Gift Card Laws by State (2025): A Complete U.S. Guide

Alabama

• Expiration rules: Follows federal 5-year minimum.
• Fees: No special state restrictions beyond federal rules.
• Escheatment: Unused balances are generally not subject to escheatment.
• Breakage: Standard handling; no extra state rules.
• Cash-back: No cash-back requirement.
• Minimum balance: No rule.

Other notes:
Alabama keeps things simple. The state mostly defers to federal law. No major unusual restrictions.

Alaska

• Expiration rules: No expiration allowed*
• Fees: No inactivity or service fees allowed*
• Escheatment: Exempt from unclaimed property rules
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Alaska bans expiration and fees entirely unless the card is for a charity event or promotional use. This is stricter than federal law, and it applies to nearly all consumer gift cards.

Arizona

• Expiration rules: No expiration allowed*
• Fees: No inactivity fees allowed
• Escheatment: Exempt from escheatment
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Arizona prohibits expiration dates on most gift cards. It also exempts gift cards from escheatment, meaning unused balances stay with the merchant.

Arkansas

• Expiration rules: No expiration allowed
• Fees: Inactivity fees allowed only after 2 years of no use*
• Escheatment: Gift cards generally exempt
• Breakage: Merchant retains breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
The 2-year inactivity rule is unusual because federal law uses a 12-month inactivity period for fees. Arkansas law is stricter in practice since it delays when fees can begin.

California

• Expiration rules: No expiration allowed
• Fees: No fees allowed except for replacement cards*
• Escheatment: Exempt from escheatment
• Breakage: Merchant keeps breakage
• Cash-back: Required for balances under $10*
• Minimum balance: N/A

Other notes:
California has some of the strongest consumer protections in the country. The $10 cash-back rule is one of the most generous. A card can only expire if it’s a promotional gift card provided at no cost.

Colorado

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Subject to escheatment after 3 years*
• Breakage: Must follow escheatment timelines
• Cash-back: Required for balances under $5*
• Minimum balance: None

Other notes:
Colorado is unusual in that it bans expiration but still requires unclaimed balances to be turned over after 3 years. The $5 cash-back rule is also unique among states.

Connecticut

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Required after 3 years*
• Breakage: Reportable as unclaimed property
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Connecticut is one of the few states where gift cards don’t expire but still fall under unclaimed property rules. Merchants need to be aware of the 3-year escheatment clock.

Delaware

• Expiration rules: No expiration allowed
• Fees: No inactivity or service fees allowed
• Escheatment: Not subject to escheatment*
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Delaware is one of the few states that completely exempts gift cards from unclaimed property laws. This means unused balances stay with the merchant, which is unusual compared to surrounding states.

Florida

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Generally exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Florida has simple rules. It bans expiration and fees for almost all consumer gift cards. Loyalty rewards given at no cost may be treated differently.

Georgia

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Exempt from unclaimed property
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Georgia law is straightforward. If the card is purchased, it can’t expire and can’t have any post-purchase fees.

Hawaii

• Expiration rules: Allowed after 5 years if clearly disclosed*
• Fees: Fees allowed if disclosed
• Escheatment: Gift cards are exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Hawaii allows expiration dates only if they are clearly printed and if the card lasts at least 5 years. This is less strict than many states.

Idaho

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Gift cards are exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Idaho keeps rules simple. If a customer pays for the gift card, it cannot expire or have extra fees later.

Illinois

• Expiration rules: No expiration allowed
• Fees: No fees unless card is promotional*
• Escheatment: Required after 5 years
• Breakage: Reportable as unclaimed property
• Cash-back: Required under $5*
• Minimum balance: None

Other notes:
Illinois requires merchants to provide cash-back when a balance is under $5. The state also requires reporting unused balances after 5 years, even though gift cards do not expire.

Indiana

• Expiration rules: No expiration rules beyond federal
• Fees: Fees allowed if disclosed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: No rule

Other notes:
Indiana has lighter rules. Most gift cards remain under federal standards without added state restrictions.

Iowa

• Expiration rules: No expiration allowed
• Fees: Fees allowed only at the time of purchase*
• Escheatment: Required after 3 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Iowa allows fees only if they are charged upfront when the card is first sold. No added fees can be added later, which is more strict than federal rules.

