Consumer rights · Your right

Gift cards in New York: expiration dates, fees and cashing out a small balance

Updated October 30, 2026By The editorial teamNot reviewed by an attorney — based on the official sources below

In short

New York's gift card law (General Business Law § 396-i) protects most gift cards and gift certificates, paper or electronic. The money on a card can't expire sooner than nine years after the card was issued or last loaded, whichever is later, and any expiration must be clearly stated on the card. Stores can't charge dormancy, service or other fees, and a card's value can't shrink over time; the only fee allowed is a one-time activation fee of up to $9 on general-purpose cards usable at many stores. A store-specific card with less than $5 left can be redeemed for cash on request. A business also can't change a card's terms after issuing it.

Read on for the details, the exceptions and the sources.

In plain words

Gift certificate: The law's name for gift cards, e-gift cards and paper certificates bought in advance for a set amount and honored when presented.
Open loop card: A gift card usable at many unrelated stores, such as a network-branded card. A closed loop card works only at one store or brand.
Promotional gift certificate: A card given away for free, for example as a bonus, that says on its front that it is promotional and when the funds expire.
Dormancy fee: A charge for not using a card for a while. New York bans it.

What is it?

General Business Law § 396-i regulates gift certificates: certificates, electronic cards or other prepaid records issued for a specified amount, usable at one merchant or group of affiliated merchants, or at many unaffiliated merchants, and honored on presentation (§ 396-i(1)(a)(1)). It sets rules on expiration, fees, disclosure of terms and redemption, and also protects store credits in several ways.

Who qualifies?

Anyone holding a gift card or gift certificate covered by § 396-i, whether you bought it or received it as a gift.

Store and brand gift cards, paper certificates and e-gift cards.
Open loop cards usable at many merchants.
Store credits, for the rules on accepting them and not changing their terms (§ 396-i(1-a), (2)).

Exceptions

Promotional gift certificates given for free can have an expiration date, if it is printed on the front with a statement that the card is promotional (§ 396-i(1)(a)(3), (5-a)).
Not covered: cards linked to a bank deposit account, transit fare cards, prepaid phone cards, payroll cards, flexible spending and health savings accounts, and prepaid discount cards whose expiration date is clearly disclosed (§ 396-i(1)(b)).
Open loop cards may carry one initial activation or issuance fee, reasonably related to the issuer's cost and no more than $9 (§ 396-i(5)(a)).
The cash-out right for balances under $5 doesn't apply to open loop or promotional cards (§ 396-i(5-b)).

How much?

The full value loaded on the card. No activation, redemption, service, dormancy, inactivity, administrative, handling, renewal, reload or any other fee may be charged — except the one-time activation fee of up to $9 on open loop cards (§ 396-i(5)(a)). A card's value or balance may not decline because of the passage of time or non-use (§ 396-i(5)(b)). If a store or brand card has less than $5 left, you can ask to redeem it for its cash value (§ 396-i(5-b)).

How is it calculated?

Your balance is what was loaded minus what you spent — nothing else. If you see a balance that dropped while you weren't using the card, that is a sign of a fee or value decline the law prohibits (§ 396-i(5)). For expiration, take the later of the issue date and the last date money was added, and add nine years (§ 396-i(5-a)).

What documents do you need?

The card itself, or the e-mail or app record for an e-gift card.
The purchase receipt, if you have it.
The card's terms and conditions — they must be on the card, its packaging or an accompanying document, with a toll-free number for the full terms (§ 396-i(3)).
A record of the balance history, if the issuer provides one.

How do you get it?

Check the balance and the terms
Look at the expiration date and any fees listed. Compare them with the rules above.
Use it or ask for cash under $5
Present the card for payment. For a store card with less than $5 left, ask the cashier or customer service to redeem it for cash (§ 396-i(5-b)).
Challenge improper fees or expiration in writing
Write to the store or issuer, cite § 396-i, and ask it to restore the balance or honor the card.

What if they refuse?

A business that issues gift cards or store credits can't refuse to accept unexpired ones for personal purchases, including on sale items and during closing-out or going-out-of-business sales (§ 396-i(1-a)), and can't change a card's terms after issuing it (§ 396-i(2)). The Attorney General enforces the law and can obtain an injunction, restitution and a civil penalty of up to $1,000 per violation (§ 396-i(4)), so a complaint to that office is the natural next step.

Deadlines

Earliest possible expiration: nine years after the card was issued or last loaded, whichever is later (§ 396-i(5-a)).
Store credits and gift certificates with a stated time limit must be presented before it runs out to be accepted (§ 396-i(1-a)).

Gift card scams

Sellers of gift cards must display a notice warning about prepaid card scams and explaining what to do if you suspect one (§ 396-i(2-b)). If you were tricked into buying cards for someone, contact the card issuer at once with the card numbers and receipts, and report it.

Figures that change

Earliest gift card expiration: 9 years after issue or last load, whichever is later (as of 2026-10-30; N.Y. General Business Law)
Maximum one-time activation fee (open loop cards only): $9 (as of 2026-10-30; N.Y. General Business Law)
Balance that can be cashed out (store cards): Less than $5 (as of 2026-10-30; N.Y. General Business Law)

Frequently asked questions

Do gift cards expire in New York?

Most can't expire sooner than nine years after the card was issued or last loaded, whichever is later, and any expiration must be clearly stated on the card (§ 396-i(5-a)). Free promotional cards are an exception.

Can a store charge a fee if I don't use my gift card?

No. Dormancy, inactivity, service and similar fees are banned, and a card's value can't decline over time (§ 396-i(5)). Only open loop cards may have a one-time activation fee of up to $9.

Can I get cash for a small balance?

Yes, for store or brand cards with less than $5 left: they can be redeemed for cash on request (§ 396-i(5-b)). This doesn't apply to open loop or promotional cards.

The store is going out of business. Will it take my gift card?

A business conducting a closing-out or defunct-business sale may not refuse unexpired gift certificates or store credits for personal purchases (§ 396-i(1-a)).

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Official sources

This page was written from the sources below. “Checked” is the date the source was last opened and read.

N.Y. General Business Law (opens in a new tab)
New York State Senate — Open Legislation (official text of the Consolidated Laws) · § 396-i(1)–(6) · Checked: October 30, 2026
Definitions, acceptance, terms, fees, expiration, cash-out under $5, scam notice, Attorney General enforcement
File a complaint: Consumer issues — NY Attorney General (opens in a new tab)
Office of the New York State Attorney General · Checked: October 30, 2026
Complaints about gift cards
Identity theft — USAGov (opens in a new tab)
USAGov (U.S. General Services Administration) · Checked: October 30, 2026
Where to report scams