November 3, 2026 · 4 min read

Do Gift Cards Expire? The Five-Year Rule, Dormancy Fees and When to Use Yours

In the US, a store gift card generally can't expire for at least five years, and fees are limited. But promotions, paper cards and state rules differ. Here is what the federal rule says and a simple plan for the cards in your drawer.

Hands holding a fan of burning hundred-dollar bills up in front of a face

Gift cards pile up after the holidays, and many end up forgotten in a drawer. If you are wondering whether yours has already expired, there is a useful federal rule in the US. It sets a five-year minimum before most store gift cards can expire, and it limits fees on unused cards. It does not cover everything, so here is what it says, where it stops, and a plain way to use your cards before they cost you.

The federal rule in one paragraph

The Credit CARD Act of 2009 added gift card rules to US law (15 U.S.C. 1693l-1), and the Federal Reserve wrote the detailed regulations in 2010. As summaries of those rules describe them, money on a covered card generally cannot expire sooner than five years after the date it was bought or the date money was last added to it. If a card shows an earlier date, the balance can be moved to a replacement card at no extra cost.

Sources: the Pew Trusts summary of the Federal Reserve's final rule and the statute text, 15 U.S.C. 1693l-1.

Fees: what is limited

The rules also restrict inactivity (dormancy) fees. In general, a fee can only be charged if the card has not been used for at least a year, and only one such fee per month. The expiry date and any fees have to be clearly disclosed.

What the rule does not cover

Promotional cards. A bonus card handed out with a purchase, for example a $15 card for spending $100, can have a much shorter expiry and different fee terms.
Paper-only certificates for tickets or events. Summaries of the rule describe these as exempt.
Other kinds of balances, such as store credit or loyalty points, which follow their own terms.

When a card is a promotion, the date printed on it is the one to trust. Look at the back or the fine print today, not in March.

State rules can be stricter

The federal rule is a floor. Some states go further: a few limit or ban expiry dates on certain cards, and some require a merchant to pay back a small remaining balance in cash. The threshold and the cards covered vary by state, and older state-by-state tables online are often out of date. For your own state, check your state attorney general's consumer pages.

There is also unclaimed property law. If a balance sits untouched for long enough, some states can treat it as unclaimed property. Dormancy periods differ, so this is another reason not to leave a card forgotten for years.

A simple plan for the cards you have

Write the balance and any date on a sticky note or in one place. Many cards let you check the balance online or by phone.
Use the oldest and smallest balances first. Odd amounts like $6.40 are the ones that get lost.
Check promotional cards separately, since they may expire in weeks or months.
Keep the receipt or card number in case a card is lost. A lost physical card is often treated like cash.
Set one check-in for a month after the holidays, when you are free and the cards are fresh in your mind.

Frequently asked questions

Do gift cards expire after one year? Not usually. Under the federal rule, most store gift cards must last at least five years from purchase or the last time money was added. Promotional cards are a common exception.

Can a company charge fees on an unused gift card? The federal rule limits inactivity fees: generally only after a year without use, and one per month, with clear disclosure.

Is a gift card with an old expiry date worthless? Not necessarily. If a covered card shows an expiry earlier than the federal minimum, the balance can generally be moved to a replacement card.

What about small leftover balances? Some states require a cash refund below a certain amount. This varies by state, so check your state's rules or ask the store.

Is this legal advice? No. It is a general overview of US rules. Terms differ by card and by state, so check the card's own terms for the details that apply to you.

How ReminderIt helps

The usual way gift cards get wasted is simple forgetting. ReminderIt calls your phone at the time you choose and sends a WhatsApp message with Done and Snooze buttons, so the card doesn't stay in the drawer.

Message ReminderIt on WhatsApp something like "Remind me on 15 January to use my gift cards" or "Remind me next Saturday to check the balance on the coffee shop card". There's a 7-day free trial with no card, then it's $7/month.