Kansas

• Expiration rules: No expiration allowed
• Fees: No inactivity or service fees allowed
• Escheatment: Required after 5 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Kansas bans expiration and post-purchase fees but still requires unclaimed balances to be turned over to the state after five years.

Kentucky

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Required after 3 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Kentucky’s rules are simple: cards cannot expire or have inactivity fees, but unused balances must be reported after three years.

Louisiana

• Expiration rules: Allowed after 5 years if printed on card*
• Fees: No inactivity or service fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Louisiana allows expirations only if they follow federal minimums and are clearly disclosed. Most other consumer protections are stronger, including a complete ban on inactivity fees.

Maine

• Expiration rules: No expiration allowed*
• Fees: No fees allowed
• Escheatment: Required after 2 years*
• Breakage: Reportable
• Cash-back: Required under $5
• Minimum balance: None

Other notes:
Maine has some of the strictest rules. No expiration or fees apply at all. But Maine's escheatment period is unusually short—unused balances must be turned over after only two years.

Maryland

• Expiration rules: No expiration allowed
• Fees: No inactivity or service fees allowed*
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Maryland’s ban on both expiration and inactivity fees makes the state consumer-friendly. Loyalty or promotional cards may be treated differently depending on how they are issued.

Massachusetts

• Expiration rules: Allowed after 7 years minimum*
• Fees: No fees for the first 7 years*
• Escheatment: Required after 7 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Massachusetts is unusual because it allows expiration dates but only after seven years. Fees are banned until the same seven-year mark.

Michigan

• Expiration rules: No expiration allowed
• Fees: No post-purchase fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Michigan rules are simple and mostly protect consumers. Once issued, a gift card cannot expire or accumulate extra charges.

Minnesota

• Expiration rules: No expiration allowed
• Fees: No fees allowed except for activation fees*
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Minnesota allows activation fees only when the card is sold by a third party. After purchase, no additional fees may be added.

Mississippi

• Expiration rules: No specific rule; federal standard applies
• Fees: Fees allowed if disclosed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Mississippi’s rules are basic and rely mostly on the federal CARD Act. The state does not impose added requirements on merchants.

Missouri

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Missouri keeps rules simple. Purchased gift cards can’t expire or carry fees, and unused balances stay with the merchant.

Montana

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Required after 3 years
• Breakage: Reportable as unclaimed property
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Montana bans both expiration and fees, but still requires unclaimed balances to be turned over after three years.

Nebraska

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Required after 5 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Nebraska follows a common pattern: gift cards cannot expire or accumulate fees, but any leftover balance becomes unclaimed property after five years.

Nevada

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Nevada follows a strict consumer-protection model—no fees and no expiration—but does not require escheatment.

New Hampshire

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Required after 3 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
New Hampshire doesn’t allow expiration or inactivity fees but still collects unclaimed property after three years. It also distinguishes between gift cards and loyalty rewards.

New Jersey

• Expiration rules: No expiration allowed
• Fees: No fees for the first 24 months*
• Escheatment: Required after 5 years
• Breakage: Reportable
• Cash-back: No cash-back requirement
• Minimum balance: None

Other notes:
New Jersey used to have very strict rules requiring consumer registration of gift cards. These rules have since been relaxed. The unusual part today is the prohibition of any fees for the first two years after the card is issued.

New Mexico

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
New Mexico’s approach is simple: no expiration, no inactivity fees, and no escheatment. Promotional cards may have different rules depending on how they’re issued.

New York

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Required after 5 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
New York bans expiration and inactivity fees on most gift cards but still treats unused balances as unclaimed property after five years. The state has also issued warnings about deceptive fees, so disclosures matter.

North Carolina

• Expiration rules: Allowed only for certain cards sold by third parties*
• Fees: No post-purchase fees allowed
• Escheatment: Required after 3 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
North Carolina allows expiration for some cards when sold by third-party sellers (like malls), but most consumer gift cards issued by retailers cannot expire.

North Dakota

• Expiration rules: No expiration allowed
• Fees: Activation fees allowed; no inactivity fees afterward*
• Escheatment: Required after 3 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
North Dakota allows activation fees when the card is first sold, but no fees can be added later. Once issued, the card must keep its value unless used.

