No, in almost all cases gift certificates cannot expire in Oregon. State law prohibits selling a gift card or gift certificate that carries an expiration date or that loses value over time, and it bans the inactivity and service fees that would quietly drain a balance. One narrow exception exists for cards sold below face value, and general-purpose prepaid cards from banks follow federal rules instead.
The Core Rule
ORS 646A.276 makes it illegal to sell a gift card with an expiration date or with a face value that declines from the passage of time or non-use.1Oregon State Legislature. Oregon Code 646A.276 – Sale of Gift Card That Expires, Declines in Value, Includes Fee or Does Not Give Option to Redeem A $50 card from a Portland restaurant is worth $50 whether you spend it next week or three years later. The format doesn’t matter. A plastic card, an electronic code, and a paper certificate all get the same treatment as long as they were paid for and are redeemable at a specific business.
Which Cards the Rule Covers
Oregon defines a “gift card” as any prefunded record representing the issuer’s promise to provide goods or services for the amount shown.2Oregon State Legislature. Oregon Code 646A.274 – Definitions for ORS 646A.276 and 646A.278 The word “record” is deliberately broad and covers whatever medium stores the balance.
Some products are carved out of the definition and are not protected by the state law:
- Cards usable at more than one unaffiliated retailer, such as a Visa or Mastercard gift card.
- Prepaid telephone calling cards.
- Prepaid commercial mobile radio service cards.
- Prepaid transportation cards, like transit passes and toll cards.
The line is whether the card is tied to a specific business or group of affiliated businesses. A gift card to a single restaurant chain is covered. A Visa gift card you can spend anywhere is not.
The One Exception That Allows an Expiration Date
ORS 646A.278 permits a seller to put an expiration date on a gift card only when three conditions are all met:3Oregon State Legislature. Oregon Code 646A.278 – Requirements for Sale of Gift Card That Expires
- The card displays the words “EXPIRES ON” or “EXPIRATION DATE” in at least 10-point type, followed by the actual date.
- The buyer paid less than the card’s redeemable value. A $25 card sold for $15, for instance.
- The expiration is no sooner than 30 days after the sale.
All three must be true at once. In practice this covers discounted promotional cards or donated cards resold at a reduced price for fundraising. If you paid full price, the card cannot carry an expiration date.
Fees That Would Erode Your Balance
ORS 646A.276 also bans selling a gift card that includes any fee tied to the card, including inactivity fees, maintenance fees, and service fees.1Oregon State Legislature. Oregon Code 646A.276 – Sale of Gift Card That Expires, Declines in Value, Includes Fee or Does Not Give Option to Redeem If you loaded $100 onto a card and never touched it, the balance still reads $100 when you finally use it. This is stricter than federal law, which allows some fees on general-use prepaid cards.
Cashing Out a Small Remaining Balance
When a card has less than $5 left on it and you’ve already used it for at least one purchase, Oregon law requires the business to give you cash or a check for the remainder. Two situations fall outside this right: cards given away free or sold at a discount as a promotion or donation, and cards redeemed to an online account for buying goods or services.1Oregon State Legislature. Oregon Code 646A.276 – Sale of Gift Card That Expires, Declines in Value, Includes Fee or Does Not Give Option to Redeem A free $10 promotional card with $3 left on it doesn’t have to be cashed out.
Visa, Mastercard, and Other General-Use Prepaid Cards
Because Oregon’s law only reaches cards redeemable at a specific business, general-use prepaid cards from Visa, Mastercard, and American Express run under federal law instead. The federal Electronic Fund Transfer Act, at 15 U.S.C. ยง 1693l-1, sets a nationwide floor.4Office of the Law Revision Counsel. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards
Under federal law, no gift certificate, store gift card, or general-use prepaid card can expire earlier than five years after issuance or the date funds were last loaded, and the expiration terms must be clearly and conspicuously stated on the card.4Office of the Law Revision Counsel. 15 USC 1693l-1 – General-Use Prepaid Cards, Gift Certificates, and Store Gift Cards Dormancy, inactivity, and service fees are allowed only after 12 months of no activity, with the fee terms disclosed on the card, and only one fee per month.5eCFR. 12 CFR 1005.20 – Requirements for Gift Cards and Gift Certificates If someone hands you a Visa or Amex gift card, use it within five years and read the fine print for fees that may start after a year of sitting idle.
Practical Limits on the No-Expiration Rule
The law protects you against the calendar. It can’t protect you against a business closing. If the store or restaurant that issued your card shuts down or files for bankruptcy, the card is likely worthless as a practical matter. Gift card holders are usually treated as unsecured creditors, meaning you would file a claim in the bankruptcy and wait behind secured creditors and priority claims, with recovery rates in retail bankruptcies often negligible. When a business is acquired, the new owner sometimes honors old gift cards as goodwill, but there’s no legal obligation unless the purchase agreement assigned that liability.
There is also an unclaimed property angle. Oregon requires businesses to report and remit abandoned financial assets to the state after a dormancy period, and gift card balances are not exempt. If enough time passes, the issuing business may turn the funds over to the Oregon Department of State Lands. The card stops working at that point, not because it expired, but because the business no longer holds the money. You can still recover the funds by filing an unclaimed property claim with the state, though it takes more effort than swiping the card.
If a Business Won’t Honor Your Card
Start with the manager. Cashiers frequently don’t know Oregon’s rules, and a calm reference to the law often clears things up on the spot.
If that fails, you have two options. You can file a consumer complaint with the Oregon Department of Justice through its online portal, attaching receipts or photos of the card.6Oregon Department of Justice. Online Consumer Complaint Form The DOJ can investigate and take enforcement action.
You can also sue. Oregon’s Unlawful Trade Practices Act, at ORS 646.638, lets a consumer who proves a willful violation recover actual damages or $200 in statutory damages, whichever is greater, plus possible punitive damages, and requires the court to award reasonable attorney fees to a prevailing consumer.7Oregon State Legislature. Oregon Code 646.638 – Civil Action by Private Party, Damages, Attorney Fees For a single card, the statutory floor and the attorney fee provision are what give businesses a real reason to comply.