Colorado Gift Card Rules at a Glance
Quick-reference table. Always verify current terms with the card issuer.
| Rule | What Colorado Law Says | Exceptions |
|---|
| Expiration of funds | Gift card funds cannot expire for at least 7 years from the date of purchase or last use under CO Rev Stat § 6-1-726 — stronger than the 5-year federal minimum | Promotional, loyalty, and incentive cards may have different terms |
| Card plastic expiry | The physical card may show an expiry date, but the balance must remain accessible for at least 7 years — issuer must provide replacement or alternate redemption method | — |
| Dormancy/service fees | Dormancy fees allowed only after 18 months of inactivity. Fees must be clearly disclosed before purchase. | Promotional cards may have different fee rules |
| Cash-out (small balance) | No state cash-out requirement. Colorado law does not require issuers to redeem small remaining balances in cash. | Some issuers may offer cash-out voluntarily — check card terms |
| Federal CARD Act overlay | Funds cannot expire for at least 5 years from purchase. Colorado's 7-year rule is more protective and takes precedence for state-sold cards. | Applies to most general-purpose prepaid and open-loop gift cards |
| Official legal source | CO Rev Stat § 6-1-726 | Colorado General Assembly |
Expiration Rules — Details
Colorado law goes further than federal law: gift card funds cannot expire for at least 7 years from the date of purchase or last use. This is among the stronger state-level protections in the country.
If your physical card shows an expiration date, that is the date the plastic expires — not the funds. You are entitled to a replacement card or another way to access the remaining balance (phone, website, or in-store) for at least 7 years.
What to do if an issuer refuses: document the conversation, note the date and representative name, and contact the Colorado AG's Consumer Protection Section or the FTC.
Service Fees — What Is Allowed
A dormancy (inactivity) fee can only be charged if:
- The card has been inactive for 18+ consecutive months
- The fee is clearly disclosed on the card or packaging before purchase
- Only one fee type per month is charged
If fees appear before 18 months or are not properly disclosed, you have grounds to dispute with the issuer and file a complaint with the Colorado AG.
Cash-Out Right for Small Balances
Colorado does not require issuers to cash out small remaining balances. Unlike California, there is no state law mandating that a consumer can demand cash for a low gift card balance.
However, some individual issuers may offer this voluntarily. Always check the card's terms and conditions or contact the issuer directly to ask about their policy.
Tip: Even without a cash-out right, your balance is protected for at least 7 years. Keep your card and receipt safe so you can access remaining funds well beyond the card's printed expiration date.
Cards That Are Exempt from These Protections
Not all cards are covered by Colorado's consumer protections. The following card types may have different or reduced protections:
Promotional cards
Issued as part of a promotion or marketing program. These can have expiration dates and different fee structures.
Loyalty/reward cards
Points or rewards cards issued as part of a loyalty program. Funds may be subject to program terms, not state law.
Rebate cards
Cards issued as rebates for a purchase. Often treated as promotional instruments with shorter validity windows.
Practical Checklist: Before You Buy and After You Receive
Before buying
- ✓ Check the packaging for fee disclosures
- ✓ Note any activation fee (one-time, not recurring)
- ✓ Look for "no expiration" or "7-year" language on the card or packaging
- ✓ Verify it is a consumer gift card, not a promotional card
After receiving
- ✓ Photograph front and back of the card
- ✓ Keep the receipt and original packaging
- ✓ Check balance on the issuer's official website or phone number printed on the card
- ✓ Register the card if the issuer allows it — helps with replacement if lost
What to Do If Something Goes Wrong
1
Contact the issuer first
Use the phone number on the back of the card or the official website. Explain the issue clearly and ask for a case number.
2
Document everything
Write down dates, representative names, and what was said. Keep receipts, screenshots of balance checks, and packaging.
About this guide
This page summarizes Colorado gift card law as of March 2026. Laws can change. Always verify current rules on the official Colorado General Assembly site and check current issuer terms. This is educational information only — not legal advice.