Gift cards are among the most popular holiday presents, and January is return season. Federal rules protect the money on most gift cards, but return policies are set by each store. This guide explains the federal gift card rules, how to handle returns, and how to dispute a credit card charge when something goes wrong. General information only, not legal advice. Facts checked November 11, 2026.
Federal gift card rules
Under the Credit CARD Act and the Consumer Financial Protection Bureau's Regulation E (12 CFR 1005.20), store gift cards and general-use prepaid gift cards (such as Visa or Mastercard gift cards) have these protections:
- The money lasts at least five years. The funds cannot expire sooner than five years after the card was issued or after money was last loaded onto it.
- Limits on fees. A dormancy, inactivity or service fee can be charged only if the card has not been used for at least one year, no more than one such fee can be charged in a month, and the fees must be disclosed on the card.
- Clear disclosures. Expiration dates and fees must be stated clearly on the card or its packaging.
Some cards are not covered by these rules, such as loyalty, award or promotional cards (for example, a "free $10 card" when you buy something) and reloadable cards that are not marketed as gift cards. Promotional cards must show their expiration date on the front. State laws can also apply.
Using gift cards safely
- Buy gift cards from stores you trust, check that the package and the PIN area have not been opened or scratched, and keep the receipt.
- Treat a gift card like cash: register it if the issuer allows, and use it soon.
- Remember that only scammers ask you to pay with a gift card. See our holiday shopping scams guide.
Holiday returns: what to know
No federal law requires stores to accept returns. Each store sets its own return policy, so read it before you buy:
- The return window: many stores extend it for holiday purchases, but the dates vary.
- Receipts and gift receipts: without one, a store may give only store credit at the lowest recent price, or refuse the return.
- Exceptions: opened electronics, final-sale items or items with a restocking fee.
- Online orders: who pays return shipping, and how long the refund takes.
Keep receipts, order confirmations and packaging until you are sure you will keep a gift. If a price drops after you buy, see price adjustments and price matching.
When something goes wrong: dispute the charge
If you paid by credit card for something that was not delivered or not delivered as agreed, first contact the seller. If that does not work, you can dispute the charge with your card issuer. The Federal Trade Commission (FTC) explains that your letter should reach the issuer within 60 days after the first bill with the error was sent to you. The issuer must acknowledge your dispute within 30 days and resolve it within 90 days (FTC: Using credit cards and disputing charges).
Frequently asked questions
Can a gift card expire?
Under federal rules, the money on a store or general-use gift card cannot expire sooner than five years after the card was issued or money was last loaded. Promotional and loyalty cards can expire sooner, but the date must be on the front.
Can a gift card charge fees?
Only after one year without use, no more than one fee a month, and only if the fees are disclosed on the card.
Do stores have to accept returns?
No federal law requires it. Each store sets its own return policy, so check the window, the receipt rules and any restocking fees before you buy.
How long do I have to dispute a credit card charge?
The FTC says your letter should reach the card issuer within 60 days after the first bill with the error was sent to you.
What if a store goes out of business before I use my gift card?
Gift cards from a closing or bankrupt store may be hard to use, so it is best to use gift cards soon after you receive them.