Restaurant gift cards: expiry, fees and what happens if the place closes

A restaurant gift card is a popular present, and a surprisingly common source of lost money. Cards get tucked into drawers, restaurants close, and fine print about expiry or fees catches people out. The law gives you some protection, and it varies by state. This guide covers what you can expect in Massachusetts, Oregon, New York, New Hampshire and Arizona, and what to do to make sure a card gets used.

What does federal law say about gift cards?

Federal rules under the Credit CARD Act set a baseline. In general, a store gift card cannot expire within five years of the date it was bought or last loaded with money, and fees are limited. Cards that are free promotions, such as a bonus card given with a purchase, are treated differently and can have shorter expiry dates. Federal rules apply across the country, and a state can protect you further. Our guide for restaurants explains the federal rules from the owner's side.

What about the state rules?

State rules differ, and a state's rule can be stronger than the federal one. Here is what could be confirmed for this guide:

State	What reporting found
Massachusetts	A gift certificate sold in the state must stay valid for at least seven years from issue, and the issue and expiration dates must be shown
New Hampshire	The rule depends on the card's value, and published summaries differ on the dollar threshold. Check the state Department of Justice
New York	Gift certificates and cards must stay valid for at least nine years under General Business Law section 396-i. Check the state Attorney General
Oregon	Check the state Department of Justice. Federal rules apply
Arizona	Check the state Attorney General. Federal rules apply

Use the table as a starting point and check the current rule with the state's Attorney General or consumer protection office. Secondary sources, including law firm and vendor blogs, do not always agree.

How do you tell if a card has an expiry date?

Read the card or the voucher. Federal rules require clear disclosure of expiry dates and fees. If the card is an e-gift card, read the terms in the email and the website. If there is no date, the card does not expire under most rules, though a restaurant can still go out of business. Photograph both sides of a paper card and the receipt, so you have proof of the purchase date and amount.

What if you lose the card?

A restaurant gift card is often treated like cash. If you lose a paper card, the restaurant is not obliged to replace it, though some will if you have proof of purchase and the card was registered. E-gift cards are easier to recover because the code is in your email. Write down the card number when you receive it. For a card you gave as a present, keep the receipt.

What happens if the restaurant closes?

This is the hardest case. If a restaurant closes, a gift card often becomes difficult or impossible to use, and you may become one of many creditors if the business goes through bankruptcy. Some chains or groups honor cards at other locations. A few states have rules that give gift card holders priority, but they are not universal. The best protection is to use the card soon.

If you hold a card to a restaurant that has closed, contact the owner or the company's website. If it was bought with a credit card, ask your card issuer whether a chargeback is possible, though results vary and time limits apply.

Can you get cash for a small balance?

Some states require cash back for small balances, usually a few dollars. A report on Massachusetts noted a rule that if a customer uses a large share of the card's value, they can ask for the remainder in cash; the exact rule should be confirmed with the Attorney General. Ask the restaurant politely if you have a small balance left, and many will give it to you or let you pay the difference.

Are there fees on restaurant gift cards?

Federal rules limit fees on cards that are not a promotion. Dormancy or inactivity fees are restricted. Some third-party gift cards sold in stores have purchase fees, which the restaurant does not set. Read the packaging. A restaurant's own card sold at the restaurant usually has no fee.

Are restaurant promotions different?

Yes. A card that comes free with a purchase, such as a 20 dollar bonus card with a 100 dollar card, is usually a promotion with its own rules, often a shorter expiry date and a use-by date printed on it. Use promotional cards first. Restaurants sometimes run a bonus offer during the holidays, and these cards can expire in a few months.

How do you make sure the card gets used?

1. Check the date and terms when you receive the card.
2. Use it within a few months, and note it in your calendar.
3. Use the whole balance over one or two visits, or ask for a replacement card for the remainder.
4. Keep the card with your wallet or phone, not in a drawer.
5. Tell the person who gave it to you that you enjoyed the meal. They will be happy.

Where can you complain?

If a restaurant refuses to honor a card that should still be valid, start with a polite request to the manager. If that fails, contact the state Attorney General's consumer protection office. On Mosey you can keep lists of places you want to try, which is a useful reminder of where your gift cards are waiting.

More guides to read next:

• Restaurant tax and tipping in MA, OR, NY, NH and AZ: what the check adds
• Eating out with food allergies in the US: what the law covers
• How much to tip in the US: restaurants, bars, cafés and delivery

More in the US food guides and the ranked lists of places.