In general, purchasers of prepaid data plans, including prepaid plans marketed as data-only plans provide their wireless (cell phone) number when purchasing the plans. Spengler Agans Bradley can advise your business to help ensure your startup doesnt become victim to the next $9.2 million class action suit. For postpaid accounts, check out T-Mobile eSIM. The CFPB updates this information periodically. The differences in outcomes turned on a minor difference in how the two merchants structured their class passes. You can also buy a $10/5GB mobile hotspot as an add-on. Additionally, you should charge your customer local charges at the rate listed for the city of Sacramento (if any). queensland figure skating. 3. NOTICE: We attempt to make our Legal Guides accurate as of the date of publication, but they are only guidelines and not definitive statements of the law. The invoice, receipt, or other similar document must show the amount of the prepaid smartphone (cell phone), the amount of the 911 surcharge ($0.30), the amount of the 988 surcharge ($0.08), the amount of local charges ($2.00), and the amount of sales tax ($9.00) at the time of the retail sale of prepaid MTS. Ever wonder why credit cards expire? This sale is subject to the 911 and 988 surcharges since your records (that is., the customer's billing address) show that customer is located in California. As with sales and use tax, the local charge rate varies depending on the location of the sale and in some instances local charges will not apply (for example, sellers with de minimis sales of prepaid MTS of less than $15,000 during the previous calendar year are not required to collect local charges). To determine local charges properly for your online sales, you should charge the rate in effect based on the above known California location or address of your customer in the order listed. Order reward cards On Demand and in bulk for your business. By comparison, CorePower Yoga sold prepaid yoga classes in packs of five, ten, and 20 that expired within six months. Best Prepaid Phone Plans for Seniors. You sell a prepaid wireless refill card online that is loaded with 400 prepaid wireless minutes to your customer who downloads it directly to his cell phone. If you want to change state in Restaurant Gift Certificate with no confusion, DocHub is a perfect instrument for this kind of tasks. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Need to know more? Does an unredeemed gift certificate escheat to the state? Most retail stores allow you to return things you buy within a reasonable time for a full refund, credit, or an exchange. . The provider might charge you a fee for this. The gift certificate law is California Civil Code Sections 1749.45-1749.6. Ask the seller about its policies on returning merchandise. In general, there are three circumstances under which a retail sale of prepaid MTS occurs in California and is subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). Q.2. The United States, its unincorporated agencies and instrumentalities, or any state of the United States; Any incorporated agency or instrumentality of the United States wholly owned by either the United States, or a corporation wholly owned by the United States; The American Red Cross, its chapters and branches; Banks, including national banking associations, located within the limits of California; Enrolled Indians who are service users subscribing for service from within the limits of an Indian reservation; Federal credit unions organized in accordance with the provisions of the Federal Credit Union Act; Insurance companies, including title insurance companies, that pay the California gross premium insurance tax. Note: Unless there is a separately stated charge for the SIM card, sales tax generally does not apply to the prepaid SIM card sold with minutes or airtime since the SIM card (tangible personal property) is typically considered incidental to the sale of the minutes or airtime. Definition of 'gift . Because you know your customer's address, you should determine if the 911 surcharge, 988 surcharge, and local charges apply based on the address, not on your customer's mobile number. Where can I get a copy of the gift certificate law? The monthly nature of the membership naturally expires before 5 years). Ingresa. Live Chat support is not available for Prepaid Services. Although your customer intends to use the SIM card and minutes outside of the U.S., the 911 surcharge, 988 surcharge, and local charges (if applicable) apply because the sale was made at your California store. Postal money orders are an exception they never expire and never lose . If you purchased prepaid MTS and overpaid the 911 surcharge, 988 surcharge, and/or local charges, you may file a claim for refund. Public File for KMAX-TV / Good Day Sacramento. Responding to consumer claims for refunds. Funds on the cards don't expire, though. Prepaid Funeral Plan Costs & Expenses. The amount of prepaid wireless minutes/airtime is a minimal amount, that is, $5 or less, or 10 minutes or less, or. For prepaid cards Federally regulated financial institutions can't set an expiry date on funds loaded onto prepaid cards they issue. 