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Do gift cards expire in Massachusetts?

Millions of dollars in gift cards go unspent each year. Here's how long you have to use them in Massachusetts.

Gabrielle Tagliaferi, a case manager with Family Promise sorted through a stack of Market Basket gift cards. (Jessica Rinaldi/Globe Staff)

By Annie Jonas

February 26, 2025

3 minutes to read

Gift cards are a popular choice for gifting, offering recipients the flexibility to choose their own presents. But despite their popularity, many people end up leaving their gift cards unused or forgotten.

In fact, millions of dollars in gift card funds go unspent each year. If you live in Massachusetts, you might be wondering – do gift cards expire, and if they do, how long do you have to use them?

Do gift cards expire?

Gift cards come in many forms – physical plastic cards, digital cards, and even merchant credit slips for returns. For many, a gift card can end up as a forgotten item or a small balance left unused.

“Americans have a ton of money in unspent gift cards – about $21 billion. That’s a huge amount of money,” executive director of Women’s Money Matters Danielle Piskadlo said. WMM is a nonprofit serving women and girls over the age of 14 living on low-incomes.

So what can you do with unused gift cards – and do they expire?

Under a federal law called the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), gift cards expire within five years from the date they are activated. Additionally, the law limits certain fees on dormant cards. These protections are in place to ensure that consumers have enough time to redeem the cards they receive as gifts.

However, there are variations depending on the state in which the card was issued. Massachusetts, for example, has its own set of rules that provide even more generous protections to consumers.

When do gift cards expire in Massachusetts?

In Massachusetts, gift card recipients actually get a little more time than the federally mandated five-year expiration date.

Under Massachusetts law, a gift certificate or a merchant credit slip (given for returned merchandise) must be redeemable for at least seven years from the date of issuance.

This is a more consumer-friendly rule than the five-year minimum required at the federal level, Piskadlo said. Having an expiration date is also necessary for retailers who need an expiration date in order to finalize their financial records, Piskadlo said.

“Businesses are holding these gift cards as liabilities on their books, and they have to, at some point, be able to close their books. So there has to be an expiration point where they can collect the money. It’s not counted as revenue on the balance sheet until the gift cards are redeemed,” Piskadlo explained.

The expiration date must be clearly communicated to consumers, either directly on the gift card itself, on a sales receipt, or through a website or toll-free number, according to Massachusetts law. If the expiration date is not disclosed, the gift card will remain valid indefinitely, giving consumers more time to redeem it.

Piskadlo recommends recipients of gift cards use them sooner rather than later for a few reasons:

It’s easy to forget about them: The more time that passes, the less likely someone is going to remember that they have a gift card and are able to use it, she said.
Inflation reduces the value: Because of inflation, the value of that gift certificate is going to be going down over time.
Instability: The store could close down, or you could lose the gift card, Piskadlo warned.

“The faster you can use a gift card, the better,” she said.

Can you return a gift card in Massachusetts?

In general, retailers do not offer cash refunds for gift cards. However, Massachusetts law has some exceptions.

If you use most of the value on a gift card and are left with a small balance ($5 or less), you can request to have that balance refunded in cash. This law also applies if the gift card allows you to add value and the balance drops below $5. Once a gift card’s balance hits zero, it is considered void.

What to do with unused gift cards

If you’re holding onto unused gift cards, you have various options available, including selling or trading them online, donating, or using them for smaller purchases.

Piskadlo said secondary markets like Cardsell, Raise, and CardCash are all platforms to try to sell your gift card, albeit at a slightly less value.

“You may take a little hit, but at least get some juice out of it,” Piskadlo said.

If you don’t want the gift card but think someone else could use it, regifting or donating it are great options. Many charitable organizations will also accept gift cards as donations.

And even if you’re not planning to use a gift card for a major purchase, you can still use it for smaller items to reduce your balance.