Do gift certificates expire in California? In almost every case, no. Under Civil Code section 1749.5, a gift certificate sold in California cannot carry an expiration date, and the balance stays valid until you spend it or exchange it for a new certificate at no cost. The rule applies to certificates sold on or after January 1, 1997, so if a store tells you your card is too old to use, the law is on your side.
The protection is broad by design. “Gift certificate” under state law covers paper certificates, plastic gift cards, and electronic gift cards issued by a retailer or a group of affiliated retailers. A mall card good only at that mall’s stores is covered. A Visa or Mastercard gift card that works almost anywhere is not, and those follow separate federal rules covered below.
The Narrow Exceptions
A small category of gift certificates can legally show an expiration date, but only when the date is printed on the front of the certificate in capital letters and at least 10-point font. The exceptions are:
- Promotional or loyalty cards you received without paying anything for them. If no money changed hands for the card itself, it can expire.
- Gift certificates sold at a volume discount below face value to employers or to nonprofit and charitable organizations for fundraising. These can expire, but no more than 30 days after the date of sale.
- Certificates issued specifically for food products.
If your certificate does not fit one of those categories and someone paid money for it, it cannot expire. Period.
Visa, Mastercard, and Other Bank-Issued Cards
The state rule does not reach general-use prepaid cards from Visa, Mastercard, or American Express. Those cards fall under the federal Credit CARD Act at 15 U.S.C. ยง 1693l-1, which sets a different standard.
Federal law says a bank-issued gift card cannot expire sooner than five years after the date it was activated or last loaded with funds. After five years, the issuer can set an expiration date so long as it is clearly disclosed. Federal rules also allow a dormancy fee after just 12 months of inactivity, provided the fee amount, frequency, and inactivity trigger are clearly stated on the card, and only one such fee can be charged per month.
If you have a bank-issued gift card, using it within the first year is the safest way to avoid fees eating into the balance.
Fees That Can Eat Into Your Balance
California prohibits service fees and dormancy fees on gift certificates. Your balance should not shrink because you left the card in a drawer.
There is one narrow exception for dormancy fees, and every condition has to be met:
- The remaining balance is $5 or less when the fee is charged.
- The fee is no more than $1 per month.
- There has been no activity on the card, including purchases, adding value, or checking the balance, for at least 24 consecutive months.
- The card can be reloaded.
Miss any one of those, and the fee is illegal. Most standard retail gift cards fail at least one condition, so most people will never legitimately owe a dormancy fee.
Cashing Out a Small Balance
California lets you turn small leftover balances back into cash. Starting April 1, 2026, if your gift certificate balance drops below $15, you can walk into the store and ask for the remainder in cash, and the business has to pay. Senate Bill 22, signed in 2025, raised the threshold from $10 to $15.
One catch trips people up: you have to use the card first. You cannot hand over a fresh $25 card and demand $15 back. The cash-out right kicks in once a purchase leaves you with a small remaining amount.
If a Store Refuses to Honor Your Card
Start by asking for a manager. Frontline employees often do not know the rule, and a calm explanation resolves most disputes at the counter.
If that fails, you can file a consumer complaint with the California Attorney General’s office or with the California Department of Consumer Affairs. Small claims court is also a realistic option because you do not need a lawyer, and for a business the cost of showing up in court usually exceeds the value of the card. Keep the card, any receipts, and a written record of what you asked for and what the store said.
If a retailer has closed or filed for bankruptcy, Civil Code section 1749.6 treats the money you paid for the certificate as yours, and a business in bankruptcy is still legally required to honor gift certificates. Enforcing that in practice is harder than the statute suggests. You can file a claim as an unsecured creditor, though unsecured creditors often recover only partial payment or nothing after secured creditors are paid. Filing costs nothing, and holding onto your original receipt strengthens the claim.