Do Gift Cards Expire

Here's What You Need to Know Before Gifting in 2025

You’ve just found a gift card tucked in a drawer from last year’s holiday season and you’re wondering — does it still work? The question, “Do gift cards expire?” is surprisingly complex. Whether you're buying a card for a friend, a family member, or treating yourself, it's important to understand the terms of the card to avoid unpleasant surprises later.

In this guide, we’ll explain what determines a gift card’s expiration date, the differences between types of gift cards, relevant federal and state laws, and how to steer clear of gift card scams.

Gift Cards vs. Prepaid Cards: Know the Difference

Before diving into expiration rules, let’s clarify the two most common types of gift cards:

1. Gift Cards (Closed-Loop Cards)

These are the gift certificates or cards you get for specific retailers or restaurants — think Target, Starbucks, or Amazon. They can only be used at the brand that issues them and typically don’t have additional fees (with some exceptions for inactivity after long periods of non-use).

✅ Federal law prohibits expiration for at least 5 years on these cards.
✅ Some states, like California, prohibit expiration altogether.

2. Prepaid Cards (Open-Loop Cards)

These are the Visa, Mastercard, American Express, or Discover gift cards that can be used virtually anywhere the payment network is accepted. While more flexible, they often come with extra costs such as:

• Activation fees
• Monthly maintenance fees
• ATM withdrawal fees

Unlike store-specific gift cards, prepaid cards may have shorter expiration windows — often 3 months to 5 years — and are more likely to incur ongoing charges. Always read the fine print carefully when purchasing these.

So, Do Gift Cards Expire?

Let’s break this into two parts:

Can Gift Cards Expire?

Yes — but there are important limitations:

• The Credit CARD Act of 2009 mandates that most gift cards cannot expire within five years of activation.
• It also restricts dormancy and inactivity fees unless the card has been unused for 12 months and the terms are clearly disclosed.
• However, state laws can offer stronger protections. States like California, Florida, and Illinois ban expiration dates entirely on most gift cards.

Do Gift Cards Expire in Practice?

Not usually. Most large national retailers follow the strictest state rules across the board to avoid regulatory headaches. That means many gift cards effectively never expire, even if they have an expiration date printed on them.

🛑 Smaller or local businesses may still enforce expiration timelines, especially if they don't operate in states with strict gift card laws. Always check with the card issuer or merchant for details.

State Laws: Why Your Zip Code Matters

Federal rules set the baseline, but your state’s laws may offer even more protection. For example:

• California: No expiration allowed on most gift cards.
• Connecticut: No expiration unless the card is unused for 3 years.
• New York: Most gift cards must remain valid for at least 5 years, and inactivity fees are banned for 25 months.

If you’re unsure, check your local consumer protection office or the card issuer’s website to confirm the card expiration date rules in your state.

Gift Card Scams: A Year-Round Concern

While the holiday season is peak time for shopping and giving, it’s also a high-risk period for gift card scams. Scammers often impersonate authority figures, demanding money gifts via prepaid cards or requesting gift card PINs under false pretenses.

Here are a few red flags to watch for:

• You're told to pay a bill or fine with a gift card — no legitimate organization will ask for this.
• Someone offers to send you a check for more than your selling price and asks you to refund the difference using a gift card — this is a classic overpayment scam.
• A "family member" is in legal trouble and needs help urgently via a gift card — almost always a scam.

🎯 Pro Tip: Always buy gift cards from trusted retailers and inspect physical cards to ensure the PIN hasn’t been scratched off.

Tips for Buying and Using Gift Cards

1. Always read the fine print – Check the expiration date and fee structure before buying.
2. Register the card – If possible, register your card online. This can help you recover lost or stolen funds.
3. Keep the receipt – If a card is lost or stolen, having proof of purchase and the card number may help you recover some or all of the balance.
4. Don’t buy from unknown websites – These may be counterfeit or previously used.

Final Thoughts: Should You Still Buy Gift Cards?

Absolutely. Despite concerns over expiration and scams, gift cards remain one of the most popular and flexible gifting options — especially during the busy school year, after a final exam, or as a thoughtful money gift during a graduation ceremony or holiday season.

Just be sure to educate yourself (and your recipient) on the card’s terms and store it safely. Whether you’re celebrating a birthday, a college graduation, or a special milestone, being informed helps you get the most value out of your gift.

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