Effective November 9, 2020, Important Notice Regarding Your Emergency Telephone Users Surcharge Return, Changes to the Emergency Telephone Users (911) Surcharge Effective January 1, 2020, Information for Local Jurisdictions and Districts, Total due on sale (Price of Phone + Airtime + 911 Surcharge + 988 Surcharge + Local Charges + Sales Tax), Prepaid phone (see computation below for amount of sales tax included), 1000 minutes of airtime (911 Surcharge and local charges included), Local charges included in selling price (see computation below), Total due on sale* (price of phone + price of airtime), Total due on sale (single price of phone and airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), Prepaid phone + 10 minutes of airtime (or $5 in airtime), Total due on sale (price of phone + airtime + sales tax), Prepaid smartphone and 60 minutes of airtime, Total due on sale (prepaid smartphone and 60 minutes of airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), SIM card + one month unlimited talk & text, Total due on sale (SIM card + one month unlimited talk & text + 911 Surcharge + 988 Surcharge + local charges), Selling price of prepaid wireless airtime card. For complete terms and conditions, see the U.S. Bank Visa Gift Card Cardholder Agreement. The customer's billing information shows they live in Sacramento, CA. Postal money orders are an exception they never expire and never lose . Should You Give Someone a Gift for Saint Patricks Day? However the California law does not apply to multiple retailer gift cards such as mall gift cards or bank gift cards including Visa and MasterCard gift cards. An easier way to think about this is, if the gift card can be used like . It's not like a credit card is a bunch of bananas that will eventually go bad, so why can't you keep using the card forever? Daily deals like Groupons allow you to use the original amount you paid into them after they expire. Services are scheduled only after payment is received. Further, you should charge your customer any applicable local charges at the rate listed for the City of Sacramento. If your prepaid card expires while you still have money on it, you may be able to request a replacement card to access the funds. Refills of 25 to $99 expire in 90 days. 2. The 911 and 988 surcharges apply to partial month billings in the full amount. An expiration date on a credit card is simply the date on which the card itself will no longer work and must be replaced. Expiration dates, service fees and dormancy fees are prohibited by law for single-store cards, with limited exceptions. This exception was modified effective January 1, 2005, to clarify that a redemption date was not another name for an expiration date. SoulCycle classes differed in prices depending on the geographic market. The fatal flaw was that the passes for the spin classes too closely tracked a cash value. In the case of a gift card, ask the seller if value can be added to the card or if it can be "reloaded." (Statutes 2003, chapter 116, Section 4 (AB 1092).) But not all subscription plans are created equally under the law. What do you Give People for Cinco de Mayo? Gen. 243 (2000). It is the opinion of this office that, where the laws are inconsistent, the law that is most protective of consumers should be followed. The rash of bankruptcies and other difficulties facing the state have led to changes and reinforcements of laws applying to gift cards in California. 1 in our ratings of the Best Cheap Cell Phone Plans of 2023, the Best Prepaid Cell Phone Plans of 2023, and the Best . The cash equivalent value of the class passes was clearly displayed when purchased by the consumerthat is, if a customer purchased a series certificate that can be used to purchase classes valued at $30, the series certificate was displayed as SOUL30., The federal guidance accompanying the CARD Act provides two helpful illustrations. Monthly subscriptions. Consider purchasing a gift certificate or gift card from a retailer for use with it and its affiliates. Browse phones now! Never give out your personal information to anyone, or you could have your benefits stolen. A gift certificate or gift card without an expiration date is valid until it is redeemed or replaced.20, Notwithstanding any policy of the seller, effective January 1, 2008, a gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash (not a new certificate or merchandise) for its cash value.21 Cash for purposes of this section includes currency or check.22 Where a seller accepts funds toward a gift certificate from one or more contributors as a gift for another person (the "recipient"), the seller must give each contributor a full refund of the amount paid toward the certificate if the time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to contributors and recipient and the recipient does not redeem the funds by the time disclosed.23. The sale is subject to sales tax because it is a sale of tangible personal property. The price of the cell phone component of the bundled charge is disclosed and provided to the prepaid MTS consumer on a receipt, invoice, or other written documentation. You are a seller located outside of California who makes online retail sales of prepaid MTS. The number of access lines subject to the 911 and 988 surcharges in a PBX phone system shall not exceed the total number of concurrent outbound calls that can be placed to the 911 emergency communications system or 988 suicide and crisis lifeline at the same time. Enforcing and auditing the collection and remittance of local charges on prepaid MTS by service suppliers (see. What Does the Expiration Date Mean on a Credit Card? Additional lines of unlimited data cost $30 each on the standard plan and $40 on the more expensive plan. Get the best pay as you go phone plan or prepaid phone plans with the latest phones. Unused prepaid services expire 12/31/23. Sounds innocent enough, right? Get browser notifications for breaking news, live events, and exclusive reporting. Maybe not. First, not covered by the law were gift cards that could be redeemed for a specific good or service, or experience, such as a spa treatment, hotel stay, or airline flight. By comparison, the law does cover gift certificates that can be applied toward the purchase of a specific good or service, such as a certificate or card redeemable for a spa treatment up to $50.. Simple steps to get started 1. Second, if the sale is a "known address transaction" it occurs in California and is subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). The law also places general limitations on fees. So don't assume a store will allow you to return an item if you change your mind. How can I check the current balance in my EDD Prepaid Debit Card account? But issuers may begin applying fees if a money order goes uncashed for a year or more. Prepaid Unlimited Plan $10/mo. The 911 and 988 surcharges still apply still applies to the transaction and sales tax applies to the entire charge. Use your Mastercard Gift Card and Mastercard Virtual Gift Card everywhere Debit Mastercard is accepted in the US. Purchase fee is $3.95 per Gift Card at the branch. If your prepaid card expires while you still have money on it, you may be able to request a replacement card to access the funds. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. While those cards could not contain any expiration date or fees, there may be a question about where any unspent portion can be redeemed. We offer 4 prepaid data plans for tablets and mobile hotspots. This means that if your card expired but there's still money left on it, you can request that the card issuer sends you a new card (you may be charged a fee) or they may put the remaining balance on a cheque for you. 2023 CBS Broadcasting Inc. All Rights Reserved. In California, for example, it's against the law for store gift certificates and gift cards to have an expiration date or dormancy fees (except under certain circumstances), and if the balance on the card is less than $10, you can redeem it for cash.