eCommerce companies sell across many states and have to deal with regulations anywhere they sell. For merchants considering bulk digital gift cards, escheat can be a tricky part of your decision.
Each state has escheat law, which determines what happens to unclaimed property. Escheat includes many types of abandoned property - including expired gift cards.
The Credit Card Accountability Responsibility and Disclosure (CARD) Act ensures gift cards cannot expire before five years and generally limits many fees until after 1 year of inactivity. But the CARD Act is federal law and only acts as a foundation.