We may earn a commission for purchases through links on our site, Learn more.
- Gift cards purchased in New York after December 10, 2022, do not expire for nine years.
- Gift cards purchased between December 25, 2016, and December 9, 2022, have a five-year expiration minimum.
- New York law prohibits many fees, including activation, dormancy, and service fees on gift cards purchased after December 10, 2022.
- If the remaining balance of a gift card is less than $5, you can request cash instead.
- Unused gift card balances may be turned over to the New York State Comptroller’s Office after five years.
- Always read the terms and conditions of any gift card you receive.
- Register your gift card to track its balance and protect it from loss or theft.
- Keep track of the expiration dates, especially for cards purchased before December 10, 2022.
- Use the New York State Comptroller’s Unclaimed Funds portal to check for unclaimed funds from unused gift cards.
- Request cash for low-value gift card balances under $5.
Gift cards are a popular choice for holidays, birthdays, and various celebrations. They’re simple, convenient, and give the recipient the freedom to choose what they want. However, many people wonder: do gift cards expire in NY? Are there rules about expiration dates and fees associated with them?
In this post, we will explore the laws surrounding gift card expiration in New York, the fees that may apply, and what to do if your gift card is unused for a long period of time.
Do Gift Cards Expire in NY?
New York has specific laws to protect consumers when it comes to gift cards. Gift cards were once notorious for having expiration dates that could leave recipients scrambling to use their balance before it became worthless. Fortunately, new laws were passed to ensure that this is no longer the case in New York. Understanding these rules is essential for both consumers and retailers to ensure fairness and transparency.
In this post, we’ll answer the burning question: do gift cards expire in NY? We’ll also walk you through the key changes in state laws, as well as tips for making the most of your gift cards.
The Expiration Rule for Gift Cards in New York
If you’re wondering do gift cards expire in NY, the answer is no—at least not in the way they used to. New York state law protects consumers by placing strict regulations on gift card expiration.
According to the New York State Department of State, gift cards purchased on or after December 10, 2022, cannot expire for a period of nine years. This is a significant improvement from previous rules. Prior to this, gift cards had a five-year minimum expiration date if they were purchased between December 25, 2016, and December 9, 2022.
These new rules mean that if you purchase a gift card in New York after December 10, 2022, you don’t have to worry about rushing to use it within a short timeframe. You now have nine years before the card expires.
What About Fees?
Another major concern for gift card holders is the possibility of fees eating into the balance of the card. Historically, many gift cards had hidden fees, such as activation, service, dormancy, and renewal fees, which could quickly diminish the card’s value over time. Fortunately, New York has made it illegal for many of these fees to be applied to gift cards purchased after December 10, 2022.
The law prohibits:
- Activation fees – The cost of setting up the card.
- Retroactive fees – Fees applied to a card after it has been purchased.
- Redemption fees – Fees charged when the card is used to make a purchase.
- Service fees – Regular charges applied to maintain the card.
- Dormancy fees – Fees applied when a card has been unused for a period of time.
- Renewal fees – Fees for renewing or reactivating a card.
This new legislation ensures that your gift card is not burdened with fees that could reduce its value. So, if you’ve ever been concerned about do gift cards expire in NY and how fees might affect their worth, rest assured that these protections are in place.
What Happens if the Card Balance Is Less Than $5?
If you receive a gift card with a balance of less than $5, you can request to receive cash instead. This is a great consumer protection, as it ensures that even if the remaining balance is small, you can still get value from the card. This provision is especially helpful for cards that may have minimal balances left after purchases or if the recipient doesn’t want to keep track of a small remaining amount.
So, if you’re wondering what happens if your card balance is low, you now have the option of getting cash for that balance rather than letting it sit unused.
What Happens if the Gift Card Is Never Used?
Gift cards are not immune to state laws regarding unclaimed funds. In New York, if a gift card remains unused for five years, the remaining balance may be turned over to the New York State Comptroller’s Office of Unclaimed Funds. This means that if you don’t use your gift card within this time frame, the funds may be transferred to the state.
