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Old Nov 23, 2006, 5:08 am
  #14  
Darren64
 
Join Date: Mar 2005
Location: Washington DC
Programs: US1, AA Gold, Marriott Silver
Posts: 132
Originally Posted by FCYTravis
Not true everywhere. California state law prohibits sellers from attaching expiration dates to gift cards or certificates issued in the state.

Someone gave the company money, essentially to hold in trust for someone else to spend through the gift card. Money doesn't expire - thus, neither should gift cards or certificates.

Frequent flyer miles, though, are not cash and are offered as premiums - so companies are free to set their expiration terms.
I did not realize that the law ws state by state, I always thouhgt it was determined by the merchant. Good to know.

As for the miles, while not cash, they do have a value attached to them by virtue of how they are spent. I believe that in accounting terms they would be counted as a debit when people cash them in, particularly if you are using the miles for a non US *A carrier. Althought I could be wrong.
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