x
Breaking News
More () »

Here's why store gift cards can expire after five years

That federal law stems from the Credit Card Act of 2009, which says a gift card cannot expire for at least five years from the date the card was purchased.

CHARLOTTE, N.C. — Do you use your gift cards right away? Tina S from Waxhaw had an issue with a store gift card, saying it expired within six months. People in comments wrote that gift cards should be valid for at least five years.

THE QUESTION:

Are store gift cards supposed to expire only after five years? 

OUR SOURCES:

THE ANSWER: 

Yes, store gift cards can expire only after five years, and you should be able to use them for up to one year, penalty-free. 

WHAT WE FOUND: 

It's easy to forget what gift cards you got for your birthday or a holiday. But if you are sitting on unused gift cards, can you still use them? 

"It’s a federal law that basically states that gift cards can last five years," Bartholomy said. 

For the latest breaking news, weather and traffic alerts, download the WCNC Charlotte mobile app and enable push notifications.

That federal law stems from the Credit Card Act of 2009, which says a gift card cannot expire for at least five years from the date the card was purchased or the last date funds were reloaded. 

"In order to protect consumers and give them more time, there was a lot of shenanigans of gift cards beforehand," Bartholomy said. 

According to the Federal Trade Commission, if the expiration date listed on the card is less than five years in the past, the value can be transferred to a replacement card at no cost. 

You can stream WCNC Charlotte on Roku, Amazon Fire TV and Apple TV, just download the free app.

However, inactivity fees can be charged if the card hasn't been used for at least one year. 

"There can be inactivity fees, but it's got to be spelled out to the purchaser of those gift cards," Bartholomy said.

Contact Meghan Bragg at mbragg@wcnc.com and follow her on FacebookTwitter and Instagram.

VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit VERIFY.

WCNC Charlotte's Verify series is all about trying to make a difference in the Carolinas by making sure the community has the correct information. WCNC Charlotte outlines concisely what we know and what we don't know. Sometimes the answer can be surprising. Watch previous stories where we verify social media claims in the YouTube playlist below and subscribe to get updated when new videos are uploaded.

Before You Leave, Check This Out