Leawood, Kan. – February 13, 2026:
As you may recall, effective April 1, 2026, California law will require cash redemption when the remaining balance on a qualifying gift certificate or gift card is less than $15. See, West’s Ann. Cal. Civ. Code §1749.5(b)(2) & (j). Last year the California Legislature enacted SB 22 that amended the California Consumer Protection statute with respect to gift certificates. See, Update: California Governor Considers Bill to Increase the Mandatory Cash Redemption Amount, October 3, 2025.
The definition of ”gift certificate” includes “gift cards and electronic gift cards but does not include any gift card usable with multiple sellers of goods or services, provided the expiration date, if any, is printed on the card. This exemption does not apply to a gift card usable only with affiliated sellers of goods or services.” Id. at §1749.45(a). Thus, the mandatory cash redemption requirement is considered to apply to closed loop gift card programs where the card is redeemable at a single brand or affiliated brands. Further, it likely does not apply to cards that are redeemable at multiple unaffiliated merchants, for example, mall or shopping center gift card programs or open loop gift card programs.
The $15 mandatory cash back redemption also does not apply to gift certificates and gift cards that are “donated to a nonprofit or a charitable organization without any money or other thing of value being given in exchange if the gift certificate has a disclaimer in at least 10-point font that the card is not redeemable for cash under California state law.” Id. at §1749.5(b)(2).
The statutory definition of “cash” does not change. “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.” West’s Ann. Cal. Civ. Code §1749.5(i).
The statute can be found here: Title 1.4A. Gift Certificates [1749.45-1749.6]
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