Three major players in the prepaid and gift card space are no longer doing business in New Jersey, following dramatic changes to the rules of the stored value game in the Garden State.
The point of contention: a change to state law that gives New Jersey the right to claim unused funds on gift cards after two years of card inactivity. The new law was actually passed in 2010, but an injunction had prevented the change from taking effect until recently.
As a result, American Express, InComm and Blackhawk Network have each announced that they would no longer be selling gift cards in the state.
Roughly $70 million is likely to be at stake, estimates Creditcards.com. Across the industry, about six percent of gift card funds are never spent by the consumer, the report says.
Last week, Gov. Chris Christie responded to companies leaving his state with indifference. “If they want to move out, move out,” he said, in a video press conference recorded by the New Jersey Star-Ledger.
The story even made it on to the radio — NPR dedicated a three-and-a-half minute segment to the controversy.
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