Gift Cards Just Got Better!!

You may have hesitated to give gift cards last year because of the confusion over fees and expiration dates. Now they’re better to give ─ and receive ─ because new protections went into effect in the U.S. in August. Here’s what you should know:

The gift card must be good for at least five years from the date of purchase. Money added must be good for five more years. If the card expires and there’s unspent money, you can request a replacement card at no cost.

Fees are limited and must be disclosed on the card or its packaging. Note: You can be charged a fee if you haven’t used it for at least a year.

Rules affect store gift cards and cards with a MasterCard, Visa, American Express or Discover logo. Some other types of prepaid cards aren’t included.

New rules don’t apply to cards purchased before August 2010. So if you have some sitting in a drawer, be sure to read the documentation that came with them. Look for fees for “dormancy,” “inactivity” or “maintenance.”

To make the most of a gift card, use it right away. If you aren’t going to use it, give it to a friend or swap it on a web site like www.plasticjungle.com.