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It is an interest free loan to a company, with a high likelihood that it will never be collected.
by cortesoft 6y ago
It is an interest free loan to a company, with a high likelihood that it will never be collected.
- yummypaint 6y agoMany companies will deduct money from gift cards at regular intervals if they aren't used for some arbitrary period, so it can be worse than 0 interest even if the card is used by the recipient.
- shmoogy 6y agoI think this is illegal in (some states) so it's happening less and less.
- atlasunshrugged 6y agoI don't think they're allowed to do that anymore, see this article https://www.thebalance.com/new-gift-card-rules-for-expiration-and-service-fees-960186 https://www.thebalance.com/new-gift-card-rules-for-expiratio...
- boomboomsubban 6y agoThat article says they're allowed to charge an inactivity fee monthly after a year of no use.
- technothrasher 6y agoThat's federal rules. Many states, Massachusetts for example, do not allow inactivity fees.