The Federal Reserve Board announced the final rules included in the Credit CARD Act of 2009, regarding gift cards, which take effect August 22.

Better Business Bureau serving Central, Coastal and Southwest Texas recommends consumers understand the changes to avoid extra fees. “Many consumers have complained about excessive penalties charged on their gift cards,” said Carrie A. Hurt, president and CEO of BBB serving Central, Coastal and Southwest Texas.

“The new rules will prevent these unexpected costs and require any conditions to be clearly stated.”

The Federal Reserve Board’s rules will cover both store-specific gift cards and gift cards issued by credit card companies like Master- Card and Visa that can be used wherever the card is accepted.

They will prohibit fees related to dormancy, inactivity and other service fees unless all the following exceptions are met.

• The consumer has not used the gift card for at least one year.

• No more than one fee is charged per month.

• The fee has been clearly disclosed to the consumer.

Additionally, expiration dates for gift cards must be at least five years after they were issued or five years after the last day when funds were loaded, in the case of reloadable gift cards.

BBB recommends reviewing the following details when purchasing a gift card.

• Keep gift card receipts in case the card does not work.

• Review the terms and conditions for any fees before making a purchase.

• Ask if the gift card can be redeemed online.

• Ask if there are any location limitations for those using the card before purchasing it.

Check out the business at www.bbb.org to view the BBB Reliability Report.