Your Gift Card Rights Under U.S. Federal Law

The CARD Act of 2009

The Credit Card Accountability Responsibility and Disclosure Act of 2009 ("CARD Act") added a federal layer of protection specifically for U.S. consumer gift cards. The Federal Reserve and Consumer Financial Protection Bureau (CFPB) implement and enforce these rules through Regulation E.

The act covers most cards a typical U.S. consumer would consider a gift card — closed-loop store cards and most general-purpose prepaid cards marketed as gifts, including the GiftCardMall MyGift family of prepaid Visa, Mastercard, Amex, and Discover cards.

Expiration date rules

• Funds on a covered gift card may not expire for at least five years from the date of purchase or the most recent date money was loaded onto the card, whichever is later.
• The plastic card itself may carry a printed expiration date sooner than that. If it does, the issuer must replace the card at no cost to you, with the unused balance transferred to the new card.

Dormancy and inactivity fees

• A dormancy or inactivity fee can only be charged after 12 consecutive months of inactivity.
• Only one such fee per month is allowed on a card.
• The fee terms must have been clearly disclosed before purchase.

If a card sat in a drawer for two months, no inactivity fee can lawfully apply. If it sat for thirteen months, fees may begin from month 13 onward, subject to the disclosed schedule.

Disclosure requirements

The CARD Act requires fee terms and material restrictions to be disclosed in a clear and conspicuous way before purchase — on the card itself, on its packaging, or both. If you cannot find a printed disclosure, that is itself information: take a photo of the packaging at purchase and keep your receipt.

State laws layered on top

Several states — including California, Connecticut, Massachusetts, and Maine, among others — impose stricter standards than the federal floor. Common state-level enhancements include:

• Longer or no-expiration rules for closed-loop cards.
• Additional cash-back rights for low-balance cards (often when the balance falls below $5 or $10).
• Restrictions on how transactions are reported to escheat (unclaimed-property) programs.

If you live in or bought a card in one of these states, the stricter rule generally applies.

Lost or stolen cards

Federal law does not require gift card issuers to replace lost or stolen closed-loop cards, although many do as a courtesy. Open-loop network cards (Visa / Mastercard / Amex / Discover prepaid) often have stronger replacement programs because they are subject to additional Regulation E protections.

Practical steps

• Contact the issuer using the number printed on packaging or your receipt as soon as you realize the card is missing.
• Provide the long card number if you have a photo or saved record. Without it, replacement is much harder.
• Keep all proof of purchase: receipts, packaging, and any registration emails.
• If the card was used fraudulently, file a dispute and consider reporting to local police; some issuers require a police report number.

Filing a dispute

1. Start with the issuer's customer service. Note the rep's name, the date and time, and any case number.
2. Put your complaint in writing if possible — email or the issuer's online support form.
3. If the issuer is unresponsive, you can escalate to the CFPB at consumerfinance.gov, your state attorney general's consumer protection unit, or the FTC at reportfraud.ftc.gov.