Ohio

• Expiration rules: No expiration allowed on most cards*
• Fees: No post-purchase fees allowed
• Escheatment: Required after 5 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Ohio allows expiration on certain promotional or loyalty cards if they are free to the consumer. Purchased cards cannot expire.

Oklahoma

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Required after 5 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Oklahoma bans both expiration and fees for purchased gift cards but still requires unspent balances to be reported as unclaimed property after five years.

Oregon

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: Required for balances under $5*
• Minimum balance: None

Other notes:
Oregon is one of several states requiring merchants to provide cash-back when the remaining balance is under $5. Promotional or free cards may be treated differently.

Pennsylvania

• Expiration rules: No expiration allowed
• Fees: No post-purchase fees allowed
• Escheatment: Required after 2 years*
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Pennsylvania’s two-year escheatment window is one of the shortest in the country. Merchants must track unused balances closely.

Rhode Island

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Rhode Island has strict consumer protection rules for gift cards but does not require merchants to turn over unused balances.

South Carolina

• Expiration rules: Allowed only for certain promotional cards*
• Fees: Fees allowed if disclosed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
South Carolina’s main restriction is that purchased gift cards cannot expire. Promotional cards provided for free may have expiration dates as long as they're clearly disclosed.

South Dakota

• Expiration rules: No expiration allowed
• Fees: Fees allowed only if disclosed at purchase
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
South Dakota follows federal rules but adds a simple requirement: any fees must be clearly stated at the time of sale.

Tennessee

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Tennessee bans expiration and inactivity fees on most consumer gift cards. Promotional cards can have different rules, depending on how they’re issued.

Texas

• Expiration rules: Allowed after 5 years if disclosed*
• Fees: Fees allowed if disclosed
• Escheatment: Required after 3 years
• Breakage: Reportable
• Cash-back: Not required
• Minimum balance: None

Other notes:
Texas allows expiration dates as long as they follow federal guidelines and are clearly printed. Escheatment rules are strict and require reporting after three years.

Utah

• Expiration rules: No expiration allowed
• Fees: No post-purchase fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Utah keeps rules simple—no expiration, no fees, and no unclaimed property reporting required.

Vermont

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Required after 3 years
• Breakage: Reportable
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Vermont bans all expiration dates and fees but still requires merchants to report unused balances after three years.

Virginia

• Expiration rules: Allowed if card lasts at least 5 years
• Fees: Inactivity fees allowed after 12 months if disclosed*
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Virginia’s rules follow federal minimums more closely than most states. Inactivity fees can appear after the 12-month mark, which is unusual compared to stricter states.

Washington

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: Required for balances under $5*
• Minimum balance: None

Other notes:
Washington is one of the states requiring merchants to give cash back when the remaining balance falls below $5. Free/promotional cards may have different rules.

West Virginia

• Expiration rules: Allowed after 5 years if disclosed
• Fees: Fees allowed if disclosed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
West Virginia’s rules match federal minimums and do not add many state-level restrictions.

Wisconsin

• Expiration rules: No expiration allowed
• Fees: No fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Wisconsin bans expiration and fees for most consumer gift cards. Loyalty or charity-based cards can be exempt.

Wyoming

• Expiration rules: No expiration allowed
• Fees: No inactivity fees allowed
• Escheatment: Exempt
• Breakage: Merchant keeps breakage
• Cash-back: No requirement
• Minimum balance: None

Other notes:
Wyoming follows a simple no-expiration, no-fee model and does not require unclaimed property reporting for gift card balances.

U.S. Territories

Gift card rules in U.S. territories vary, and some follow federal law without additional local rules. Here is the general picture:

Puerto Rico

• Follows the federal CARD Act
• Expiration allowed only after 5 years
• Inactivity fees allowed after 12 months
• No strict escheatment requirements

Notes: Businesses in Puerto Rico typically rely on federal guidance because local statutes are limited.

Guam

• Follows federal law
• No major territory-specific rules

U.S. Virgin Islands

• Follows federal law
• No additional restrictions

American Samoa

• Also defaults to federal guidance
• Limited territory-specific legislation

Overall note:
Territories rely mostly on federal regulations. Businesses should follow CARD Act minimums unless a territory-specific rule is published, which is rare.

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