What happens when a gift card expires?
There are many different rules and regulations concerning the use of gift cards. Will it expire is the most common question regarding gift cards. Another concern is if there is a service fee. Then that one lingering question—when the card has expired and was not used, who has ownership of the money?
Q: Can a business that has issued a gift certificate for a product or service put an expiration date on it after receiving payment in full?
A: Yes, businesses do have this right.
You should always check out the terms before you buy. Be sure to ask if there is an expiration date or any service fees. The information might be listed on the back of the card.
Q: I live in Pennsylvania and recently discovered my gift card had expired is there anything I can do to recover this “present”?
A: Per Pennsylvania law if the certificate is not used, the business is required to relinquish the purchase money to the state Department of Treasury’s Office of Unclaimed Property within two years of the expiration date. If there is no expiration date, then the business must send the money within five years of purchase.
Q: Why is there a service fee of some gift cards?
A: The service fee is an attempt by some companies to have charges accumulate over time so that the certificate would have little or no value if it is not redeemed. In doing this, they lessen the amount of funds paid to the state as unclaimed property.
Q: What should you do if you’re cleaning out your stash of old Christmas cards and find an expired gift certificate?
A: First, contact the store and ask whether they will honor it. If not, contact the treasury department of your state to determine whether you have money in the unclaimed property office.
The two most common ways to check state treasury departments for the possibility of unclaimed property are to contact each state or do a search on the internet. Every state has its own set of laws and database for the state. Cash Unclaimed Money Search has compiled the largest database, it includes all state and federal databases for one easy comprehensive search. Data to claim your found money is also available.
