Do Gift Cards Expire? Here's What the Law Says
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Perhaps you've recently done a little spring cleaning or home organization and have unearthed an old gift card that's been forgotten for who-knows how long. Your first thought might be, "Do gift cards expire?" In short, yes, a gift card can expire, but this is a somewhat unlikely occurrence now. Even if it's for a store that has gone out of business, you may have some recourse.
Because of federal and statewide legislation that protects consumers, it's possible that the card balance has remained completely unaffected by the passage of time, allowing you to use it as if it were given to you yesterday. A few determining factors include when the gift card was bought and the retailer you purchased it from. The date of purchase may determine whether you can still use it or not, and the retailer might have a no-expiration or dormancy-fees policy.
Our advice? Before you do anything else, flip your gift card over and read the fine print on the back. If you see the words "no expiration date or fees," you're in the clear. For a used gift card with an unknown balance, there should also be a phone number or website on the back that'll also give you this information.
If, however, you see that your gift card does have an expiration date or any stipulations regarding inactivity fees, you'll want to check what's possible concerning the current federal or state laws. Here's what you need to know if you find yourself asking the question, "Do gift cards expire?"
When do gift cards expire?
In 2009, The Credit Card Accountability Responsibility and Disclosure Act (also known as the CARD Act) was passed, and it states the following: "A gift certificate, store gift card, or general-use prepaid card may contain an expiration date if... the expiration date is not earlier than 5 years after the date on which the gift certificate was issued, or the date on which card funds were last loaded to a store gift card or general-use prepaid card." It also states that this expiration must be "clearly and conspicuously stated."
While it is up to the retailer's discretion to issue an expiration date on their gift cards, since this Act was passed, many major retailers now opt out of doing this — perhaps to avoid potential complications with their consumers.
What about gift card inactivity fees?
It is possible for a gift card to incur monthly inactivity fees (also called "dormancy fees" or "service fees") after 1 year without use.
However, the Act states that the responsibility is on the vendor to inform "the purchaser of such charge or fee before such certificate or card is purchased, regardless of whether the certificate or card is purchased in person, over the Internet, or by telephone."
Do the limitations differ by state?
Yes, gift card limitations differ by state. Some states are consistent with federal regulations as outlined in the CARD Act, while others have instated more generous limitations on gift card inactivity fees to better protect consumers.
For example, in December 2022, New York State extended the gift card expiration limit to 9 years after purchase and now also prohibits gift card fees altogether.
Again, if your retailer gift card states, "no expiration date or inactivity fees," you don't have to worry about a defunct card or your gift balance running out.
Can you turn in a gift card for cash?
While you may not be able to return a gift card to the store (especially if it's an old card or one without a receipt), you might be able to turn it into cash. Depending on the state you live in, the gift card's retailer may allow you to exchange a gift card with a very low balance (at most $10 or less) for its cash value.
If the gift card has a higher balance (and no expiration date), you could opt to sell it. There are websites, like Raise or CardCash, that let you trade in unwanted gift cards for cash or exchange them for a different retailer. Just keep in mind that both of these sites take a portion of your unwanted gift card amount in exchange for this service.
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