5. You sell SIM cards that are loaded with prepaid wireless minutes for international use. The cell phone and 10 minutes of prepaid airtime are sold for a single price of $59.99, and the customer is required to purchase the minutes with the cell phone as part of a package deal (bundled transaction). Moreover, they would have no effect if a seller of a card usable with unaffiliated, multiple sellers successfully take the position that these prohibitions do not apply to the card because it does not contain an expiration date, and therefore is exempt from the definition of gift certificate under section 1749.45(a). The CARD Act sets new laws on things like credit cards, but also gift certificates. If the service supplier has already paid the 911 and 988 surcharge to the state, you may file a Claim For Refund or Credit with CDTFA. A. Expiration dates, service fees and dormancy fees are prohibited by law for single-store cards, with limited exceptions. Prepared by: John C. Lamb, Senior Staff Counsel, Legal Services Unit, January 2004; Revised by Norine Marks, Senior Staff Counsel, July 2008; revised by Claire Yazigi, Staff Counsel, December 2010. Spengler Agans Bradley offers a flat-rate legal checkup for startups and business needing a broad, overall legal review of their business and business practices. So don't assume a store will allow you to return an item if you change your mind. Senior operations manager Paul Benvenuti says they have "extended the expiration date on dozens of VIP passesThe last thing we want is for someone to purchase a pass and not be able to use all the visits.". A customer who lives in San Francisco purchases prepaid wireless airtime from you at your store location in San Jose. Browse phones now! For example, on money orders more than a year old, WesternUnion charges a $2-per-month service fee for each month after the first 12 up to a maximum of $144. If you cancel a monthly subscription, it immediately moves to the Disabled stage on the date you cancel it. It's also perfect for people of all ages. Your customer pays with her PayPal account. No. This law, however, has a number of exceptions that allow expiration dates or service fees, which include: Cards issued by a bank or other financial institution that can be used at multiple locations, provided that the issuer discloses any expiration date and fees associated with the card. However the California law does not apply to multiple retailer gift cards such as mall gift cards or bank gift cards including Visa and MasterCard gift cards. Are a "gift certificate" and a "gift card" the same thing? In general, you should charge and collect local charges for the city and/or county where your business is located. You sell prepaid wireless airtime for $50. The gift certificate law requires the issuer of a gift certificate or gift card to honor it, but also limits that obligation to either redeeming the certificate or card in cash or replacing it with a new one. Shannon says she was able to use her VIP card after it expired. The cash equivalent value of the class passes was clearly displayed when purchased by the consumerthat is, if a customer purchased a series certificate that can be used to purchase classes valued at $30, the series certificate was displayed as SOUL30., The federal guidance accompanying the CARD Act provides two helpful illustrations. Mall/multiple-store gift cards: California law allows merchants to impose service fees and expiration dates for cards that can be used at multiple, unaffiliated businesses. Gift certificates and gift cards are covered by statutes setting these basic rules:2, FREQUENTLY ASKED QUESTIONS ABOUT GIFT CERTIFICATES AND GIFT CARDS, Q.1. For the same reasons asserted in the Legislative Counsel opinion referenced in endnote 16, in our opinion, whether the value of the gift certificate is redeemed in cash or by check would be dependant upon the policy of the seller. Yes, it is perfectly legal. Compare two recent cases of fitness companies who sold class packs to customers and faced lawsuits over alleged violations of the CARD Act: SoulCycle, a nationwide operation of indoor spin cycling studios, and CorePower Yoga, a yoga studio chain. SoulCycle classes differed in prices depending on the geographic market. Prepaid services remain with the service address originally purchased for & are NOT transferable to another service address during the same season in which they were purchased. California Department of Tax and Fee Administration. Some restrictions apply. If your prepaid card expires while you still have money on it, you may be able to request a replacement card to access the funds. An issuer may accept funds toward the purchase of a gift certificate from one or more contributors as a gift for another person (the "recipient"), and may require a date by which the recipient must redeem the funds. Each access line for each month or partial month for which a service user subscribes with a service supplier. If you are planning to travel abroad soon or stay in touch with loved ones who live abroad, there are plenty of great international service options with AT&T PREPAID. 