ESCHEAT AND GIFT CARD LAWS: SOUTH DAKOTA

Monday, November 19, 2012

SOUTH DAKOTA

Escheat Provision:

S.D. Codified Laws Ann. §43-41B-15

A gift certificate issued in the ordinary course of an issuer’s business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. The amount presumed abandoned is the price paid by the purchaser for the gift certificate.

 

S.D. Codified Laws Ann. §43-41B-40

The provisions of this chapter do not apply to open-loop prepaid cards for which the underlying funds do not expire and the records of the depository institution do not disclose the identity of the actual owner. For the purposes of this section, an open-loop prepaid card is an electronic payment device that meets the following conditions: (1) Is purchased or loaded, or both, on a prepaid basis for the future purchase or delivery of any goods or services; and (2) Can be used to purchase goods and services at multiple unaffiliated merchants or service providers.

 

S.D. Codified Laws Ann. §43-41B-42

Any unredeemed gift certificate or closed-loop card that meets the requirements of §43-41B-43 or any open-loop prepaid card or rewards card is subject only to any rights of a purchaser or owner of the gift certificate or card and is not subject to any claim made by any state acting on behalf of a purchaser or owner.

 

S.D. Codified Laws Ann. §43-41B-43

The provisions of this chapter do not apply to any gift certificate or closed-loop prepaid card that has no expiration date and that is not subject to a dormancy, inactivity, or service fee. For purposes of this chapter, a closed-loop prepaid card is an electronic payment device that meets the following conditions: (1) Is purchased or loaded, or both, on a prepaid basis in exchange for payment for the future purchase or delivery of goods or services; and (2) Is redeemable upon presentation to a single merchant or an affiliated group of merchants for goods and services.

SOURCE: National Conference of State Legislatures


PLEASE NOTE:  Please note the summaries should be used for general informational purposes and not as a legal reference. DropZone Marketing is unable to answer questions or provide guidance to business owners regarding gift cards and gift certificate laws and practices. If you have questions regarding issuing or redeeming a gift card or gift certificate or a retailer’s practices, please contact the Office of the Attorney General in your state.

A POP-UP!!!

No one likes a pop-up unless it's fun and exciting and delivers great info! You'll never receive spam from us....EVER! We are in the business of giving away free marketing information to help your business. Just good stuff. How novel! 

You're Now Connected With Us Forever (Insert Evil Laughter)... Just kidding! You can opt out at anytime ;-)