Consumer · Gift Cards
Can a Gift Card Expire in California?
Whether a store gift card can expire in California, plus the cash-back rule, the fee limits, the exceptions for bank and promotional cards, and how the state compares to the federal five-year floor. Cited to the statute.
The rules and exceptions in California
What the law requires, when it does not apply, and how the state sits against the federal floor.
SB 22 raised the cash-back floor from $10 to $15, effective April 1, 2026. Older cards and sources cite $10; the current figure is $15. Confirm the operative post-April-2026 section before relying on it.
| The rule in this state | What it means |
|---|---|
| No expiration date | A gift certificate or gift card sold by a retail seller may not carry an expiration date, under Civil Code §1749.5(a)(1). |
| No service or dormancy fee | A gift card may not carry a service fee, including a dormancy or nonuse fee, apart from the narrow carve-out below. |
| Cash back under $15 | A gift certificate with a remaining cash value under $15 is redeemable in cash for its value on request. This floor rose from $10 to $15, effective April 1, 2026. |
| Covers store cards and certificates | The rule applies to closed-loop cards sold for value by a retail seller. General-use bank cards are treated separately. |
| When it is different | What it means |
|---|---|
| Narrow dormancy fee | A dormancy fee is allowed only if the remaining value is $5 or less, the fee is $1 per month or less, and there has been no activity for 24 consecutive months, far stricter than the federal 12-month rule. |
| Promotional or loyalty cards | Cards given away without payment, or as part of an awards or loyalty program, are generally exempt from the no-expiration rule. |
| Open-loop bank cards | General-use bank-issued prepaid cards follow the federal floor and their own terms, not the §1749.5 no-expiration rule. |
What you can do right now
Concrete, neutral steps if a gift-card balance is dishonored in California. This is consumer information, not legal advice.
- Keep using the card; it does not expire
A California retail gift card has no valid expiration date. If a merchant refuses an unexpired-looking balance, the no-expiration rule is on your side.
- Ask for cash if the balance is under $15
When the remaining value drops below $15, you can ask the retailer to pay it out in cash rather than forcing you to spend it. Keep the card and any receipt.
- Watch for improper fees
Service and dormancy fees are barred except in a very narrow case ($5 or less balance, $1 per month, after 24 months of no use). A fee outside that is not allowed.
- Complain if a card is dishonored
If a retailer voids a balance or charges an improper fee, you can file a complaint with the California Attorney General’s office, which enforces the gift-card rules.
If a retailer voids a balance or charges an improper fee, a state consumer-protection office can take your complaint and enforce the gift-card rules.
→ California Attorney General — Consumer ComplaintsThis is general consumer information, not legal advice. Card terms and exceptions vary, so check your card and the statute, and use the complaint route if a balance is wrongly dishonored.
What California gift-card holders get wrong
California has the strongest gift-card law in the country, and the practical takeaway is simple: a retail gift card here does not expire, full stop. Civil Code §1749.5 bars an expiration date on a gift certificate or card sold for value, and it bars service and dormancy fees except in one narrow situation. The feature people forget is the cash-back right: once your balance drops below a set floor you can demand the remainder in cash instead of being forced to spend it in the store. That floor just moved. SB 22 raised it from $10 to $15 effective April 1, 2026, so a balance under $15 is now cashable, and older summaries that still say $10 are out of date. Promotional and loyalty cards you did not pay for, and general-use bank cards, follow different rules. If a merchant tries to expire a balance or slap on a fee, the law is almost always on your side.
Common questions
Do gift cards expire in California?
No. A retail gift card or gift certificate sold for value cannot carry an expiration date under Civil Code §1749.5. The balance stays good indefinitely. Promotional cards you did not pay for and general-use bank cards are treated differently.
Can I get cash back from a gift card in California?
Yes, once the balance is low. A gift certificate with a remaining value under $15 is redeemable in cash on request. That floor rose from $10 to $15 effective April 1, 2026.
Can a store charge a dormancy fee on a California gift card?
Almost never. Service and dormancy fees are barred except in one narrow case: the balance is $5 or less, the fee is no more than $1 per month, and there has been no activity for 24 months. Any fee outside that is not allowed.
Is the California cash-back limit $10 or $15?
It is $15 as of April 1, 2026. SB 22 raised the cash-back floor from the older $10 figure. If you see $10 quoted, it is a pre-2026 figure that no longer reflects current law.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.