Do Gift Cards Expire? A Legal and Marketing Breakdown

If you’re offering gift cards, one of the first questions customers ask is:
Do these expire?

The short answer:
Most gift cards legally can’t expire for at least five years. But there’s more to it than that — and how you message it matters for both trust and conversions.

What the Law Says

Thanks to the Credit CARD Act of 2009, federal law requires that:

• Gift cards can’t expire for at least five years from the date of purchase or last load
  
  
• Inactivity fees (like monthly maintenance) are limited, and only allowed after one full year of no use
  
  

That covers most general-use and retailer gift cards.

But there are exceptions:

• Promotional gift cards (e.g. a free $10 bonus card) can expire earlier
  
  
• State laws may add more restrictions — some states even require gift cards to stay valid indefinitely
  
  

Always check your state’s consumer protection rules if you're unsure.

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What’s the difference between a promotional and a regular gift card?

A regular gift card is paid for by the customer and treated like cash — it usually can’t expire for at least five years. A promotional gift card, on the other hand, is free or part of a limited-time deal (like “Get a $10 bonus card when you spend $50”). Since it’s considered a promotion, it can legally have a shorter expiration window and more restrictions — but you still need to disclose those terms clearly.

What This Means for Marketing

From a marketing perspective, expiration dates can work for or against you.

If your cards never expire:

• Say so clearly — it builds trust
  
  
• Great for big-ticket items or slower customer journeys
  
  

If your cards do expire (e.g. promos):

• Be upfront — use it as urgency, not fine print
  
  
• Example: “Bonus card valid through July 31st — don’t miss out!”
  
  

Clear terms avoid complaints, drive faster redemptions, and reduce abandoned checkouts.

How Ncentiva Helps

Ncentiva makes it easy to set clear expiration policies, manage different types of gift cards (paid, promo, employee, etc.), and keep your terms visible across delivery and redemption.

Plus, you get real-time data on balances, usage rates, and unredeemed value — so you can optimize both for compliance and marketing performance.

Want to simplify your gift card program while staying compliant?

Talk To Ncentiva

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