Arizona Laws 44-7402. Gift card fees prohibited; underlying monies expiration date prohibited; civil penalty
A. A gift card may not be subject to a fee.
Terms Used In Arizona Laws 44-7402
- Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Fee: means any amount or value automatically deducted from the amount of the gift card due to a period of nonuse or inactivity. See Arizona Laws 44-7401
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Gift card: means any gift certificate, gift card or electronic gift card or any other medium issued or sold after October 31, 2005 for which the issuer has received payment for the full face value or full banked dollar value of the card for the future purchase or delivery of goods or services. See Arizona Laws 44-7401
- Issuer: means any person who issues or proposes to issue any security, except:
(a) With respect to certificates of deposit, voting-trust certificates, collateral-trust certificates, certificates of interest or shares in an unincorporated investment trust, whether or not of the fixed, restricted management or unit type, issuer means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which such securities are issued. See Arizona Laws 44-1801
- Property: includes both real and personal property. See Arizona Laws 1-215
B. The underlying monies on a gift card may not be subject to an expiration date.
C. A gift card or a code or device associated with a gift card may contain an expiration date with respect to the gift card or the code or device, but not with respect to the underlying monies, if the gift card contains a clear and conspicuous disclosure that the underlying monies do not expire and that the consumer may contact the issuer for a replacement gift card or a replacement code or device associated with the gift card. If the gift card is an electronic gift card, the disclosure shall be in the message to the consumer that contains the card number or code.
D. This section does not apply to any of the following:
1. A gift card that is distributed to a consumer pursuant to an awards, loyalty or promotional program when no money or other property with value has been given by the consumer in exchange for the gift card.
2. A gift card that is sold below face value to a nonprofit or charitable organization or that is donated to a nonprofit or charitable organization for fund raising purposes.
3. A card for prepaid telecommunication services, an electronic funds transfer card or a bank-issued debit or general purpose reloadable prepaid card not marketed or labeled as a gift card or gift certificate.
E. Notwithstanding chapter 10, article 7 of this title, the sole penalty for a violation of this section is a civil penalty of not more than five hundred dollars per card violation.