Gift cards are popular and convenient gifts (to give and receive) for many occasions. But is it possible for gift cards to expire before they’re used?
The short answer is yes: Giftcards can expire. But federal laws help protect consumers by regulating whengift certificates and cards expire. The Credit Card AccountabilityResponsibility and Disclosure Act of 2009 (CARD Act) established fair andtransparent practices related to the issuance of credit, restricting whatcredit card companies can charge consumers. It also enacted regulations tolimit fees, expiration dates, and unexpected costs from gift cards. The ruleslimit dormancy, inactivity, and service fees on gift cards.
- Dormancy fees cannot be imposed unless the card has been unusedfor at least one year
- Only one dormancy fee can be charged each month after the firstyear
- The consumer must be given clear and prominent disclosures aboutfees
The CARD Act also states that giftcards cannot expire until five years after the date the card was purchased orthe date money was last loaded onto the card.
While the CARD Act set consumerprotections at the federal level regarding gift certificates and cards, it leftroom for regulation at the state level. Many states have their own gift cardlaws that can take precedence over federal gift card laws. Find out whetheryour state has passed any gift card laws by reviewing thechartlocated on theNational Conference of State Legislatures website.
Even though you’re now familiarwith the basic rules and regulations associated with gift card expiration, youmight still discover that a gift card you’ve given and/or received has expiredbecause it was misplaced or forgotten. As a precaution, try to use any giftcards that you receive as soon as possible. This will help ensure that theyretain their full value. Read the terms and conditions associated with yourgift cards to find out whether they have any fees, and when those fees might beapplied.