If you believe you have unclaimed funds from a gift card, you can search the New York State Comptroller’s Unclaimed Funds portal. The process to claim these funds is relatively simple and can help you retrieve any unspent balance from expired or forgotten gift cards.
Additional Tips for Gift Card Holders
While New York law offers strong protections, it’s still important to be aware of the details when it comes to managing gift cards. Here are a few tips to help you make the most of your gift cards:
1. Read the Fine Print
Always read the terms and conditions of any gift card you receive. Look for the expiration date and any potential fees. While New York law eliminates many fees, there might still be specific terms tied to the card that you should be aware of.
2. Register the Card
If the retailer allows, register your gift card. This can help you track its balance, report any lost or stolen cards, and ensure that you can use the card for a longer period.
3. Use the Card Promptly
Even though the law has extended expiration dates, it’s still a good idea to use your gift cards promptly. This reduces the chance of forgetting about them or misplacing them. Plus, it ensures you get the full value of your gift card.
4. Track the Expiration Dates
For cards purchased before December 10, 2022, they may still have a five-year expiration limit. Make sure to keep track of when the card was purchased, so you don’t miss the deadline.
5. Check for Unclaimed Funds
If you suspect you have unclaimed funds from a gift card, or if your gift card has been unused for years, don’t hesitate to check the New York State Comptroller’s Unclaimed Funds portal. You might be entitled to money that’s waiting for you.
6. Don’t Forget About Small Balances
Many people forget about small gift card balances. If you have a card with a low amount, remember that you can request to have the balance refunded as cash if it’s less than $5.
Frequently Asked Questions
Here are some of the related questions people also ask:
Do gift cards have an expiration date in New York?
No, gift cards purchased in New York on or after December 10, 2022, do not expire for nine years.
What is the expiration period for gift cards in New York before 2022?
Gift cards purchased between December 25, 2016, and December 9, 2022, had a minimum expiration period of five years.
Can fees be charged on gift cards in New York?
New York law prohibits many fees on gift cards purchased after December 10, 2022, including activation, dormancy, and service fees.
What happens if my gift card balance is less than $5 in New York?
If your gift card balance is less than $5, you can request to receive cash instead.
What happens to unused gift card balances in New York?
If a gift card is unused for five years, the remaining balance may be turned over to the New York State Comptroller’s Office of Unclaimed Funds.
How can I check if I have unclaimed funds from a gift card in New York?
You can visit the New York State Comptroller’s Unclaimed Funds portal to check if you have unclaimed money from an unused gift card.
Can I still use my gift card if it’s close to expiring in New York?
Yes, as long as the card hasn’t been expired for nine years (for cards purchased after December 10, 2022), you can still use it.
Are there any fees for registering a gift card in New York?
No, registering a gift card is generally free and can help you track the balance and protect it from being lost or stolen.
What is the best way to ensure I don’t lose my gift card balance in New York?
It’s best to use your gift card promptly, keep track of its expiration date, and register it with the retailer for added security.
The Bottom Line
So, do gift cards expire in NY? Under the current law, the answer is no—gift cards purchased after December 10, 2022, cannot expire for nine years. This gives you plenty of time to use your gift card without the worry of it becoming invalid too soon. Furthermore, New York’s protections against fees like activation, dormancy, and redemption fees ensure that your gift card won’t lose its value unexpectedly.
If you have a gift card, it’s important to stay informed about its expiration and any potential fees. Remember to check the terms of use, keep track of expiration dates, and know that you can receive cash for small balances. Lastly, if you don’t use your gift card for five years, the balance could be turned over to the state’s Unclaimed Funds, so make sure to check for any unclaimed balances that might be rightfully yours.
By following these tips and understanding the rules, you can enjoy the full value of your gift cards without the stress of wondering if they will expire or lose value.