Gift Card Expiration

Gift Card Expiration refers to a date or time limit after which a gift card can no longer be redeemed for purchases. Once a gift card expires, its remaining balance becomes inaccessible to the holder. Expiration policies vary widely by retailer, jurisdiction, and card type.

Legal landscape

Many jurisdictions have enacted consumer protection laws that limit or outright prohibit gift card expiration. In the United States, the federal CARD Act (2009) requires that gift card funds cannot expire for at least five years from the date of issuance or last reload. Many individual states impose even stricter rules—some prohibit expiration entirely. In the European Union, regulations vary by member state but generally favor consumer protection. Store owners must research the applicable laws in every jurisdiction where they sell gift cards.

Inactivity fees vs. expiration

Some issuers charge inactivity fees (also called dormancy or service fees) that gradually reduce the card balance if it isn’t used within a specified period. Under the CARD Act, inactivity fees in the US cannot be charged until at least 12 months of inactivity, and the card must have been disclosed clearly at the time of purchase. Many states prohibit these fees altogether.

Implementation considerations

• Default to no expiration unless you have a specific business reason and legal clearance.
• If expiration is used, clearly display the expiration date at the point of sale, in the delivery email, and on the balance check page.
• Send reminder notifications before a card expires so the holder has a chance to use it.
• Keep expired card records in the database for accounting and audit purposes—don’t delete them.