This probably belongs in HD, but I like FWF more. yesIsearched. Credit to liquimatic at SD.

Effective January 1, 2008, "any gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash for its cash value" (CA SB 250, approved by the governator and filed Oct 13, 2007).

Supposedly some stores already do this, but now there's a law for all. Good for the consumer IMHO (I have a few GCs < $10 I haven't used because I don't shop at those stores much), also opens a small door for shenanigans, such as buying GCs at grocery stores with a ca$h back cc and redeeming for cash.

Awesome for California. . .

1) Buy cards at grocery store for 10.00 on 5% rewards
2) Buy 1oz of bulk food for .01
3) get 9.99 in cash. 50 cents in reward?
4) Profit 49 cents?

I see some benefit, but I doubt it'll be worth the trouble.

I suppose the bigger danger would be...buy 1000 $10 gift cards with a 5% Cash Back CC. Redeem the 1000 cards for $10k cash, allowing you to pay off the CC. Pocket .05*10000 = $500....

I don't think it's worth the trouble either, but there's crazy people everywhere. One could come up with some regular routine and perfect it, like go to a mall with a SO or some friends, hit up a few stores to cash-in, then get "free" ice cream or movie tix, or just pocket it.

I didn't think the "crazy way" FAR laptops were worth the trouble, but look at 'em long threads.

idealguru -- I'm pretty sure cash value of gift card = redemption value.

Also this law only applies to retail gift cards, not Visa/MC/Am.Ex, coupons, or promotions/promotional GCs. Read the PDF, it's only two pages and high1ights changes to the existing law.

BTW, if not obvious, this also allows you to slowly pull cash out of a CC (and get paid instead of paying for it).

I don't see why it wouldn't apply to Amazon. They'll probably send a check. But it's a terrible way to cash out TY points since you'd have to do it $10 at a time, and I don't remember seeing $10 GCs at TY network. Even if they show up, they'll be like 2500 points.

If this were to be abused in any manner it seems to me the obvious answer is that stores just won't sell gift cards for less than $10.

Why don't you use the VISA/MC cards to buy store cards and then cash them out? If you have a large GC ask the store to split it up into smaller GCs. Most stores are willing to do this.

scripta said:I don't think it's worth the trouble either, but there's crazy people everywhere. One could come up with some regular routine and perfect it, like go to a mall with a SO or some friends, hit up a few stores to cash-in, then get "free" ice cream or movie tix, or just pocket it.

That's probably the best way to take small advantage of this. Find a store near somewhere you go already. Buy 50 or so gift cards online from the store. Then, exchange 5 or 10 at a time when you go near there.

Even then, is it really worth your time? If you do 10 at a time, if you bought them 5% CB, that means you're "earning" $5 to do that. If it takes you 15 minutes out of your way to do it, plus the time to order online, is your time worth that much (and also knowing you're being a scammer while doing this)?

walletfart said:...Even then, is it really worth your time? If you do 10 at a time, if you bought them 5% CB, that means you're "earning" $5 to do that. If it takes you 15 minutes out of your way to do it, plus the time to order online, is your time worth that much (and also knowing you're being a scammer while doing this)?Like I said, it's not worth the trouble for many, but $5 in 15 or even 30 minutes is better than minimum wage. My ante went up over the last few years with salary and AOR balances going up and free time going down. A few years ago I would have probably done it.

^^^ (h) For purposes of this section, “cash” includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscriber’s wireless telecommunications account is permissible.

I doubt they'll make you jump through hoops to get cash < $10. I guess we'll have to wait and see how this plays out.