Texas Gift Card Rules at a Glance
Quick-reference table. Always verify current terms with the card issuer.
| Rule | What Texas Law Says | Key Notes |
|---|
| Expiration of funds | Texas Business & Commerce Code § 604A generally prohibits expiration of gift certificate funds | Promotional and loyalty cards may be exempt |
| Card expiry date | An expiry date on the plastic applies to the card, not the funds. Issuer must keep balance accessible. | Contact issuer for a replacement card if needed |
| Dormancy/service fees | Fees allowed only if disclosed on the card. Texas does not set a specific inactivity period, but disclosure is mandatory. | Federal CARD Act also applies: 12-month inactivity minimum |
| Cash-out right | Texas does not mandate cash redemption of small balances. Redemption per issuer terms. | Some issuers offer voluntary cash-out — check card terms |
| Federal CARD Act overlay | Funds cannot expire for at least 5 years from purchase. Inactivity fees only after 12 months of no use. | Applies to open-loop (Visa/MC/Amex) cards |
| Official legal source | TX Bus. & Com. Code Ch. 604A | Texas Legislature Online |
Expiration Protections in Texas
Texas Business & Commerce Code Chapter 604A restricts issuers from setting expiration dates on the funds of a gift certificate or store gift card sold to consumers.
If your card shows an expiration date, that typically means the physical card expires, not the money. You can request a replacement card or alternative redemption method from the issuer.
Exception: promotional cards issued as incentives (not purchased by the consumer) may have expiration dates under Texas law.
Service Fees and Disclosure
Texas requires that any fee terms be clearly disclosed on the gift certificate or its packaging at the time of sale. Without prior disclosure, fees cannot be applied.
The federal Credit CARD Act of 2009 adds a floor: inactivity fees may only be charged after 12 months of no activity, and only one fee type per month is allowed.
If you see unexplained fees on a card without prior disclosure, contact the issuer and reference Texas Bus. & Com. Code § 604A.002.
Texas vs. Other States: Key Differences
| Rule | Texas | California | New York |
|---|
| Fund expiration ban | Yes | Yes | Yes |
| Inactivity fee delay | Disclosure required; 12 mo. (federal) | 24 months | 12 months |
| State cash-out right | No mandate | Yes (≤$10) | No mandate |
| Disclosure of fees | Required | Required | Required |
What to Do If Your Texas Gift Card Has Issues
1
Verify the balance on the issuer's official site
Use the phone number or URL printed on the card. Avoid third-party balance-check sites.
2
Request the card's fee disclosure document
If fees appeared without prior disclosure, ask the issuer for the fee schedule they were required to provide at purchase.
About this guide
This page summarizes Texas gift card law as of March 2026. Laws can change. Always verify current rules on the official Texas Legislature site and check current issuer terms. This is educational information only — not legal advice.