# United States (federal floor) — Gift card expiration, fee and cash-redemption rules by state

For United States (federal floor), expiration rule is unlawful for any person to sell or issue a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date. (2) Exceptions A gift certificate, store gift card, or general-use prepaid card may contain an expiration date if- (A) the expiration date is not earlier than 5 years after the date on which the gift certificate was issued; dormancy/service fee rule is unlawful for any person to impose a dormancy fee, an inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card. (2) Exceptions A dormancy fee, inactivity charge or fee, or service fee may be charged with respect to a gift certificate, store gift card, or general-use prepaid card, if- (A) there has been no activity with respect to the certificate or card in the 12-month period ending on the date on which the charge or fee is imposed; cash redemption threshold is none; covered instruments is The prohibition under paragraph (1) shall not apply to any gift certificate- (A) that is distributed pursuant to an award, loyalty, or promotional program; statute citation is 15 U.S.C. § 1693l-1, recorded from its source on 2026-08-18.

- **State:** United States (federal floor)
- **Expiration rule:** unlawful for any person to sell or issue a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date. (2) Exceptions A gift certificate, store gift card, or general-use prepaid card may contain an expiration date if- (A) the expiration date is not earlier than 5 years after the date on which the gift certificate was issued _(verified: appears in the quote below)_
- **Dormancy/service fee rule:** unlawful for any person to impose a dormancy fee, an inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card. (2) Exceptions A dormancy fee, inactivity charge or fee, or service fee may be charged with respect to a gift certificate, store gift card, or general-use prepaid card, if- (A) there has been no activity with respect to the certificate or card in the 12-month period ending on the date on which the charge or fee is imposed _(verified: appears in the quote below)_
- **Cash redemption threshold:** none
- **Covered instruments:** The prohibition under paragraph (1) shall not apply to any gift certificate- (A) that is distributed pursuant to an award, loyalty, or promotional program _(verified: appears in the quote below)_
- **Statute citation:** 15 U.S.C. § 1693l-1 _(our reading, not quoted from the source)_

## What the source says

> (1) In general Except as provided under paragraphs (2) through (4), it shall be unlawful for any person to impose a dormancy fee, an inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card. (2) Exceptions A dormancy fee, inactivity charge or fee, or service fee may be charged with respect to a gift certificate, store gift card, or general-use prepaid card, if- (A) there has been no activity with respect to the certificate or card in the 12-month period ending on the date on which the charge or fee is imposed; (B) the disclosure requirements of paragraph (3) have been met; (C) not more than one fee may be charged in any given month; and (D) any additional requirements that the Bureau may establish through rulemaking under subsection (d) have been met. (3) Disclosure requirements The disclosure requirements of this paragraph are met if- (A) the gift certificate, store gift card, or general-use prepaid card clearly and conspicuously states- (i) that a dormancy fee, inactivity charge or fee, or service fee may be charged; (ii) the amount of such fee or charge; (iii) how often such fee or charge may be assessed; and (iv) that such fee or charge may be assessed for inactivity; and (B) the issuer or vendor of such certificate or card informs the purchaser of such charge or fee before such certificate or card is purchased, regardless of whether the certificate or card is purchased in person, over the Internet, or by telephone. (4) Exclusion The prohibition under paragraph (1) shall not apply to any gift certificate- (A) that is distributed pursuant to an award, loyalty, or promotional program, as defined by the Bureau; and (B) with respect to which, there is no money or other value exchanged. (c) Prohibition on sale of gift cards with expiration dates (1) In general Except as provided under paragraph (2), it shall be unlawful for any person to sell or issue a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date. (2) Exceptions A gift certificate, store gift card, or general-use prepaid card may contain an expiration date if- (A) the expiration date is not earlier than 5 years after the date on which the gift certificate was issued, or the date on which card funds were last loaded to a store gift card or general-use prepaid card; and (B) the terms of expiration are clearly and conspicuously stated.

## Source

- https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1693l-1&num=0&edition=prelim

Last verified: 2026-08-18. Review by: 2027-08-18.
Part of [Gift card expiration, fee and cash-redemption rules by state](https://referencesource.org/gift-card-consumer-protections-by-state/).