in What You Need To Know Published on July 11, 2013

Gift Cards Expiration Laws – A State By State Review

Last Updated on June 27, 2017

Gift cards may be more complicated than you think. While they’re a convenient gift and a nice bonus when offered as part of a store promotion, gift cards inhabit a strange middle ground between cash and certificate. Is the balance of a gift card always yours? What if they expire? Can they expire? If they can expire, what happens to the money? These questions matter, and the recent case of Borders bookstore – in which the store, now bankrupt, was unable to redeem consumers’ cards worth an estimated $211 million – shows that if you’re not informed, you can lose out.

It’s important to understand what you’re buying according to the state in which you buy and use a gift card.

What makes everything a lot more complicated is the fact that depending on the state you’re in, laws regulating gift cards can change quite a bit.

Firstly, there are some federal laws which apply across the board. Gift cards may not expire before five years after the date they were purchased. Similarly, a reloadable gift card’s funds are valid for five years from the date it was reloaded. Federal law also stipulates that fees must be disclosed either on the card itself or associated packaging, that post-sale fees can’t be imposed until the card has been inactive for more than one year, and that only one post-sale fee per month is permitted.

On a state-by-state basis, the biggest differences consumers face are the rules governing fees, the rules on whether balances escheat – that is, return to – the state if unclaimed, the rules on whether cards can be reclaimed for cash, and the rules on whether a legal definition separates gift cards and gift certificates.

It’s important to understand what you’re buying according to the state in which you buy and use a gift card.

Maximum post-sale fee limit

Yes	No
Colorado – No post-sale fees allowed	Alabama	North Carolina
Connecticut – No post-sale fees allowed	Alaska	Ohio
Florida – No Post-sale fees allowed	Arizona	Oklahoma - $1.00 per month after two years on reloadable cards with balance less than $5.00
Illinois - No post-sale fees allowed	Arkansas	Pennsylvania
Kentucky – No post-sale fees allowed	California	South Carolina
Louisiana – No post-sale fees allowed. Maximum purchase fee of $1.00	Delaware	South Dakota
Maine – No post-sale fees allowed	DC	Tennessee
Massachusetts - No post-sale fees allowed	Georgia	Texas
Michigan – No post sale fees allowed	Hawaii - $5.00 purchase fee per card, or 10% of entire value, but no post sale fees	Utah
Minnesota – No post sale fees allowed	Idaho	Virginia
Montana – No post sale fees allowed	Indiana	West Virginia
New Hampshire - No post sale fees allowed	Iowa	Wisconsin
New Mexico - No post sale fees allowed	Kansas	Wyoming
North Dakota - No post sale fees allowed	Maryland	Nebraska-
Oregon - No post sale fees allowed	Mississippi	New Jersey
Rhode Island – No post sale fees allowed	Missouri	New York
Vermont - No post sale fees allowed
Washington - $1.00 per month after two years on re-loadable cards with balance less than $5.00

Minimum time frame before charging fees

Yes	No
Arkansas – Two years from purchase, unlimited fees may be applied	Alabama
California - $1.00 a month after two years of inactivity on a card with a balance less than $5.00	Alaska
Colorado – No post-sale fees allowed	Arizona
Connecticut – No post-sale fees allowed	Delaware
Florida – No post-sale fees allowed	DC
Hawaii - No post-sale fees allowed	Georgia
Illinois - No post-sale fees allowed	Idaho
Kansas – One year, after which any amount may be charged in fees.	Indiana
Kentucky – No post-sale fees allowed	Iowa
Louisiana – No post-sale fees allowed	Mississippi
Maine – No post-sale fees allowed	Missouri
Maryland – Four years after purchase	Nebraska-
Massachusetts - No post-sale fees allowed	Pennsylvania
Michigan – No post sale fees allowed	South Carolina
Minnesota – No post sale fees allowed	South Dakota
Montana – No post sale fees allowed	Texas
New Hampshire - No post sale fees allowed	Utah
New Jersey – Two years after purchase	Virginia
New Mexico - No post sale fees allowed	West Virginia
New York – One year after purchase	Wisconsin
North Carolina – One year after purchase	Wyoming
North Dakota - No post sale fees allowed
Ohio –Two years after purchase
Oklahoma - $1.00 per month after two years on reloadable cards with balance less than $5.00
Oregon - No post sale fees allowed
Rhode Island – No post sale fees allowed
Tennessee – Two years after purchase
Vermont - No post sale fees allowed
Washington - $1.00 per month after two years on reloadable cards with balance less than $5.00

