Bill > A05865

This bill amends the New York General Business Law to modify cash out requirements for gift certificates. Specifically, the bill changes the minimum remaining balance at which a gift certificate can be redeemed for cash from five dollars to ten dollars. The bill removes language that previously exempted open loop gift certificates from this cash out provision, which means more types of gift certificates will now be subject to the ten-dollar cash out rule. Open loop gift certificates are typically prepaid cards that can be used at multiple merchants or locations, as opposed to closed loop gift cards which are limited to a single store or brand. By raising the cash out threshold and broadening the types of gift certificates covered, the bill aims to modify consumer protections and merchant obligations regarding low-value gift certificates. The change will take effect immediately upon enactment.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A5865