We believe Visa gift cards would be considered “stored-value cards” under the Illinois RUUPA, since they are redeemable at multiple unaffiliated merchants — unlike “gift cards,” which are redeemable at a single merchant or affiliated merchants.

Under the Illinois RUUPA, a “stored-value card” is a “card . . . issued on a prepaid basis primarily for personal, family, or household purposes to a consumer in a specified amount, whether or not that amount may be increased or reloaded in exchange for payment . . . and redeemable upon presentation at multiple unaffiliated merchants for goods or services or usable at automated teller machines.”

“Gift cards” are excluded from this definition. Under the Illinois RUUPA, a “gift card” is a “a record evidencing a promise made for consideration by the seller or issuer of the record that goods, services, or money will be provided to the owner of the record to the value or amount shown in the record” that meets other qualifying conditions, such as not charging dormancy fees. (The significance of the Illinois RUUPA’s distinction between stored-value cards and gift cards is that stored-value cards are subject to unclaimed property reporting, while qualifying gift cards are not.)

Visa’s website indicates that Visa gift cards are accepted “anywhere Visa is accepted.” Consequently, we believe Visa gift cards would be considered “stored-value cards” and not “gift cards,” since they may be used at multiple unaffiliated merchants.

For resources related to our guidance, please see:

• Illinois RUUPA, 765 ILCS 1026/15-102(30) (“‘Stored-value card’ means a card, code, or other device that is:
  

  (A) issued on a prepaid basis primarily for personal, family, or household purposes to a consumer in a specified amount, whether or not that amount may be increased or reloaded in exchange for payment; and

  (B) redeemable upon presentation at multiple unaffiliated merchants for goods or services or usable at automated teller machines; and
   

  ‘Stored-value card’ does not include a gift card, payroll card, loyalty card, or game-related digital content.”)
   

• Illinois RUUPA, 765 ILCS 1026/15-102(11) (“‘Gift card’ means a record evidencing a promise made for consideration by the seller or issuer of the record that goods, services, or money will be provided to the owner of the record to the value or amount shown in the record that is either:
   

  (A) a record: (i) issued on a prepaid basis primarily for personal, family, or household purposes to a consumer in a specified amount; (ii) the value of which does not expire; (iii) that is not subject to a dormancy, inactivity, or post-sale service fee; (iv) that is redeemable upon presentation for goods or services; and (v) that, unless required by law, may not be redeemed for or converted into money or otherwise monetized by the issuer; or

  (B) a prepaid commercial mobile radio service, as defined in 47 C.F.R. 20.3, as amended.”)

   

• Illinois RUUPA, 765 ILCS 1026/15-102(24) (“‘Property’ . . . (B) includes property referred to as or evidenced by: . . . (ii) a . . . stored-value card [and] (C) does not include: . . . (iii) a gift card; . . . .”)

• Illinois RUUPA Administrative Rules, 74 Ill. Adm. Code 760.230(a) (“Gift cards as defined in the Act are exempt from being reported and remitted as property that is presumed abandoned. Gift cards are excluded from the definition of property in the Act (see 765 ILCS 1026/15-102(24)(C)(iii)).”)

• Illinois RUUPA Administrative Rules, 74 Ill. Adm. Code 760.220(a) (“Unless otherwise exempted by the Act or this Part, the net card value of a stored value card is required to be reported and remitted under the Act as property that is presumed abandoned pursuant to Section 15-206 of the Act.”)

• Getting started with Visa Gift cards (“You can use your gift card anywhere Visa is accepted, supermarket, gas station and even online. And you can make purchases up to the amount that’s on the card.”)