BUFFALO, N.Y. — As we head into the holiday shopping season, many people may opt to just send gift cards. And if you get one you should make sure you check the expiration date to use it before that listed date.
But if there is no expiration date and they're older, it may be a different story with the State of New York involved. It's something 2 On Your Side just found out Tuesday night.
It was this reporter's confusion last night as Wegmans store managers told Ron Plants they could not process the two Wegmans gift cards, which totaled $75 that he intended to be applied to the purchase.
It clearly stated on the back of the card fine print, "Card has no expiration date." That is unlike some cards, which clearly do list an expiration date which is usually five years under federal law.
The managers correctly explained the cards' funds had probably been sent to the state.
And they were right. The cards, which were over five years old, fell under the state's Abandoned Property Law, as confirmed by Kelly Kuracina, who is the Director of the Office of Unclaimed Funds under the NYS Comptroller's Office.
"We collect those funds every year," Kuracina said.
The state's unused gift card funds collection in just 2023 amounted to $27 million. Nearly $2.6 Million was specifically from Erie County.
So this reporter is not all alone as a forgetful ding-dong. Kuracina tried to help Plants understand.
"You come across it in a Christmas card that you didn't open. It does happen. And the reason that we have the abandoned property law with the five-year dormancy is to protect people's money so that those cards don't expire. But that they can't end up service charging them after a period of time that would ultimately reduce the balance," Kuracina said.
In Plants' case Wegmans, a call to their 1-800 number on the card, will apply to the state for his $75. He was told to expect a check to be mailed within a few months. He fortunately had the card's account number and PIN on the back.
You can also apply directly on the state comptroller's website if you have that information.
So what about E-gift cards sent to a phone or email?
Kuracina said, "If it was purchased as a gift card, marketed as a gift card, and delivered digitally, all the same rules apply. It doesn't matter if you got a physical card, or a piece of paper, or if t's digital. All the same rules apply. If it was a bank, there's a little bit different dormancy period associated with that. They have to do some things related to account balances."
Associate Professor of Marketing Studies Charles Lindsey said stores in general love to sell gift cards.
"It's really a revenue driver for retailers," Lindsey said.
He also points out "up to 20 percent of gift cards go partially unused, and up to somewhere between 5 and 10 percent are completely unused."
For more information you can contact the New York State Comptroller's Office.