Gift card expiration laws set a federal floor: a gift card, gift certificate, or general-use prepaid card cannot expire sooner than five years from the date it was issued or last reloaded with funds. That rule comes from the Credit CARD Act of 2009, codified at 15 U.S.C. § 1693l–1.1Office of the Law Revision Counsel. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards Many states go further, and roughly a dozen ban expiration dates on gift cards entirely. So the short answer is that your balance is protected for years, and depending on where you live, it may never expire at all.
The Five-Year Federal Minimum
Federal law makes it illegal to sell or issue a gift certificate, store gift card, or general-use prepaid card with an expiration date earlier than five years from the date of issuance or the most recent date funds were loaded.1Office of the Law Revision Counsel. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards If the card carries an expiration date at all, the terms must be stated clearly and conspicuously on the card itself.
The rule covers almost anything a consumer would recognize as a gift card: single-store cards, cards good at a group of affiliated retailers, and Visa- or Mastercard-branded prepaid cards usable anywhere the network is accepted. Electronic and emailed codes are covered too. The statute’s definitions of “gift certificate” and “store gift card” include an “electronic promise,” so a digital code carries the same protections as a plastic card.2Office of the Law Revision Counsel. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards
The Card Can Expire Before the Money Does
This is where a lot of people give up on a card they still have every right to spend. The plastic itself can carry a printed expiration date, similar to a debit card, but the funds on it may last longer. Federal regulations treat the two as separate. If the physical card expires while the underlying funds are still good, the issuer must tell you the money is still available and give you a toll-free number or website to request a replacement.3eCFR. 12 CFR 1005.20 – Requirements for Gift Cards and Gift Certificates
The replacement has to be free. The issuer cannot charge you a fee for a new card unless the original was lost or stolen.4eCFR. 12 CFR 1005.20 – Requirements for Gift Cards and Gift Certificates If you pull an old card out of a drawer and the printed date has passed, call the number on the back before you throw it away. The balance is probably still there.
Fees That Can Shrink Your Balance
A card that technically doesn’t expire can still lose value through fees, and the most common one is a dormancy or inactivity charge. Federal law puts three limits on those fees.
The issuer cannot charge a dormancy, inactivity, or service fee unless the card has gone unused for at least 12 months. After that 12-month window, only one such fee can be assessed in any given month.1Office of the Law Revision Counsel. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards And the card itself must state on its face that a fee may be charged, how much, how often, and that it applies for inactivity. The issuer also has to inform the buyer about the fee before the sale, whether the purchase happens in person, online, or over the phone.5GovInfo. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards
Other fees, like purchase or activation fees, are not banned outright, but they must also be disclosed on or with the card, including the amount or how it is calculated and the conditions that trigger it. A toll-free number and website for fee information have to appear on the card too.3eCFR. 12 CFR 1005.20 – Requirements for Gift Cards and Gift Certificates If you were never told about a fee before you bought the card, the issuer likely broke the law.
Promotional and Reward Cards Are Different
One boundary worth knowing. If a card was handed to you as a rebate, promotion, or loyalty reward with no money changing hands, it is not covered by the five-year rule. The statute specifically excludes cards distributed through award or promotional programs.1Office of the Law Revision Counsel. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards Those cards can expire on a shorter timeline. They still carry disclosure obligations, though: the front of a promotional card must say it was issued for promotional purposes and must display the expiration date for the funds and any fees.3eCFR. 12 CFR 1005.20 – Requirements for Gift Cards and Gift Certificates
States That Go Further Than Federal Law
The federal five-year rule is a floor. States can offer stronger protection, and where they do, state law controls. Roughly a dozen states, including California, Connecticut, Illinois, Maine, Minnesota, Montana, and Rhode Island, ban gift card expiration dates outright. In those states, the balance simply doesn’t expire, no matter how long the card sits unused. Several of the same states also ban dormancy and inactivity fees entirely.
Cash Back for Small Balances
About ten states require retailers to redeem small remaining balances for cash when a customer asks. Thresholds vary, generally somewhere between under a dollar and under ten dollars. California recently raised its threshold: effective April 1, 2026, retailers there must redeem any gift card with a remaining balance under fifteen dollars for cash.6LegiScan. Bill Text: CA SB22 2025-2026 Regular Session Chaptered Most states have no cash-back requirement at all, so whether you can walk out with the leftover $2.37 depends entirely on where you live. Cashiers rarely volunteer the information, so ask.
When the Retailer Goes Out of Business
Gift card protections don’t do much when the issuer collapses. If a retailer files for Chapter 11 bankruptcy, it has to ask the bankruptcy court for permission to keep honoring gift cards. Some do, to keep foot traffic during reorganization. Others don’t, and the cards become effectively worthless unless the holder files a formal claim against the bankruptcy estate.7Federal Reserve Bank of Boston. Gift Card Value When Issuers Go Bankrupt
Even then, gift card holders sit at the back of the line. They are unsecured creditors, behind banks and other lenders holding secured claims, and unsecured creditors in retail bankruptcies typically receive partial payment or nothing at all.7Federal Reserve Bank of Boston. Gift Card Value When Issuers Go Bankrupt State consumer laws don’t override federal bankruptcy law. If you hear a retailer is in trouble, use the card.
What to Do If a Card Is Dishonored or You’re Charged an Illegal Fee
Start with the issuer. Call customer service, cite the five-year federal rule, and be specific about what happened. A lot of violations come from employees who don’t know the law, not company policy, and a phone call often clears things up.
If that fails, file a complaint with the Consumer Financial Protection Bureau. Gift cards fall under the CFPB’s “prepaid cards” category. You can submit online or by calling 855-411-2372; the bureau forwards the complaint to the company and requires a response.8Consumer Financial Protection Bureau. Submit a Complaint Your state attorney general’s consumer protection division enforces state-level gift card laws and is the right place to go for issues like a missing cash-back refund. If the problem is a scam rather than an issuer’s policy, the Federal Trade Commission takes reports as well.