Colorado is moderately strict. State law prohibits expiration dates on most gift certificates and requires cash redemption for remaining balances under $5 upon request. Dormancy fees are tightly restricted.
Federal context
Under the federal Credit CARD Act of 2009 and its implementing Regulation E (12 CFR 1005.20), gift certificates and most general-use and store gift cards sold in the United States must remain valid for at least five years from the date of issuance or last load. Federal law also restricts dormancy, inactivity, and service fees: a fee can generally be charged only if the card has been inactive for at least 12 months, the fee is disclosed, and no more than one fee is charged per month. State laws may add stronger consumer protections on top of this federal floor.
For a deeper federal explainer, see our CARD Act overview.
Expiration rules in Colorado
Colorado Revised Statutes §6-1-722 generally prohibits expiration dates on gift cards. The statute covers single-merchant gift cards and was strengthened in recent legislative sessions to broaden coverage.
Promotional or loyalty-program certificates can have expiration dates under narrow circumstances, but the standard retail or service-business gift card sold in Colorado should not have an expiration.
Dormancy and service fees in Colorado
Colorado restricts dormancy and service fees on gift cards. The federal CARD Act 12-month rule provides a floor; Colorado's restrictions further limit when and how fees can be charged.
Most Colorado operators choose to charge no fees at all to avoid compliance complexity.
Cash redemption for small balances
Colorado requires merchants to redeem the cash value of gift cards with remaining balances less than $5 upon request of the holder. This is similar to the California rule but with a $5 threshold instead of $10.
Operationally: train staff to recognize the threshold and configure POS to prompt cash redemption when balances fall below $5.
Disclosure requirements
Standard federal Regulation E disclosures apply. Colorado operators should also clearly state the no-expiration policy and the under-$5 cash redemption rule.
Unclaimed property and escheatment
Because Colorado gift cards generally cannot expire, the underlying obligation persists, and single-merchant gift card balances generally are not subject to escheat. Open-loop and bank-issued cards may have different treatment.
Enforcement and penalties
Enforcement is led by the Colorado Attorney General's Consumer Protection Section under the Colorado Consumer Protection Act. Violations can lead to civil penalties, restitution, and injunctive relief.
Recent updates
Colorado has periodically strengthened gift card consumer protections; operators should monitor sessions of the Colorado General Assembly for further amendments to §6-1-722.
Last reviewed: May 24, 2026. Statutes change. Verify the current text of the cited statute before acting on this summary.
Colorado compliance checklist
A short operational checklist for selling gift certificates in Colorado. Adapt with counsel before publishing your final policy.
- Configure all gift cards to never expire.
- Train staff and configure POS to recognize the under-$5 cash redemption requirement.
- Avoid charging dormancy or service fees.
- Display the gift card policy at the point of sale.
- Maintain perpetual recordkeeping of issued certificates.
Frequently asked questions about Colorado gift card law
What's the cash redemption threshold in Colorado?
Under $5. If a customer requests it, you must redeem any remaining balance below $5 in cash. Above $5, you can ask the customer to use the remainder on a future purchase.
Does Colorado require a specific notice on the gift card?
There is no specific font or notice formula required, but the no-expiration and cash-redemption rules should be clearly stated as part of the terms.
Related legal basics
- Do Gift Certificates Expire? — A practical overview of federal and state rules on gift certificate expiration, written in plain English.
- Can You Charge Fees on Gift Certificates? — Federal and state rules on inactivity, dormancy, and service fees for gift cards.