Use Those Gift Cards!

Gift cards are popular gifts, but many recipients don't end up using them, resulting in about $3 billion, with an average value of $116 per person, going unused. Although some might believe gift cards have no expiration, the 2009 federal Credit Card Accountability Responsibility and Disclosure (CARD) Act allows them to expire after five years, although some states offer even longer expiration periods.

Unfortunately, some businesses attempt to exploit gift card holders by making it difficult for them to use the cards before their legal expiration date, leading to frustration and wasted money for consumers. However, consumers do have certain rights when it comes to gift cards. The law prohibits gift cards from expiring before five years from the purchase date, and if the card's expiration date is earlier, the remaining balance can be transferred to a replacement card at no cost.

There are some fees associated with gift cards, such as inactivity fees if the card remains unused for a year. Additionally, there might be fees for purchasing the card or replacing a lost or stolen one. To protect consumers, gift cards must clearly disclose their expiration date and any associated fees.