Do Gift Cards Expire? Federal and State Rules for 2026

Do gift cards expire? In the US, the money on most gift cards can’t expire for at least five years from the day the card was bought or last loaded. Some states go further. California, Florida, and Connecticut ban expiration dates on most cards, and New York gives cards bought since December 10, 2022 nine years.

That matters, because forgotten cards are everywhere. Bankrate’s 2024 gift card survey found that 43% of US adults hold at least one unused gift card, voucher, or store credit, worth $244 on average.

TL;DR

• Under federal law, gift card funds can’t expire within five years of purchase or the last time money was loaded
• Inactivity fees are only allowed after 12 months without use, and no more than once a month
• California, Florida, and Connecticut ban expiration on most gift cards, New York requires nine years, and Ohio requires at least two years
• Promotional, loyalty, and reward cards you get for free can expire sooner, as long as the card says so
• If your card shows an expired date but the funds are still valid, the issuer has to replace it for free unless it was lost or stolen
• For merchants, no expiration on paid gift cards is the simplest policy that complies everywhere, while promotional credit can carry a clear end date

How Long Do Gift Cards Last Under Federal Law?

The federal Credit CARD Act of 2009 set a floor for every state. Its gift card rules live in Regulation E, which the Consumer Financial Protection Bureau (CFPB) now enforces under 12 CFR 1005.20. They apply to gift cards sold on or after August 22, 2010.

Here’s what the rule says:

• The funds can’t expire earlier than five years after the card was issued or the date money was last loaded onto it
• Dormancy, inactivity, and service fees are only allowed if the card hasn’t been used in the past 12 months
• Issuers can charge no more than one of those fees in any calendar month, and the fees must be clearly disclosed
• The rule covers store gift cards and network-branded prepaid cards, such as Visa and Mastercard gift cards

One detail trips people up. The plastic card can carry an expiration date that comes before the funds expire. When that happens, the card must say so, and the issuer has to send you a replacement or pay out the balance at no cost. The only exception is a card that was lost or stolen.

So when do gift cards expire? Under federal law, never sooner than five years. And because reloading resets the clock, a card you top up regularly can stay valid much longer.

Which States Have Stricter Gift Card Expiration Laws?

Federal law is the minimum. If your state’s gift card expiration law gives you more time, or bans expiration entirely, the stricter rule applies.

These five states are the ones shoppers ask about most:

A few details are worth knowing:

• In New York, the date you bought the card matters. Cards bought between August 22, 2010 and December 9, 2022 follow the older five-year rule. Different fee rules also applied in that window, as the New York Department of State explains
• California raised its cash-back threshold from $10 to $15 on April 1, 2026
• In Connecticut, cards issued by federally chartered banks follow federal law instead of the state ban

For every other state, the National Conference of State Legislatures keeps a state-by-state list of gift card statutes.

Which Gift Cards Can Still Expire?

Not every card is covered by the five-year rule. Regulation E excludes several kinds of cards, and these can expire sooner:

• Loyalty, award, and promotional cards you get for free, such as a $10 bonus card with a $50 purchase. To be excluded, the front of the card has to say it’s promotional and show when the funds expire
• Reloadable cards that aren’t marketed or labeled as gift cards
• Cards that aren’t marketed to the general public, such as cards a company gives its employees
• Gift certificates issued only on paper
• Cards that can only be used for telephone services
• Cards that are only good for admission to a specific event or venue

Some of these cards are still covered by state law. California and Florida, for example, also protect paper gift certificates.

What about prepaid Visa and Mastercard gift cards? Yes, they’re covered by the five-year rule too. These network-branded cards are the ones most likely to carry a printed expiration date, though. They’re also where you’ll most often see inactivity fees after a year of no use. If the date on the card has passed, call the number on the back and ask for a free replacement.

What Can You Do With an Expired Gift Card?

Don’t throw it away yet. An expired card often still has money on it that you can recover. Here’s what to do, step by step:

1. Check when the card was bought or last loaded. If it was within the last five years, the funds are still valid under federal law
2. Check the balance on the issuer’s website, in the store, or by calling the number on the back
3. If only the plastic card has expired, ask the issuer for a free replacement or a payout of the remaining balance
4. Check your state’s rules. In California, Florida, and Connecticut, most cards can’t expire at all
5. If the store has closed or the issuer says the balance is gone, search your state’s unclaimed property records. MissingMoney.com is a free database managed by the National Association of Unclaimed Property Administrators
6. If an issuer won’t honor a valid card, file a complaint with your state attorney general or the CFPB

Store closures are the hardest case. The CFPB warns that if a retailer goes out of business, its gift cards may not be redeemable. If a store you have a card for is struggling, spend the balance sooner rather than later.

