Texas generally follows the federal CARD Act baseline. The state had a one-year minimum expiration rule that was effectively superseded by the federal five-year floor. Unclaimed property reporting can apply to certain gift card balances.
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 Texas
Texas Business and Commerce Code §604.002 historically allowed gift certificates to have one-year expiration periods with disclosure, but the federal CARD Act five-year floor effectively supersedes this for most gift certificates issued today.
Operators should set expiration to no less than five years from issuance, or eliminate expiration entirely.
Dormancy and service fees in Texas
Federal CARD Act limits apply. Dormancy fees can be charged only after 12 months of inactivity, with disclosure, and no more than one fee per month.
Cash redemption for small balances
Texas does not require small-balance cash redemption.
Disclosure requirements
Federal Regulation E disclosures apply. Disclose expiration and fees clearly on the certificate.
Unclaimed property and escheatment
Texas's Unclaimed Property Act may apply to unredeemed gift card balances after a defined dormancy period. Single-merchant programs typically qualify for an exemption.
Enforcement and penalties
The Texas Attorney General's Office Consumer Protection Division enforces state consumer protection laws. Federal CARD Act enforcement is shared by the CFPB and FTC.
Recent updates
No material state-level statutory changes for gift card consumer protection in the last 24 months.
Last reviewed: May 24, 2026. Statutes change. Verify the current text of the cited statute before acting on this summary.
Texas compliance checklist
A short operational checklist for selling gift certificates in Texas. Adapt with counsel before publishing your final policy.
- Set expiration to no less than five years or eliminate expiration entirely.
- Disclose fees clearly at sale.
- Maintain redemption records for unclaimed property purposes.
- Confirm single-merchant exemption applies before relying on it.
Frequently asked questions about Texas gift card law
Texas state law allowed a one-year expiration. Why use five years?
The federal CARD Act preempts shorter state minimums. The federal five-year floor effectively replaces the older Texas one-year rule.
Are gift cards subject to Texas sales tax at point of sale?
Generally no. Sales tax applies at redemption. Consult your CPA for specifics.
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.