Gift Certificate Terms and Conditions: What to Include
A clause-by-clause guide to the terms that protect your business and meet baseline consumer rules.
Terms and conditions on a gift certificate are short, but each clause matters. Below is a clause-by-clause framework you can adapt with your attorney. This article is general guidance, not legal advice — laws vary by state and business type.
Redemption clause
Start with what the certificate is redeemable for. Be specific — products, services, both, in-store only, online included? Clarity here prevents disputes later.
Expiration clause
Federal consumer guidance generally requires gift cards not expire for at least five years from activation. Some states require longer or prohibit expiration entirely. Always confirm with an attorney for your state.
Fees clause
Inactivity, dormancy, and service fees are tightly restricted at both the federal and state level. Many SMBs avoid them entirely to reduce risk and customer complaints.
Lost or stolen clause
Default: not replaced. You may grant exceptions at your discretion when buyer records confirm non-redemption.
Cash redemption clause
Several states require cash redemption when the remaining balance falls below a small threshold. Include language that respects your state's rules.
Combinability clause
State whether the certificate can be combined with discounts or promotions. Most SMBs say "not combinable with other offers unless noted."
Gratuity clause
For service businesses, state explicitly that gratuity is not included.
Transferability clause
Most certificates are transferable by default. If you want to limit transferability, say so explicitly.
Related templates
Related guides
- Gift Certificate Policy Example for Small Businesses — A copy-paste policy framework covering expiration, fees, lost certificates, and combinability.
Frequently asked questions
Do I need a lawyer for this?
Yes, especially if you operate in multiple states or sell high gift certificate volume. The cost is low relative to the downside of a customer complaint or regulatory action.
Where should I post the full terms?
On the certificate itself (compact version), on the purchase page (linked), and in your customer-facing FAQ or terms-of-service page.