Got a gift card sitting in your wallet from like three birthdays ago? Yeah we’ve all been there. You find it buried under receipts and suddenly panic wondering if this thing even works anymore. The anxiety is real honestly.
Here’s the good news though. Federal law says gift cards can’t expire for at least five years from the date you got them. The CARD Act of 2009 made this a thing after companies were basically draining people’s balances with ridiculous fees and short expiration windows. Pretty messed up before that law passed.
Back in the day businesses could set whatever expiration they wanted. Some cards expired in six months. Others charged monthly fees that ate your balance before you even used it. Congress stepped in and now there’s actual protection. Knowing these rules helps whether you’re using gift cards or thinking about selling plastic gift cards for your own business.
The Federal Five Year Rule
Let’s break down what the law actually says cuz it’s pretty straightforward. Any gift card sold in the US has to be valid for minimum five years. That’s from the purchase date or the last time money got loaded onto it. Whichever happened more recently.
This applies to store gift cards and those general use prepaid cards you see at checkout. Doesn’t matter if it’s from a big retailer or a small local shop. Five years is the floor. Non negotiable.
The physical card itself might have an expiration printed on it. But here’s the twist. Even if the card expires the money on it usually doesn’t. You can request a replacement card with your remaining balance. No fee allowed for that either which is clutch.
State Laws That Go Even Further
Some states said five years isn’t enough and went harder on protections. California is the big one. Gift cards literally cannot expire there. Ever. Your card from 2015 technically still works if the business exists.
Massachusetts requires seven years minimum. Other states like Colorado and Minnesota prohibit most fees entirely. If you live in or buy cards in these states you get extra protection automatically.
National brands usually follow the strictest state rules everywhere. It’s easier for Target or Starbucks to have one policy than manage fifty different ones. So even if your state allows expiration most big companies just skip it altogether. Works in your favor.
What About Those Sneaky Fees
Fees are where things get annoying. Federal law does allow inactivity fees but with major restrictions. They can’t charge anything until you’ve gone twelve full months without using the card. One whole year of nothing.
After that twelve months they can only hit you with one fee per month. And get this. The fee terms have to be clearly printed on the card or packaging before you buy it. No surprises allowed. If you didn’t see the fee disclosure they technically shouldn’t be charging it.
Dormancy fees and service fees fall under the same rules. Read the fine print on the back of any card before purchasing. If the disclosure isn’t there that’s a red flag. Legitimate cards spell everything out upfront.
For Businesses Issuing Gift Cards
If you’re on the selling side this stuff matters for compliance. Your plastic gift cards need to follow federal minimums at bare minimum. Stricter state laws apply if you’re doing business there. Getting it wrong can mean fines between $500 and $5000 per violation.
PrintRobot produces plastic gift cards from their Florida facility with all the standard features businesses need. Magnetic stripes and barcodes integrate with most POS systems. Credit card thickness PVC lasts years without cracking or fading.
Free design services on orders over $250 means you’re not figuring out artwork yourself. They handle the technical stuff like mag stripe encoding settings. Cards ship in 10 to 15 business days which is solid turnaround for custom work.
Setting proper expiration dates and fee disclosures on your cards isn’t optional. Work with your printer and POS provider to make sure everything stays legal. Better to get it right upfront than deal with compliance headaches later.
FAQs About Gift Card Expiration
Do all gift cards expire after five years?
Federal law sets five years as the minimum. Some states like California prohibit expiration entirely. National brands often just skip expiration dates to keep things simple.
Can they charge fees on my gift card?
Only after twelve months of inactivity. Maximum one fee per month after that. Fees must be disclosed on the card or packaging before purchase.
What if my card expired but I still have balance?
Request a replacement card. The funds usually stay valid even after the physical card expires. They can’t charge you for the replacement either.
Do these rules apply to promotional cards?
Sometimes not. Cards given free for promotions or loyalty rewards may have different rules. Purchased gift cards always get full protection.