911 Surcharge, 988 Surcharge, and Local Charge Rates, Electronic Funds Transfer (EFT) - Frequently Asked Questions (FAQ's), Filing Claims for Refund - Special Taxes and Fees, Local Prepaid Mobile Telephony Services Collection Act (42100-42111), subdivision (e) of Revenue and Taxation code (RTC) section 42020, Pay-As-You-Go cell phone with minutes/airtime, Prepaid telephone calling cards vs. prepaid wireless calling cards, SIM cards sold with prepaid wireless airtime/minutes, Prepaid products and services sold for use outside of California, Kiosks selling prepaid top-up airtime/minutes, Consumers that want to file a claim for refund for local charges, Telecommunication Service Suppliers (Service Suppliers), Medical alert devices and inmate call systems, Multiple Service Suppliers Furnishing Services Using the Same Access Line, Local Prepaid Mobile Telephony Services Collection Act Law, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2023, New 988 Surcharge and Rates for the 911 and 988 Surcharges Effective January 1, 2023, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2022, Emergency Telephone Users (911) Surcharge 2022 Rate and Mandatory Online Filing for Service Suppliers, Collection of Local Charges Extended through December 31, 2025, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2020 through December 31, 2020, Collection of 911 Surcharge Required by Sellers Beginning January 1, 2020; Collection of Local Charges by Sellers Extended through December 31, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2021 through December 31, 2021, The Emergency Telephone Users Surcharge Return Will Move to Our New Online Services System Effective November 9, 2020, Important Notice Regarding Your Emergency Telephone Users Surcharge Return, Changes to the Emergency Telephone Users (911) Surcharge Effective January 1, 2020, Information for Local Jurisdictions and Districts, Total due on sale (Price of Phone + Airtime + 911 Surcharge + 988 Surcharge + Local Charges + Sales Tax), Prepaid phone (see computation below for amount of sales tax included), 1000 minutes of airtime (911 Surcharge and local charges included), Local charges included in selling price (see computation below), Total due on sale* (price of phone + price of airtime), Total due on sale (single price of phone and airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), Prepaid phone + 10 minutes of airtime (or $5 in airtime), Total due on sale (price of phone + airtime + sales tax), Prepaid smartphone and 60 minutes of airtime, Total due on sale (prepaid smartphone and 60 minutes of airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), SIM card + one month unlimited talk & text, Total due on sale (SIM card + one month unlimited talk & text + 911 Surcharge + 988 Surcharge + local charges), Selling price of prepaid wireless airtime card. We have compiled a list of helpful resources for service suppliers. Below is a more detailed breakdown of the average cost of prepaid funerals depending on how you want to be remembered: can prepaid services expire in california. April 22, 2015 / 6:41 PM The app can only activate a T-Mobile prepaid line. We do not endorse the third-party or guarantee the accuracy of this third-party information. Firstly, there are some federal laws which apply across the board. No cash or ATM access. Shannon bought what is called a Joey's VIP Play Pass which allowed ten visits for $60. Prepaid wireless refill or top-off cards. Enjoy the freedom of a no-contract, prepaid cell phone from one of many top brands that is conveniently paid for as you go. Federal banking regulators recently have ordered that national banks provide better disclosure of these fees, including placing expiration dates on the front of cards; disclosing any monthly maintenance or inactivity fees; and providing a phone number or website for detailed information. NATOMAS(CBS13) Most Gift cards can't expire in California. In the case of a gift card, ask the seller if the recipient can add value or "reload" the card. What makes everything a lot more complicated is the fact that depending on the state you're in, laws regulating gift cards can change quite a bit. The sales price used to compute the local charges (if applicable) depends on whether the price of the prepaid wireless minutes can be identified from your books and records or if the amount of prepaid wireless minutes sold is minimal. Gift card funds must be good for at least five years under federal law, and some states laws give you more time. The fee can vary. In the new on demand economy, subscription-based revenue models, or subscription plans, have grown in popularity. However, the holder of the certificate or card may have a claim against the bankruptcy estate. 2 lines $80 3 lines $120 $90 4 lines $160 $100 5 lines Best Plan: Unlimited . Businesses also are increasingly offering their customers the option to buy packagesfor instance, a pack of 5 classes at your local gym. Only available for Apple iPhone XS or newer running iOS 12.1.1 or later. Further, you should charge your customer any applicable local charges at the rate listed for the City of Sacramento. Q.8. 112 Code of Federal Regulations, Section 205.20. Since you know your customer's address, you should use her address to determine if the 911 surcharge, 988 surcharge, and local charges apply. 23California Civil Code Section 1749.5(f). A Local Charge Agreement for state collection and administration of local charges, A Certification of ordinance that applies to local charges, A Resolution to authorize representative(s) for the local jurisdiction. 11California Civil Code Section 1749.5(d). . Airtime minutes will be deducted plus the cost of the International call. Get the best pay as you go phone plan or prepaid phone plans with the latest phones. The number of access lines subject to the 911 and 988 surcharges in a PBX phone system shall not exceed the total number of concurrent outbound calls that can be placed to the 911 emergency communications system or 988 suicide and crisis lifeline at the same time. Be aware of the retailer's financial status. In California, for example, it's against the law for store gift certificates and gift cards to have an expiration date or dormancy fees (except under certain circumstances), and if the balance on the card is less than $10, you can redeem it for cash. To register online for a prepaid MTS account, visit our Taxpayer Online Services Portal. 