Do gift cards expire? Federal law says not for at least 5 years, but many states ban expiration entirely. Here's what you need to know about expiration, fees, and bankruptcies.
We get this question all the time at CardDepot.com: do gift cards expire?
Short answer — not for a long time, and in many cases, never. Federal law requires gift cards to stay valid for at least five years, and a lot of states go further by banning expiration entirely. But the details matter, especially when it comes to the difference between a store gift card and a prepaid Visa card, and what happens if a retailer goes under.
The Federal Rule: Five Years Minimum
The CARD Act of 2009 (Credit Card Accountability Responsibility and Disclosure Act) set the nationwide floor for gift card protections. Under this law:
- Gift cards can't expire for at least five years from purchase, or from the last time funds were loaded onto the card.
- No inactivity or dormancy fees for the first 12 months.
- After that 12-month window, issuers can only charge one fee per month.
- All fees and expiration terms have to be disclosed on the card or its packaging before you buy.
This applies to store gift cards and general-use prepaid cards (the Visa/Mastercard kind). It does not apply to paper-only gift certificates, loyalty/promotional cards you didn't pay for, or tickets for events and venues.
Many States Ban Expiration Altogether
The CARD Act is just the floor. A bunch of states have gone further.
California, Connecticut, Maine, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and several others prohibit expiration dates on gift cards entirely. Your balance just sits there until you use it.
And because most big national retailers don't want to deal with 50 different sets of rules, they've generally adopted the strictest standard across the board. That's why you'll notice that a Home Depot or Nike gift card doesn't have an expiration date on it, regardless of which state you're in. Every closed-loop retailer gift card we sell at CardDepot.com works the same way — no expiration, period.
Some states also extend the fee-free window well beyond the federal 12 months. Arkansas, Kansas, Maryland, Nevada, New York, North Carolina, Ohio, and Tennessee tack on an extra one to four years. California, Oklahoma, and Washington don't allow fees for three years, and cap them at $1/month after that.
One Thing Most People Don't Know: Escheatment
If you leave a gift card untouched for long enough, the state may actually claim your balance. It's called escheatment — basically, unclaimed property laws. The retailer is required to turn over dormant gift card balances to the state after a set period (usually 3–5 years of inactivity). Your money doesn't vanish — you can get it back through your state's unclaimed property program — but it's a hassle, and one more reason not to let gift cards collect dust.
States that do this include Colorado, Delaware, Georgia, Hawaii, Idaho, Iowa, Louisiana, Maine, Mississippi, Montana, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Oklahoma, South Dakota, West Virginia, and Wyoming, among others.
Store Cards vs. Prepaid Visa/Mastercard Cards
These two types of gift cards play by different rules in practice, even though the same federal law covers both.
Store gift cards (the ones tied to a single retailer — Home Depot, Starbucks, Nike, etc.) almost never come with fees, and if the retailer is a major national brand, the card won't expire. Again, every brand we carry at CardDepot.com falls into this category. No expiration, no fees.
Prepaid Visa/Mastercard/Amex gift cards are a different story. They follow the five-year federal rule, but they're more likely to carry costs: an activation fee at the register ($3–$7 is typical), plus monthly maintenance fees that can kick in after 12 months of not using the card.
One thing that confuses people: the "valid through" date printed on a prepaid card. That date is mostly there for transaction processing and fraud prevention — it doesn't necessarily mean your money is gone. If the physical card expires but there's still a balance, the issuer is generally required to send you a replacement card at no charge. Call the number on the back and ask.
What If a Store Goes Bankrupt?
This is the real risk nobody thinks about, and it has nothing to do with expiration dates.
When a retailer files for Chapter 11 bankruptcy (reorganization), they might keep accepting gift cards — but only if the bankruptcy court says so. There could be restrictions on how or where you can use them. If you hear a company is in financial trouble, don't wait. Spend that card now.
When a retailer goes into Chapter 7 liquidation, a liquidator takes over and gift cards typically stop working. You can file a proof of claim with the bankruptcy court, but gift card holders are unsecured creditors — dead last in the repayment line behind banks, suppliers, landlords, and employees. The odds of getting your money back are slim.
We've seen this play out over and over. Borders had $210 million in outstanding gift cards when they went under. Card holders got nothing. When Toys R Us closed, some competitors ran limited-time promotions letting you trade in your worthless card for a store discount — but those deals didn't last.
A few things worth trying if you're stuck:
- If you bought the gift card with a credit card, call your card issuer. Some will reverse the charge.
- Look for competitor exchange offers — they pop up occasionally after high-profile bankruptcies.
- Check if another company bought the brand name. Sometimes a new owner relaunches the website, but they're not required to honor old gift cards. (This happened with Coldwater Creek and Linen's n Things, among others.)
Quick Tips
Use your gift cards soon. The number one reason people lose money on gift cards isn't expiration — it's procrastination. Cards get lost, balances get forgotten, stores close.
Know your state's cash-out law. A bunch of states require merchants to give you cash back when your gift card balance drops below a certain amount (usually $5 or $10). We put together a state-by-state guide that covers the specifics.
Register prepaid cards. If you get a Visa or Mastercard gift card, register it on the issuer's website. This lets you use it online (most sites need a billing address) and protects you if the card is lost or stolen.
Hang onto your receipt. If a retailer goes bankrupt or there's a dispute, the receipt is your proof.
Consolidate small balances. Got $3.47 left on a Visa gift card? Buy an Amazon gift card for that exact amount (they accept custom values starting at $1) and add it to your Amazon balance. Way easier than trying to split a payment at checkout.
Bottom Line
Federal law gives you five years. Most states give you more. And store-branded gift cards from national retailers — including every card we sell at CardDepot.com — don't expire at all.
The real threats to your gift card balance are losing the card, forgetting about it, or having the retailer go bankrupt. The fix is simple: buy cards from established brands, and use them.
At CardDepot.com, every card we sell is a closed-loop retailer card from a trusted national brand — no expiration, no fees, and always below face value.
More gift card tips on our Tips & Tricks page.