One more warning. Anyone who asks you to pay a fee or a debt with gift cards is almost certainly running a scam. It’s worth knowing the most common gift card scams before you buy or share a card.

What Happens to Gift Card Balances That Never Get Used?

Plenty of gift card money is never spent. In Bankrate’s 2024 survey, 20% of US adults said they’d let a gift card expire, 17% had lost one, and 12% had a store close before they could use it. In total, 34% of adults have lost money on a gift card. For the full picture, see our breakdown of how many gift cards go unused.

So where does that money end up? There are three possible outcomes:

• Liability: when a store sells a gift card, it owes the cardholder goods or services. That debt sits on the books as gift card liability until the card is redeemed
• Breakage: the portion a retailer expects never to be redeemed can be recognized as revenue over time under ASC 606. We explain how in our guide to gift card breakage
• Unclaimed property: in some states, a retailer has to report unspent balances that sit dormant long enough and send them to the state. The state then holds the money for the owner. Rules vary, and several states exempt gift cards

The unclaimed property system is bigger than most people think. State programs returned more than $4.2 billion to owners in fiscal year 2025, according to the National Association of Unclaimed Property Administrators. That figure covers all unclaimed property, not just gift cards.

How Should Merchants Set a Gift Card Expiration Policy?

Gift cards are a big business. The National Retail Federation expected holiday gift card spending to reach $29 billion in 2025, with 43% of shoppers planning to buy at least one. If you sell gift cards, your expiration policy affects both compliance and how much customers trust your cards.

Which state’s law applies to your gift cards?

If you sell online, you’re selling into every state, and gift card laws are written to protect the consumer. In practice, that means you should assume the strictest rule that applies to your buyers.

For unclaimed property, the US Supreme Court set the order of priority in Texas v. New Jersey (1965). The state of the owner’s last known address in your records has first claim. If you don’t have an address, your state of incorporation can claim the money. Rules differ by state and by card type, so check your obligations with an accountant or attorney who knows unclaimed property law.

Why is no expiration the safest policy for paid gift cards?

A gift card with no expiration date complies with the rules in every state we’ve covered. It also takes away the need for special disclosures on the card and avoids the bad experience of a customer finding out their card is dead.

It’s also why many platforms default to no expiration. If you set up gift cards on Shopify, for example, cards don’t expire unless you choose a date.

Where can an expiration date work?

Expiration dates do have a place: on promotional credit that customers didn’t pay for. A short window creates urgency and brings shoppers back faster. Think of holiday offers like “spend $50, get a $10 bonus card,” win-back credit, or loyalty rewards. Our guide to gift card promotions has more ideas.

To keep promotional credit compliant:

• Clearly label the card or email as promotional
• Show the expiration date on the front of the card or in the delivery email
• Keep promotional value separate from any money the customer paid
• Check state rules, because some states treat promotional cards differently

Quick reference: which cards can expire?

If you offer reloadable gift cards, remember that each reload restarts the five-year clock. And if you issue gift cards for refunds, handle that credit as carefully as a paid card, because it represents the customer’s own money.

How Does 99minds Help You Manage Gift Card Expiration?

Getting the policy right is half the job. The other half is running it day to day without mistakes. With a gift card platform like 99minds, you can:

• Set expiration rules when you create each card or campaign, so paid gift cards never expire while promotional cards carry a clear end date
• Issue promotional and refund value as separate store credit, so a promotion can end without touching money the customer paid
• Use automated workflows to remind customers about their balances
• Add cards to Apple and Google Wallet with digital wallet passes, so customers always see their balance
• Track issuance and redemption in one set of reports, which makes gift card accounting and liability tracking easier

Because 99minds syncs balances across your website, app, and retail stores in real time, a customer can spend a card wherever they shop. That’s one less reason for a card to sit forgotten in a drawer.

So, Do Gift Cards Expire, and Where Does 99minds Fit In?

Do gift cards expire? Not quickly. Federal law protects gift card funds for at least five years from purchase or the last load, and inactivity fees can’t start until a card has gone 12 months unused. California, Florida, and Connecticut ban expiration on most cards, New York gives nine years, and Ohio gives at least two.

The main exceptions are promotional, loyalty, and reward cards you didn’t pay for, which can expire if they say so clearly. If you find an old card, check the purchase date and your state’s rules before you write it off.

For merchants, the simplest policy is no expiration on paid gift cards and clear, short windows on promotional credit. If you’d like to see how 99minds handles expiration rules, store credit, and wallet passes in one place, book a demo with our team.

Frequently Asked Questions About Gift Card Expiration