17California Civil Code Section 1749.5(e). No, unless: Expiration of the underlying funds (as opposed to the expiration of the card itself) is the later of (1) 5 years after the certificate was initially issued or the date on which funds were last loaded to a store gift card or general use prepaid card or (2) the expiration date for the . As with food gift cards, however, the expiration date must be printed on the front of the card in 10-point type. Passports. Just like 7-Eleven SpeakOut's plan, this is a great option for an emergency phone or to keep in contact with a child or elderly parents. Click here to buy cards for your business. However, this general rule is subject to the following exceptions: Q.3. They have relatively high priority among unsecured creditors in a Chapter 7 case, and may receive some percentage of the certificate's or card's value, but only if the bankruptcy estate has enough assets to pay claims. The price of the cell phone component of the bundled charge is disclosed and provided to the prepaid MTS consumer on a receipt, invoice, or other written documentation. Most of those locations can also take your passport photo. For which no charges are billed by a service supplier to a service user. A Private Branch Exchange (PBX) phone system is commonly used in many business environments where multiple access lines are needed. "These play passes may not fall under the gift card law," because Barlow says these VIP cards don't' come with a cash value, like gift cards do. We brought the issue to consumer attorney Ian Barlow. . 25California Civil Code Section 1749.6(b) (Statutes 2002, chapter 997 (AB 2473)). 3California Civil Code Section 1749.5(a). Buyers should beware when purchasing "unaffiliated, multiple seller" cards that not all questions about the terms of these cards have been answered and ask carefully about their terms before purchase. The following table explains what you can expect when a paid Microsoft . Account Sign InIniciar sesin. However, prepaid telephone calling cards that allow the purchaser to use minutes from either a landline or a cell phone by calling an 800 number, or by PIN-less calling are not subject to the 911 surcharge and 988 surcharge of local charges. 4California Civil Code Section 1749.5(b). . The Civil Code also is available on the Internet at http://leginfo.legislature.ca.gov/ under the "California Law" button. The Act requires that any prepaid goods or services with a value of over $50 must have a written contract. There are multiple ways you can check your balance conveniently 24/7 for free, including through push notification, text, or email: Online: visit EIPCard.com and access your account information (account registration required); By Phone: call 1-800-240-8100 (TTY: 1.800.241.9100) and use the automated voice response system (Stats. Therefore, because your customer provided a mobile phone number that is associated with a California location, the online sale is subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). 16California Civil Code Section 1749.5(a)(2). 12While the term "capital letters" is found in the statute, we deduce that this requirement would not apply if the expiration date listed consists of only numbers. 3. First, not covered by the law were gift cards that could be redeemed for a specific good or service, or experience, such as a spa treatment, hotel stay, or airline flight. By comparison, the law does cover gift certificates that can be applied toward the purchase of a specific good or service, such as a certificate or card redeemable for a spa treatment up to $50.. Because you do not know your customer's address, you must rely on her mobile phone number to determine if the 911 surcharge, 988 surcharge, and local charges apply. For an overview and comparison of federal and California gift card law, please see Tables A and B, attached. All our prepaid data plans include 5G Nationwide/4G LTE. Subscribe to our newsletter for special discounts. Mint Mobile - Best Prepaid Unlimited Plans. Int'l. services extra. This exception was modified effective January 1, 2005, to clarify that a redemption date was not another name for an expiration date. 22California Civil Code section 1749.5(b). Ask about the seller's redemption policy. You will need to be reissued a card after it expires. "What the consumer is buying is the play pass itself," he said. Any dormancy fees must be printed on the gift card. It is not legal advice or regulatory guidance. In the period leading to the rules, regulators fretted that. Expiration dates may apply for gift cards distributed free as part of a premium or promotion or sold at below face value through a volume discount to employers, non-profits or charitable organizations using them for fundraising purposes. 1488 (February 11, 1997) Gift Certificates; see also California Civil Code Section 1749.5(b)(1), regarding gift certificates sold after January 1, 1997. This may include changing an address, opening or closing a business location, or obtaining a copy of their seller's permit or license. Access lines for which no charges are billed by a service supplier to a service user. To contact us, or to sign up for our newsletter, please visit our Contact page or reach out to the relevant attorney directly through their bio page. Benefits of a prepaid cell phone. The sales are made at your California store. Lively - Best Prepaid Plans With Medical Alert Features. 