Are all fees that can be imposed on a gift card considered to be service fees?
By regulatory definition, service fee means a fee for holding or using a gift certificate, store gift card or general-use prepaid card.
Examples of service fees are:
- monthly maintenance fees;
- transaction fees;
- reload fees; or
- balance inquiry fees
The following fees are not considered to be service fees, and you can be assessed the following fees during the first year if they are applicable:
- initial issuance fee;
- a cash out fee; or
- a fee to replace a lost or stolen card.