Consumer · Gift Cards
Can a Gift Card Expire in Michigan?
Whether a store gift card can expire in Michigan, 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 Michigan
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 |
|---|---|
| Five-year minimum | A retailer may not sell a gift certificate that expires in less than five years, under MCL 445.903g. |
| No balance-reducing fee | No inactivity or service fee may be charged for holding or using a gift certificate, under MCL 445.903f. A separate purchase-time fee at the register is allowed only if it does not reduce the face value. |
| A low-balance card must be accepted | A retailer may not refuse a gift card just because the balance is smaller than the purchase, under MCL 445.903e(1)(g). It must take the card and let you pay the difference. |
| Retail cards never escheat | A retail gift card is carved out of Michigan's unclaimed-property act, so a normal store card is neither escheatable nor expirable before five years. |
| When it is different | What it means |
|---|---|
| Open-loop and payroll cards | A bank-issued general-use prepaid card, a deposit-linked device, and a payroll card are excluded from the definition and follow federal rules. |
| Telecom and FSA cards | A prepaid phone card, and a pretax medical or dependent-care device such as an FSA or HSA card, are excluded. |
| Loyalty and charity cards | Awards or loyalty cards requiring no consideration, and cards sold below face value to employees or charities, are excluded, along with airline credit vouchers. |
What you can do right now
Concrete, neutral steps if a gift-card balance is dishonored in Michigan. This is consumer information, not legal advice.
- Count on at least five years
A Michigan gift certificate cannot expire earlier than five years. Do not accept a shorter printed date.
- Refuse a fee that eats the balance
A fee you pay at the register is allowed, but any fee that reduces the card's face value, such as a dormancy or inactivity fee, is not.
- Insist a store take a low-balance card
Under MCL 445.903e(1)(g), a retailer cannot refuse your card just because the balance is smaller than the purchase. It must accept it and let you pay the difference.
- Complain if a card is dishonored
A violation is an unlawful practice under the Michigan Consumer Protection Act. File a complaint with the Michigan Attorney General, Consumer Protection Team.
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.
→ Michigan Attorney General · Consumer ProtectionThis 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 Michigan gift-card holders get wrong
Michigan split one idea across three sections, and the most useful one for shoppers is the least quoted. Under MCL 445.903g a retailer may not sell a gift certificate that expires in less than five years, and under MCL 445.903f no inactivity or service fee may be charged for holding or using it. But the sleeper rule is MCL 445.903e(1)(g): a Michigan retailer cannot refuse a gift card just because the balance is smaller than the purchase. It must take the card and let you pay the difference, which stops the common trick of turning away a nearly-empty card. Michigan also drew a sharp, quotable fee line: a fee you pay separately at the register is fine, but any fee that eats the card's face value is not. Retail gift cards are carved out of Michigan's unclaimed-property act entirely, so a normal store card is neither escheatable nor expirable before five years. Open-loop bank cards, payroll cards, prepaid phone cards, and pretax medical FSA or HSA cards are all excluded and follow federal rules. Michigan sets no cash-back right, but its partial-redemption rule fills much of that gap. The gift-card sections were added in 2008.
Common questions
My Michigan gift card has 4 dollars on it and the item costs 20 dollars. Can the store refuse it?
No. Under MCL 445.903e(1)(g), a retailer cannot refuse a gift card just because the balance is smaller than the purchase. It must accept it and let you pay the difference.
Can a Michigan retailer charge a fee just to sell me a gift card?
Yes, if the fee is paid separately at the register and does not reduce the card's face value. A fee that eats the balance is not allowed.
Does Michigan's five-year rule cover a Visa gift card?
No. A bank-issued general-use prepaid card usable at multiple unaffiliated retailers is excluded and follows federal rules.
A Michigan store changed the terms after I bought the card. Is that allowed?
No. Altering the terms of a gift certificate after issuance is an independently actionable violation under MCL 445.903e.
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.