North Carolina gift card rules: expiry, fees and unclaimed property

Gift cards are cash in advance, and the rules about them cover three questions: how long a card must last, what fees you may charge and what happens to money that is never spent. In North Carolina the answers come from a mix of federal law and state statutes on unclaimed property. This guide, checked in October 2026, explains each in plain terms and where the sources are unclear. It is general information, not legal advice. Ask the North Carolina Department of State Treasurer and your accountant how the rules apply to your cards.

How long must a gift card last?

Federal law, under the Credit CARD Act of 2009, says that a gift card sold to a consumer cannot expire within five years of the date it was activated or the date funds were last loaded. Many restaurants therefore print no expiration date at all, which simplifies the card for the guest and avoids the unclaimed property questions below. If you do print a date, make sure the disclosure is clear and that the date is no earlier than the federal minimum. Promotional cards that you give away, such as a bonus card with a purchase, are treated differently from purchased cards, so read the rules on those.

Can you charge fees on a gift card?

State law may also limit fees on gift cards, so ask the North Carolina Department of Justice or your attorney what applies. Federal rules limit inactivity fees and require clear disclosure. Many independent restaurants choose to charge no fees at all, which is simpler and builds trust. If you use a third-party card provider, ask what fees it applies and who bears them.

When does a gift card become unclaimed property?

Under North Carolina's Unclaimed Property Act, a gift certificate or electronic gift card that carries an expiration date and has gone unredeemed or dormant for more than three years after sale is deemed abandoned, and a portion of the unredeemed value must be reported and turned over to the state. According to the statute, the amount deemed abandoned is 60 percent of the unredeemed face value. A card that conspicuously states that it does not expire, bears no expiration date or states that a printed date does not apply in North Carolina is not abandoned property under this rule. Because the details are technical, ask your accountant or the Treasurer's office how to report.

What should you print on the card?

A simple, clear card avoids most problems. Consider stating that the card has no expiration date, that it has no fees, that it is not redeemable for cash except as required by law and that lost cards cannot be replaced unless registered, if that is your policy. Put your business name and contact details on the card or the sleeve. A card that is easy to understand is less likely to produce a dispute or a complaint.

How should you record gift card sales?

A gift card is a liability when you sell it, not revenue. You record revenue when the guest redeems the card. Your point-of-sale or accounting system should track the outstanding balance of unredeemed cards. If you sell cards through a third party, such as a grocery store or an online marketplace, ask how and when you are paid, and how you will know the balance. Tell your accountant how you handle breakage, the portion of value that is never redeemed.

What if you close or sell the business?

If you close, outstanding cards are a liability to the customers. Notify holders where you can, honor the cards through a transition period or arrange for a successor to do so. When you sell, the sale agreement should say who takes responsibility for the cards. Ask a lawyer for the right wording. Unredeemed value may also create obligations to the state if the business ends.

If you cannot honor cards, tell the public through your website, social pages and a sign on the door. Offer holders a way to contact you, and consider a refund for recent purchases if you can. Customers who bought a card for a gift deserve a clear answer. Keep your records after closing, because claims can come years later, and ask your accountant what must be reported to the state.

How do you promote gift cards fairly?

Holiday seasons, Mother's Day and graduation are strong times for sales. A bonus card for a purchase, such as a free card with a larger purchase, can encourage sales, but its terms may differ from a purchased card and should be stated clearly. Be honest about limits, such as a bonus card that expires or applies only on certain days.

Consider a simple holiday offer that gives the buyer value without confusion, such as a printed bonus card with a clear last-use date and a note that it is a promotion. Train staff to explain the terms at the register, and to ask whether the guest wants a physical card or a digital one. Offer to mail cards to out-of-town buyers, and track how many are sold each month. Gift cards bring in new guests, so give them a good first visit.

What records should you keep?

Keep sales records, redemption records, balances and the dates of each. Keep evidence of the disclosures you made on the card and at the point of sale. These records support your reporting and protect you if a customer disputes a balance. Review them each quarter.

More guides for your business:

• North Carolina ABC permits and the 30 percent food rule for restaurants
• Hiring restaurant staff in North Carolina: E-Verify, minors and paperwork
• North Carolina tip pooling rules for restaurants (2026)

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