Recent statistics predict that $87 billion in gift cards will be exchanged worldwide this year.  Recent United States legislations were enacted to protect consumers for hidden fees and conditions often found with gift cards. 

The Credit Card Act of 2009 makes gift cards more consumer friendly.  This was accomplished by eliminating those hidden fees for the initial year you have the card.  No longer can stores charge you activation fees and monthly fees that you were not even aware of.  The Credit Card Act also extends the expiration date on gift cards to being no less than five years from the date of purchase.  Though the card itself can still expire, its monetary value will not.  Gift card holders can simply contact their merchant for a replacement card once it has reached its printed expiration date.

It is important for consumers to understand that fees can still be imposed on gift cards after the first year.  The rules only limits these fees for the first year, but after that, the fees can be excessive.  The new rules also mandate that financial terms and conditions be clearly disclosed on the gift card packaging.  Understandably, gift card issuers can charge you fees and set expiration dates as long as it is clearly indicated on the packaging.  It is important for consumers to carefully review these terms before purchasing.   The new laws do not apply to prepaid debit cards and rebate cards.