What can happen to a gift card if you don t use it for years?

What Can Happen to a Gift Card if You Don’t Use It for Years?

Gift cards are a popular way to give gifts, but what happens if you don’t use them for years? Do they expire? Can you still use them? In this article, we’ll explore the answers to these questions and more.

Federal Law and Gift Card Expiration

In the United States, federal law requires that gift cards have a minimum validity period of three years. This means that gift cards cannot expire for at least three years from the date of purchase. However, some states have laws that require gift cards to be redeemable for cash after a certain period of time.

What Happens to Unspent Gift Cards?

When a gift card is not used for a long period of time, the issuing company or retailer may try to recoup some of the lost revenue. This can happen in a few ways:

• Fees: Some gift cards may charge fees for inactivity, dormancy, or service. These fees can be charged annually, quarterly, or even monthly.
• Expiration: If a gift card is not used within a certain period of time, it may expire and become worthless.
• Return to Issuer: In some cases, the issuing company or retailer may offer to return the unused balance to the cardholder.

Gift Card Expiration Dates

Here are some examples of gift card expiration dates and what happens when they expire:

Can Gift Cards Be Returned?

In some cases, gift cards can be returned to the issuer or retailer. However, this is not always the case. Here are some examples of gift cards that can be returned:

What States Require Gift Card Refund?

Some states have laws that require gift cards to be redeemable for cash after a certain period of time. Here are some examples of states that require gift card refund:

How Much Money is in Unclaimed Gift Cards?

According to a report by the Credit Summit, there is as much as $21 billion of unspent money tied up in unused and lost gift cards. Of those surveyed, a majority of respondents said their unredeemed cards were worth $200 or less.

Conclusion

Gift cards can be a convenient and thoughtful way to give gifts, but it’s important to understand what happens if you don’t use them for years. Federal law requires that gift cards have a minimum validity period of three years, and some states have laws that require gift cards to be redeemable for cash after a certain period of time. Additionally, some gift cards may charge fees for inactivity, dormancy, or service, and others may expire and become worthless. By understanding the terms and conditions of your gift card, you can make informed decisions about how to use it.