Consumer · Gift Cards
Can a Gift Card Expire in Massachusetts?
Whether a store gift card can expire in Massachusetts, 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 Massachusetts
What the law requires, when it does not apply, and how the state sits against the federal floor.
| The rule in this state | What it means |
|---|---|
| Seven-year minimum | A gift certificate must be valid at least seven years after issuance, under G.L. c. 200A, § 5D, the longest state minimum in the country. If no date is properly disclosed, it is redeemable in perpetuity. |
| Cash out at 90 percent used or under 5 dollars | A non-reloadable certificate redeemed for at least 90 percent of face value, or a reloadable one with 5 dollars or less left, gives the holder an election to take the balance in cash. |
| Short-dating a certificate is a crime | Selling a certificate with a redemption limit under seven years, or refusing to redeem an unexpired one, is punishable by a fine, under G.L. c. 266, § 75C. |
| The state never claims a lawful balance | Once an expiration is lawfully reached the issuer keeps the balance rather than reporting it, and an undated certificate never becomes abandoned at all. |
| When it is different | What it means |
|---|---|
| Fees follow federal law | Section 5D says nothing about dormancy or service fees, so federal rules govern: no fee before twelve months of inactivity, and then one fee per month with disclosure. |
| Open-loop bank cards | A card usable with multiple unaffiliated sellers, or issued by a national bank, is outside the state rule and gets five years and federal fee rules. |
| Prepaid calling arrangements | A prepaid calling arrangement is excluded from the gift-certificate definition. |
What you can do right now
Concrete, neutral steps if a gift-card balance is dishonored in Massachusetts. This is consumer information, not legal advice.
- Count on at least seven years
A Massachusetts gift certificate must be valid at least seven years, and one with no properly disclosed date is redeemable forever.
- Ask for cash when nearly used or low
If you have used at least 90 percent of a non-reloadable card, or a reloadable card has 5 dollars or less left, you can elect to take the balance in cash.
- Know a short date is a criminal offense
Selling a certificate that expires in under seven years, or refusing to redeem an unexpired one, is punishable by a fine under c. 266, § 75C.
- Complain and consider a 93A demand
A violation is fodder for a Chapter 93A claim with multiple damages and attorney fees. File a complaint with the Massachusetts Attorney General.
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.
→ Massachusetts 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 Massachusetts gift-card holders get wrong
Massachusetts has the longest state minimum in the United States, seven years, two years more than the federal floor, and if no expiration date is properly disclosed the certificate is redeemable in perpetuity. Under G.L. c. 200A, § 5D, a gift certificate must stay valid at least seven years from issuance. It is also the only state that pairs a 90-percent-redeemed cash-out election with a separate 5-dollar-or-less election for reloadable cards, so a nearly-used or low-balance card can be cashed out rather than trapped. Massachusetts is one of the only states where selling a short-dated gift certificate is a criminal offense, punishable by a fine under c. 266, § 75C, and where a merchant who refuses to redeem an unexpired certificate commits the same offense. One trap worth flagging: many sources, including the state consumer guide, attribute the seven-year rule to c. 93, § 14S, but that section governs merchant credit slips for returned goods. The gift-certificate rule lives in c. 200A, § 5D. Section 5D is silent on dormancy and service fees, so federal rules govern those. Open-loop and national-bank cards are outside the state rule and get five years and federal fee rules.
Common questions
I have spent 90 percent of my Massachusetts gift card. Can I demand the rest in cash?
Yes. Under § 5D, a non-reloadable certificate redeemed for at least 90 percent of face value gives you an election to take the remaining balance in cash.
My Massachusetts gift card has no expiration date printed. How long is it good for?
Forever. Under § 5D, a gift certificate with no properly disclosed expiration date is redeemable in perpetuity.
Can a Massachusetts store charge a monthly inactivity fee?
Only under federal rules, because § 5D is silent on fees. That means no fee before twelve months of inactivity, and then one fee per month with disclosure.
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.