Trade
Gift certificates: cash redemption
California lets sellers use older gift certificates with outdated cash-redemption language through 2028, subject to notice and recordkeeping rules.
Gift certificates worth under $15 remain redeemable for cash even if older cards print a lower threshold. The law prevents issuers from being penalized solely for that outdated printed language when they meet specified conditions.
What the law does
- Allows issuers to sell gift certificates printed or manufactured before April 1, 2026, with a lower printed cash-redemption threshold through December 31, 2028.
- Requires a conspicuous notice in at least 24-point font at every point of sale, loading, or cash-redemption device stating that gift certificates worth under $15 are redeemable for cash.
- Requires issuers to keep business records reasonably showing the certificate's manufacturing or printing date.
- Shields compliant issuers from civil or criminal penalties solely because the certificate prints a lower cash-redemption threshold.
Who it affects
- Gift certificate issuers and retailers that sell, load, or redeem gift certificates.
- Consumers holding gift certificates with a cash value below $15.
Context
The statewide under-$15 cash-redemption rule takes effect April 1, 2026.