8California Civil Code Section 1749.45(b). Bank gift cards: Because bank gift cards can be used at multiple, unaffiliated businesses, California law regarding expiration dates and service fees doesn't apply. The invoice, receipt, or other similar document must show the amount of the 911 surcharge ($0.30), the amount of the 988 surcharge ($0.08), and the amount of local charges ($6.88) at the time of the retail sale of prepaid MTS. The same customer in Example 1 who lives in San Francisco, purchases a prepaid wireless e-card from your website and downloads the minutes to their phone. If a customer purchased a series certificate that can be used to purchase classes value at $30, the series certificate issued by SoulCycle displayed as SOUL30. (For a $34 pass, the series certificate was SOUL34.) For this Internet sale, you should charge and collect the 911 surcharge, the 988 surcharge, and the local charges at the rate in effect for the City and County of San Francisco, indicated on the billing address provided by your customer. But not all subscription plans are created equally under the law. Since California's Legislative Counsel has concluded that the issuer (not the holder) may choose between these two methods,24 the likely answer is that the issuer may set its own policy. It requires a seller in bankruptcy to honor gift certificates issued before the date of the bankruptcy filing.25 No court has ruled on the effectiveness of this law. Click here if you have questions about your card. The escheat laws do not apply to gift certificates subject to the rules discussed above. It is the opinion of this office that, where the laws are inconsistent, the law that is most protective of consumers should be followed. Get Milestone Servicing. The judge in the CorePower Yoga case, in rejecting plaintiffs claims, noted the absurd result that would follow from plaintiffs proposed interpretation of the law, as a violation of the CARD Act could result from any time limits on admission passes, codes, vouches, or tickets, including time restrictions on monthly passes to a parking garage, admission passes to theme parks, physical training packages, music lessons, and bus passes good for a certain number of rides. The court found, It would be absurd to determine that these prepaid, time-limited goods and services are unlawful because they contain expiration dates or temporal restrictions.. However, cards with a balance of less than $10 may be redeemed for the remaining value if the consumer asks. The rash of bankruptcies and other difficulties facing the state have led to changes and reinforcements of laws applying to gift cards in California. You can top up your account at any time online or at any of Petro-Canada's 1,800+ stations found across the country. In addition, ask about the locations where the unspent portion of the value can be redeemed, and the manner in which that amount can be redeemed. The 911 and 988 surcharges still apply still applies to the transaction and sales tax applies to the entire charge. State of emergencies declared in California for the past three years. Check the store's . What Does the Expiration Date Mean on a Credit Card? These include access lines to: (See Revenue and Taxation Code (RTC) section. Specified tangible and intangible personal property that is held or owing in the ordinary course of business and remains unclaimed by the owner for more than three years escheats (reverts) to the state. . 28California Civil Code Section 1749.45(a). This argument has not been tested to our knowledge. Petro-Canada Mobile | Top-up plan | $25/120 daysBest prepaid plan for bonus perks. Call us today to get started 866.829.0707. No international roaming allowed. A. 26California Code of Civil Procedure Sections 1520-1520.5. A gift certificate or gift card without an expiration date is valid until it is redeemed or replaced.20, Notwithstanding any policy of the seller, effective January 1, 2008, a gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash (not a new certificate or merchandise) for its cash value.21 Cash for purposes of this section includes currency or check.22 Where a seller accepts funds toward a gift certificate from one or more contributors as a gift for another person (the "recipient"), the seller must give each contributor a full refund of the amount paid toward the certificate if the time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to contributors and recipient and the recipient does not redeem the funds by the time disclosed.23. The 911 and 988 surcharges apply to partial month billings in the full amount. A. Sellers that file "Chapter 11" (reorganization) bankruptcy intend to stay in business, so they typically will ask the bankruptcy court for permission to honor gift certificates in an effort to maintain good customer relations. Here's the rub: SoulCycle made a $9.2 million mistake. 2004 ch 319 (AB656) [Assembly Floor analysis August 11, 2004].) The invoice, receipt, or other similar document must show the amount of the 911 Surcharge ($0.30), the amount of the 988 surcharge ($0.08), and the amount of sales tax ($5.40) at the time of the retail sale of prepaid MTS. Consumer Cellular - Best Senior-Specific Prepaid Plans.
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