Gift Card Fees and Expiration: The Rules
US rules say a gift card's funds last at least five years and inactivity fees can start only after a year without use; Visa gift cards add a purchase fee.
By Olivia HarperContributing writer. Policy checked .
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Rules change, and this is not legal advice. This is our own summary of the federal gift card rule (Regulation E, section 1005.20), a Consumer Financial Protection Bureau (CFPB) note, Apple's gift card terms and a Visa gift card seller's notes, read on October 26, 2026.
Two kinds of gift cards
- Store gift cards carry one merchant's brand (or a group of merchants) and work only there.
- Network gift cards carry a Visa, Mastercard, American Express or Discover logo and work wherever that network's debit cards are taken.
The federal rule covers both kinds when they are sold as gift cards. The CFPB warns that a general prepaid card that is not sold as a gift card falls outside these rules, so it can charge fees such as monthly service fees from the start.
Do gift cards expire?
Under federal law, a gift card can carry an expiration date, but the money on it must stay usable for at least five years from the day the card was issued or the day money was last loaded, whichever is later. A seller also has to give buyers a reasonable chance to buy a card with at least five years left before the date printed on it.
If the plastic expires before the money does, the CFPB says the issuer must send a new card at no cost. States may add their own protections.
Which fees are allowed
| Fee | What the rule says |
|---|---|
| Inactivity, dormancy or service fee | Only after a full year with no activity on the card |
| How often | No more than one such fee in any calendar month |
| Disclosure | The amount, how often and that it is for inactivity must be stated clearly on the card |
Visa gift cards: where to buy and what they cost
Giftcards.com, a Visa and Mastercard gift card seller, says Visa gift cards are sold online, as digital eGifts and on gift card racks at grocery stores, pharmacies and big-box chains such as Walgreens, CVS, Walmart and Target. It says every seller charges a one-time purchase fee that varies with the card's value, that there are no monthly fees or interest on the balance, and that some cards charge an inactivity fee after 12 months without use. Read the card's terms before you buy.
Can you buy a gift card with a gift card?
Usually not at the brand's own store. Apple's terms, for example, say its gift cards cannot be used to buy gift cards, cannot be resold, and cannot be turned into cash except where the law requires. Our guides to Amazon gift cards and Best Buy gift cards cover the same limits at those stores.
How to protect your balance
- Keep the receipt and the terms that came with the card.
- Write down the card number and the customer service number, and keep them apart from the card.
- Treat it like cash: some issuers replace a lost card only if it was registered.
- Spend it sooner rather than later. If a store closes or goes out of business, a store card can become hard or impossible to use.
- Keep the card until you are sure you will not return anything; some stores refund to the card.
Sources
12 CFR 1005.20, Electronic Code of Federal Regulations; Giving or receiving gift cards?, CFPB (archived page); Where to buy Visa gift cards, Giftcards.com; Gift card terms, Apple. Checked October 26, 2026.