Major players in the gift card business (companies who supply cards to retailers and administer them) either have or will be pulling out of the gift card business in the State of New Jersey. New changes in the New Jersey unclaimed property law allows the state to claim the value of unredeemed cards after just two years.
American Express has already removed their gift cards from New Jersey. Other companies plan to do so in the near future, including InComm, who supplies 2,500 retail locations with gift cards for brands such as Visa, MasterCard, and iTunes.
These companies believe it will be cumbersome and expensive to attempt to comply with the new laws. For starters, third party retailers distribute the cards, making it difficult for the companies to acquire accurate information regarding the purchasers and potential recipient of the gift card.
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