California gift certificates do not expire under state law

In California, gift certificates cannot expire. State law treats an unexpired gift certificate as equivalent to cash, which means a business cannot set an end date on when you can use it. This protection applies to nearly all gift certificates sold in California, regardless of the retailer or the amount.

The law does allow one exception: a business can charge a dormancy fee (a small monthly charge) if the certificate has not been used for more than two years and the business clearly disclosed the fee before you bought it. However, the fee cannot exceed $2.50 per month, and the business must give you written notice before charging it. In practice, most California retailers do not charge dormancy fees because the disclosure requirement and fee cap make them impractical.

Key Takeaways

  • California law prohibits expiration dates on gift certificates, so you can use yours at any time in the future.
  • A business can charge a dormancy fee only if you have not used the certificate for more than two years and the fee was clearly disclosed before purchase.
  • Dormancy fees are capped at $2.50 per month under California law.
  • If a business refuses to honor an expired certificate or charges you a fee you were not told about, you can file a complaint with the California Attorney General.
  • Gift cards issued by banks or financial institutions follow different federal rules and may have expiration dates.

What California law says about gift certificate expiration

California Civil Code Section 1749.5 is the statute that protects gift certificate holders. It states that a gift certificate cannot expire, and any expiration date printed on the certificate is void and unenforceable. This means if you have a gift certificate with an expiration date written on it, that date has no legal weight—you can still use the certificate after that date passes.

The law applies to gift certificates issued by retailers, restaurants, salons, entertainment venues, and most other businesses operating in California. It does not matter whether the certificate was purchased in California or issued by a California business; if you are using it in California, the law protects you.

The dormancy fee exception and how it works

The only situation where a business can charge you a fee related to an unused gift certificate is if the certificate has sat unused for more than two years. In that case, California law permits a dormancy fee—but only if three conditions are met. First, the business must have clearly disclosed the fee in writing before you bought the certificate. Second, the fee cannot exceed $2.50 per month. Third, the business must send you written notice before charging the fee.

In practice, dormancy fees are rare because retailers find the disclosure and notice requirements burdensome. Most businesses choose not to charge them. If a business does charge a dormancy fee without meeting all three conditions, the charge is illegal, and you can dispute it.

The difference between gift certificates and gift cards

California law treats gift certificates (physical or digital certificates issued by a specific retailer) differently from gift cards issued by banks or financial institutions. A gift card issued by a bank—such as a Visa or Mastercard gift card—is not covered by California's gift certificate law. Instead, it falls under federal law, which does allow expiration dates. Bank-issued gift cards typically expire after three to five years.

If you are unsure whether you have a retailer gift certificate or a bank gift card, check the certificate itself. A retailer gift certificate will name a specific store or restaurant. A bank gift card will display a Visa, Mastercard, American Express, or Discover logo and will function like a credit card at any merchant that accepts that brand.

What to do if a business refuses to honor your certificate

If a retailer tells you that your gift certificate has expired and refuses to honor it, you have the right to push back. Explain that California law does not allow expiration dates on gift certificates. Ask to speak with a manager if the first employee is not familiar with the rule. Many businesses straightforward do not train their staff on this law, and a polite conversation with management often resolves the issue.

If the business continues to refuse, you can file a complaint with the California Attorney General's office. You can also contact your local county district attorney's consumer protection unit. Keep the certificate itself and any written communication from the business as evidence. The Attorney General's office takes these complaints seriously because they represent a violation of consumer protection law.

Checking your certificate balance and other protections

California law also requires that a business tell you the remaining balance on your gift certificate if you ask. You can request this information in person, by phone, or online, depending on how the business accepts inquiries. The business must provide the balance at no charge.

If your gift certificate is lost or stolen, California law does not require the business to replace it—the certificate is treated like cash. However, some businesses choose to replace lost certificates as a customer service gesture. It is worth asking, but there is no legal obligation for the business to do so.

Frequently Asked Questions

Can a California business refuse to honor my gift certificate because it is old?

No. California law prohibits expiration dates on gift certificates. A business cannot refuse to honor your certificate based on age, even if it is many years old. The only exception is if the certificate has been unused for more than two years and the business charged you a valid dormancy fee before doing so.

What if my gift certificate says "expires" on it?

That expiration date is not enforceable in California. The law treats any printed expiration date as void. You can still use the certificate after the printed date passes. If a business refuses to honor it based on that date, they are breaking the law.

Do gift cards from Target, Amazon, or other big retailers expire in California?

No. Retailer gift cards and certificates—whether physical or digital—cannot expire under California law. This applies to Target, Amazon, Best Buy, Starbucks, and virtually all other retailers. Bank-issued gift cards (Visa, Mastercard) are different and may expire, but store-specific gift cards do not.

Can a business charge me a fee to use my old gift certificate?

A business can only charge a dormancy fee if the certificate has been unused for more than two years, the fee was disclosed before you bought it, and you received written notice before the fee was charged. The fee cannot exceed $2.50 per month. Any other fee is illegal.

Where do I report a business that refused to honor my gift certificate?

You can file a complaint with the California Attorney General's office online or by mail. You can also contact your local county district attorney's consumer protection unit. Have your certificate and any written communication from the business ready when you file.