Florida restaurant gift card law: no expiry, no fees

A gift certificate that a Florida restaurant sells for money generally cannot carry an expiration date, and the seller cannot charge service, dormancy or maintenance fees after the sale. Section 501.95 of the Florida Statutes sets that rule, and the federal gift card rules sit underneath it. The state rule is stricter, so for a Florida restaurant the Florida rule is the one to follow.

What does section 501.95 require?

The section covers gift certificates bought for money and credit memos issued for returned merchandise, and both must be redeemable for merchandise, food or services. A gift certificate sold or issued in Florida generally may not expire, and no expiration period may apply. Post-sale charges are prohibited, including service charges, dormancy fees, account maintenance fees and cash-out fees.

Enforcement follows section 501.142, so the state can act on a complaint.

When can a card still expire?

The statute allows expiration dates in narrow situations:

• Charitable contributions: at least 3 years.
• Employee-incentive programs: at least 1 year.
• Loyalty or promotional programs: an expiration date is allowed if the recipient pays no separate identifiable charge.
• Certain event packages, such as conventions or sporting events: allowed for limited-duration events where most of the value paid is for the event.

A charity or employee-incentive expiration date must be disclosed prominently in writing when the card is given. For a restaurant, the one most likely to matter is the promotional card, such as a free dessert card given with a purchase. Because the guest paid nothing separately for it, it can have an expiration date.

How should you word a promotional card?

1. Call it a bonus, reward or promotional card, not a gift card.
2. Print the expiration date and any limits on its face.
3. Do not sell it. If a guest pays for it, treat it as a gift certificate.
4. Keep paid and promotional cards in separate series so staff can tell them apart.

A common example is buy a $100 gift card and receive a $20 bonus card for use in January. The $100 card cannot expire; the $20 bonus card can, because the guest did not pay for it separately. Ask an attorney to check your wording, since the line between paid and promotional is where disputes occur.

What does federal law add?

The federal gift card rule at 12 CFR 1005.20 requires at least five years before funds expire, limits dormancy fees to cards with no activity for a year and requires clear disclosures on the card. Because Florida bars expiration and these fees for paid certificates, the federal rule matters mainly for what your cards must say. The federal rule also excludes loyalty and promotional cards from the gift card definition while still requiring labeling and disclosures on them.

When is sales tax due?

A gift card is generally not taxed when you sell it, and the meal is taxed when the guest redeems the card. Confirm the treatment with the Department of Revenue or your accountant. Record gift card sales in a liability account rather than as revenue, and take them into sales as they are redeemed.

What about cards sold by third parties?

If a retailer or platform sells your cards, read the agreement for the fees it charges you and who holds the money. Check that the card the guest receives follows the Florida rule, including the absence of expiration dates.

What should you do now?

Check your gift card terms for an expiration date or fee. If you find one, remove it from the terms and from the printed cards, and honor older cards that carry one.

How do you handle unredeemed balances?

Because a paid card does not expire in Florida, a balance can sit for years. Keep a record of outstanding balances by card number so you can honor them, and ask your accountant how to treat long-dormant balances for bookkeeping and for any state unclaimed property reporting. Do not write balances off on your own schedule. A card presented after five years must still be honored, and your records are what let a server say yes.

What belongs on the card and the receipt?

Put the business name, a way to check the balance and any limits on use, such as not redeemable for cash or not valid for alcohol if your policy says so. A limit is easier to defend if it was printed on the card at purchase. The terms cannot add fees. Keep the receipt for a card sale simple: the amount loaded, the card number and the date, and no tax, since the tax comes later when the card is used. For online sales, send the guest a confirmation that repeats those terms, and make sure the digital card shows the balance.

More guides for your business:

• Florida credit card surcharges: the statute, the 2015 ruling and today
• Florida automatic renewal law for dining clubs and memberships
• Florida restaurant sales tax: the 6 percent rate and county surtax

More in the US guides for food businesses.