Massachusetts Gift Card Rules at a Glance
Quick-reference table. Always verify current terms with the card issuer.
| Rule | What Massachusetts Law Says | Exceptions |
|---|
| Expiration of funds | Covered gift certificates must be valid for at least 7 years from the date of issuance. The expiration date must be clearly disclosed. If no expiration date is disclosed, the certificate is redeemable in perpetuity. | Promotional, loyalty, and incentive cards may expire |
| Card plastic expiry | If the card shows an expiration date, the balance must remain accessible until the required minimum validity period, typically through replacement or an alternative redemption method. | — |
| Dormancy/service fees | Under the federal CARD Act: inactivity fees only after 12 months of no use. Max one fee type per month. Fee must be disclosed on packaging before purchase. | Promotional cards may have different fee rules |
| Cash-out (small balance) | If a non-reloadable gift certificate has been redeemed for at least 90% of its face value, the holder can choose cash for the remainder. If a reloadable card has a balance of or less, the holder can choose cash or continue using the card. | Issuer may voluntarily offer cash-out — check card terms |
| Federal CARD Act overlay | Federal protections apply to most consumer gift cards, including minimum 5-year validity and limits on fees, unless the card is exempt (promotional, loyalty, or reloadable prepaid exceptions). | Closed-loop retail store cards have fewer CARD Act protections |
| Official legal source | MGL c. 200A § 5D | Massachusetts Legislature |
Expiration Rules — Details
Massachusetts requires covered gift certificates to be valid for at least 7 years from the date of issuance. The expiration date must be clearly disclosed. If no expiration date is disclosed, the certificate is redeemable in perpetuity.
MGL c. 200A § 5D provides some additional state-level protections. If your physical card shows an expiration date, that is the plastic — not the funds. You are entitled to a replacement card or another way to access the remaining balance.
Keep the receipt and packaging so you can show the date of issuance. If a retailer says your card has expired before 7 years, ask for written policy details and keep records.
Service Fees — What Is Allowed
Massachusetts law focuses on validity and cash-out rights. For cards covered by the federal CARD Act, dormancy or inactivity fees are limited:
- Inactivity fee can only be charged after 12 consecutive months of no use
- Only one fee type per month is permitted
- Fee amount and terms must be clearly disclosed on card packaging before purchase
If you need help, contact the issuer first and then the Massachusetts Attorney General for consumer guidance.
Cash-Out Right for Small Balances
Massachusetts provides a cash-out right that depends on whether the card is reloadable:
What you can do:
- Non-reloadable gift certificates: after you redeem at least 90% of the face value, you can choose cash for the remaining balance or keep using the card.
- Reloadable gift certificates: if the remaining value is or less, you can choose cash or continue using the card.
- Issuers may require you to request cash-out in person or through customer service.
Important: These rules apply to covered gift certificates under Chapter 200A. Promotional or loyalty cards may have different terms, so always read the card disclosures.
Cards That Are Exempt from These Protections
Not all cards are covered by Massachusetts or federal gift card 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 or federal 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" 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 Massachusetts gift card law as of March 2026. Laws can change. Always verify current rules on the official Massachusetts Legislature site and check current issuer terms. This is educational information only — not legal advice.