Do Gift Certificates Expire?
A practical overview of federal and state rules on gift certificate expiration, written in plain English.
The short answer is: most gift certificates and gift cards sold in the US cannot expire for at least five years from activation, under federal consumer protection rules. Some states require longer minimums or prohibit expiration entirely. This is general guidance for small business owners and is not legal advice.
Federal baseline
Federal consumer protection rules, established under the Credit CARD Act, generally require that gift cards (including most paper gift certificates) be valid for at least five years from the date of activation or load. Federal rules also restrict dormancy and inactivity fees.
These rules apply across the US as a floor. State laws may add stricter protections on top.
State overlay
Many states have additional gift certificate laws, including:
- Longer minimum expiration periods (some states require no expiration at all)
- Cash redemption requirements when remaining balances fall below a small threshold
- Restrictions on service and dormancy fees beyond federal limits
- Specific disclosure language requirements on the certificate itself
Practical recommendation
Many SMBs choose the simplest path: either follow the five-year federal minimum or set no expiration at all. Both reduce customer-service friction and minimize compliance risk.
If you set an expiration, always have an attorney confirm the date is compliant with your state's specific rules.
Related legal basics
- Gift Certificate vs. Gift Card — Legal and practical differences between gift certificates and gift cards in the US.
- Can You Charge Fees on Gift Certificates? — Federal and state rules on inactivity, dormancy, and service fees for gift cards.
Frequently asked questions
Can I set a one-year expiration on my gift certificates?
In most states, no. Federal rules typically require at least a five-year minimum, and state rules may extend this. Setting a short expiration without legal review puts you at risk.
What happens to unredeemed certificates after the expiration period?
This is governed by state unclaimed property law. Many states require unredeemed gift card balances to be remitted to the state after a defined dormancy period. Consult an attorney.