Merchants Required To Offer Cash back

Yes	No
California – If balance is less than $10.00	Alabama	Iowa
Colorado – If balance is less than $5.00	Alaska	Kansas
Maine – If balance is less than $5.00	Arizona	Kentucky
Massachusetts – After 90% of balance has been redeemed	Arkansas	Louisiana
Montana – If balance is less than $5.00	Connecticut	Maryland
New Jersey – If balance is less than $5.00	Delaware	Michigan
Oregon – If balance is less than $5.00	DC	Minnesota
Rhode Island – If balance is less than $1.00	Florida	Mississippi
Vermont – If balance is less than $1.00	Georgia	Missouri
Washington – If balance is less than $5.00	Hawaii	Nebraska-
	Idaho	New Hampshire
	Illinois	New Mexico
	Indiana	New York
	North Carolina	North Dakota
	Ohio	Oklahoma
	Pennsylvania	South Carolina
	South Dakota	Tennessee
	Texas	Utah
	Virginia	West Virginia
	Wisconsin	Wyoming

Balance Escheats to State

Yes	No
Alaska – If card has expiration date and is unused for three years	Alabama
Colorado – After five years of inactivity	Arizona
Delaware - After five years of inactivity	Arkansas
DC - After five years of inactivity	California
Georgia - After five years of inactivity	Connecticut
Hawaii - After five years of inactivity	Florida
Idaho – If balance is more than $50.00 and card has no expiration date displayed, after five years of inactivity.	Indiana
Illinois – If card has expiration date displayed, after five years of inactivity	Maryland
Iowa – After three years of inactivity	Massachusetts
Louisiana – After three years of inactivity, on December 31^st.	Michigan
Maine - After five years of inactivity	Minnesota
Mississippi – After five years of inactivity	Ohio
Montana – After three years of inactivity, on December 31st	Rhode Island
Nebraska- If card has expiration date displayed, after three years of inactivity	Utah
New Hampshire – After five years of inactivity, if balance is more than $100	Vermont
New Jersey – After five years of inactivity	Wisconsin
New Mexico – After five years of inactivity, on December 31st
New York – After five years of inactivity
North Carolina - If card has expiration date and is unused for three years
North Dakota – After three years of inactivity
Oklahoma – After five years of inactivity
Pennsylvania – Cards with expiration date, after two years
South Dakota – After five years of inactivity
Tennessee - Cards with expiration date, after two years
Texas - Cards with expiration date, after two years
Virginia - Cards with expiration date, after five years
Washington- Cards with expiration date, after three years
West Virginia – After three years, on December 31st
Wyoming – Cards sold above $100, after three years

Unknown: Kansas, Kentucky, Missouri, Oregon, South Carolina

Cards and Certificates Legally Defined

Yes	No
Kansas	Alabama	Colorado
Kentucky	Alaska	Delaware
Louisiana	Arizona	DC
Maine	Arkansas	Idaho
Maryland	California	Indiana
Massachusetts	Connecticut	Rhode Island
Michigan	Florida	Utah
Minnesota	Georgia	West Virginia
Mississippi	Hawaii	Wyoming
Missouri	Illinois
Montana	Iowa
Nebraska	New Jersey
New Mexico	New York
North Carolina	North Dakota
Ohio	Oklahoma
Oregon	Pennsylvania
South Carolina	South Dakota
Tennessee	Texas
Vermont	Virginia
Washington	Wisconsin

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Last Updated on June 27, 2017 — 5:53 AM

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