Frequently Asked Questions

Under the Credit CARD Act of 2009, the funds on a gift card cannot expire for at least 5 years from the date of purchase or the date the card was last loaded with money. However, the physical card (the plastic) may have an expiration date sooner than 5 years. In that case, the issuer must replace the plastic card with a new one carrying the remaining balance, at no charge to you.

Federal law limits when and how much fees can be charged:

• Inactivity (dormancy) fees: Can only be charged after 12 consecutive months of no activity on the card. Only one fee per month is permitted.
• Purchase fees: Not restricted by federal law. Common on open-loop (Visa/Mastercard) cards, typically $3–$6 at time of purchase.
• Other service fees: Subject to the same restrictions as inactivity fees — one per month, only after 12 months inactive.

All applicable fees must be clearly disclosed on the card, packaging, or cardholder agreement before purchase.

Yes. The Credit CARD Act protections apply to gift cards sold to consumers for personal use, including both closed-loop store cards and open-loop network cards. There are some exemptions for loyalty cards, reward cards, and promotional cards issued free of charge — these may not carry the same protections. Check the card's terms for specifics.

The card itself may expire (the physical plastic), but your funds are protected for 5 years. Contact the card issuer using the phone number on the back of the card and request a replacement card before the expiration date. The issuer is required by federal law to provide this at no charge if the funds are still within the 5-year protection window.

The safest ways to check your balance are:

1. Visit the official website of the card's issuer — the URL is printed on the back of the card or packaging.
2. Call the customer service number printed on the back of the card.
3. Ask a cashier at any store location (for store-specific cards) to scan the card.

We strongly advise against using any third-party balance-check website. See our balance-check guide for warnings about scam sites. We do not provide a balance-check tool on this site.

Yes — this is called a "split tender" transaction. Most major retailers support it: you tell the cashier the amount you want to apply from the gift card, pay that amount with the card, and pay the remaining balance with cash, debit, or credit. Some smaller merchants or online checkouts may not support split tender, so it's best to know your balance before you shop.

It depends on the subscription service and card type. Open-loop (Visa/Mastercard) gift cards can generally be used for recurring subscriptions if the full charge can be authorized. However, once the card balance is depleted, the recurring charge will fail. Store-specific gift cards typically cannot be used for subscriptions unless that store offers such a service (for example, some app store cards can fund a subscription with that platform). Check with the subscription provider for their gift card policy.

If the card was registered (you provided your information on the issuer's website), you can typically report it lost or stolen and receive a replacement card with the remaining balance. Contact the issuer immediately using the phone number on the back of the card or on the original packaging.

If the card was not registered, it is treated like cash. The issuer may not be able to replace it without the card number and proof of purchase (receipt). Always keep your purchase receipt and consider registering cards as soon as you receive them.

Contact the card issuer's customer service. If you have the card number (which may be embossed or printed on the card even if it won't scan), proof of purchase, and any personal information used during registration, the issuer can often issue a replacement card. Bring the damaged card and your receipt to a store location or call the number on the back of the original packaging.

This may be a case of card tampering (a thief recorded the card data before you purchased it and drained it after activation). Steps to take:

1. Return to the store where you bought the card, with your receipt.
2. Report the situation to store management — most major retailers have policies for addressing card fraud at their stores.
3. Contact the card issuer's customer service and report the fraud.
4. File a report with the FTC at ReportFraud.ftc.gov.

Major retailers are increasingly implementing security measures to combat card tampering. Many stores now keep high-value gift cards behind the counter or in locked displays.

The Credit CARD Act of 2009 (officially the Credit Card Accountability Responsibility and Disclosure Act) includes specific provisions governing gift cards, implemented through regulations by the Consumer Financial Protection Bureau (CFPB). These provisions:

• Protect your balance from expiring for at least 5 years from purchase or last reload.
• Restrict inactivity fees to cards that have been inactive for 12+ months.
• Limit fees to one per month.
• Require all fees to be clearly disclosed before purchase.

Yes, many states have enacted their own gift card laws that provide additional protections — some stronger than the federal baseline. For example, some states prohibit inactivity fees entirely, extend the no-expiration period beyond 5 years, or require issuers to refund low remaining balances in cash. State laws vary significantly. You can find information about your state's specific rules through your state's consumer protection agency or attorney general's office.

Federal law does not require issuers to redeem gift cards for cash. However, several states (including California, Colorado, Maine, Massachusetts, Montana, New Jersey, Oregon, Vermont, and Washington) require merchants to provide a cash refund for gift card balances below a certain threshold (typically $5 or $10). Check your state's laws for specifics.

For individuals receiving gift cards as personal gifts from family or friends: generally, personal gifts are not taxable income for the recipient in the US.

For employees receiving gift cards from an employer: the IRS considers gift cards to employees as taxable wages, even in small amounts, because they have a readily ascertainable cash value. Employers are required to include the value in the employee's W-2 and withhold appropriate taxes.

For businesses giving gift cards to customers as promotions or rewards: the tax treatment depends on the circumstances. Consult a tax professional for guidance on your specific situation.

This is general information only, not tax advice. Consult a qualified tax professional for questions about your specific situation.

Yes. Many businesses use gift cards as employee rewards, recognition gifts, or performance incentives. However, as noted above, the IRS treats gift cards given to employees as taxable wages. Businesses should ensure proper reporting and withholding. Open-loop (Visa/Mastercard) gift cards and store gift cards are both commonly used for this purpose.

No. This is always a scam. The IRS does not call taxpayers demanding immediate payment via gift cards. The IRS initiates contact by mail, never by phone. Hang up immediately. If you have genuine concerns about your taxes, visit IRS.gov or call the IRS directly at 1-800-829-1040.

Recovery is difficult but sometimes possible if you act quickly. Contact the card issuer immediately (the number on the back of the card or packaging) and report fraud. Some issuers may be able to freeze a card before the balance is fully redeemed if contacted within minutes to hours. Report to the FTC at ReportFraud.ftc.gov and to local law enforcement. See our full scam prevention guide for details.