For every birthday and holiday season, gift cards are among the most popular presents to receive. If you’re diligent, you spend them quickly. But sometimes, they expire before you get the chance to purchase anything.
If you are the recipient of a gift card, here’s what to know about when they expire and other protections you have:
Are there laws regulating gift card purchases?
Yes, the federal government regulates the sale of gift cards. The 2009 Credit CARD Act offers consumer protections for gift cards designated for stores and restaurants or issued by banks.
How soon can gift cards expire in Wisconsin?
Under federal law, gift cards cannot expire until at least five years after they are issued. The exact date of expiration is often disclosed on the front or back of the card.
The law does not cover gift cards given out as a part of a promotion or reward, such as for making a purchase, or reloadable spending cards not marketed as gift cards. In Wisconsin, gift cards given as a part of a promotion or for making a purchase can expire in one year.
Do gift cards have to show an expiration date?
Yes. The expiration date of any gift card must be clearly visible to a consumer.
Can companies charge me a fee for not using my gift card?
Yes. According to the Federal Deposit Insurance Corporation, companies can charge fees for inactivity or dormancy, but only if the card has gone unused for a year and the policy clearly states that charges could be incurred.
What about gift certificates, telephone cards and reloadable spending cards?
The federal law protects the following types of gift cards:
The following cards are excluded from federal gift card law protections:
Can I get an extension on the expiration date of my gift card in Wisconsin?
Yes, if it is the type of gift card that allows for the addition of more money after it was purchased. Gift cards must reset the expiration date to extend at least five years after the last time money was added to the account.
Consumers should be able to request a replacement card with an updated expiration date for no extra fee, according to DATCP.
What can I do if my gift card is stolen or funds are missing?
Gift cards are frequently tampered with by scammers. Consumers often face significant challenges when seeking reimbursement for stolen gift cards.
Retailers who do honor a consumer’s request to replace a gift card may charge replacement fees.
Can I return a gift card in Wisconsin?
It is uncommon for consumers to be able to return gift cards to a retailer. However, many people have turned to online platforms like GCX, CardCash, and Prepaid2Cash to sell gift cards for a discounted price.
Can I get my money back if I buy a gift card from a company that goes out of business?
No, gift cards can become worthless if the business files for bankruptcy or closes. If this happens, the Wisconsin consumer protection department suggests:
What agencies can I contact with a gift card complaint?
Report gift card fraud or theft to the Federal Trade Commission at ReportFraud.ftc.gov or (877) 382-4357.Report bank-issued card concerns to the Comptroller of the Currency at occ.treas.gov or (800) 613-6743.
Contact Wisconsin’s general consumer protection hotline at DATCPHotline@wisconsin.gov or (800) 422-7128.
More gift card safety and security tips
The Federal Trade Commission has a variety of tips for consumers when shopping for gift cards:
Tamia Fowlkes is a Public Investigator reporter for the Milwaukee Journal Sentinel. She can be reached at tfowlkes@gannett.com.
Questions? Tips? Contact Public Investigator
Government corruption. Corporate wrongdoing. Consumer complaints. Medical scams. Public Investigator is a new initiative of the Milwaukee Journal Sentinel and its sister newsrooms across Wisconsin. Our team wants to hear your tips, chase the leads and uncover the truth. We’ll investigate anywhere in Wisconsin. Send your tips to publicinvestigator@gannett.com or call 414-319-9061. You can also submit tips at jsonline.com/tips.
This article originally appeared on Milwaukee Journal Sentinel: What to know about gift cards in Wisconsin: expiration dates, fees, laws
Reporting by Tamia Fowlkes, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
USA TODAY Network via Reuters Connect
