Gift Cards: 6 Ways to Keep the Full Balance

A gift card feels like cash, but it is not. It can be lost, forgotten, drained by fees, or stuck at a store you rarely visit. Here is how to keep the full balance, whether you are giving a card or getting one.

Key takeaways

• Under federal rules, money on most gift cards cannot expire for at least five years.
• Fees are limited, but a fee to buy the card, or to replace a lost one, is allowed.
• Use the card early, and keep a photo of the front, back and receipt.

What the rules say

The federal CARD Act sets floors for most store and bank gift cards:

1. The money cannot expire for at least five years from the purchase date, or from the last time money was added.
2. An inactivity fee can only start after a year of no use, and only once a month.
3. The card or its packaging must show the expiration date and any fees.

Promotional cards, such as a free card given with a purchase, can follow different rules. State laws can also be stricter. The FTC's gift card advice page is the place to check the details.

Six steps to keep the full balance

1. Read the fine print before you buy. Look for a purchase fee, a shipping fee and any monthly fee. Cards sold by banks and card networks often carry a fee that store cards do not. The cost is printed on the card or its packaging.

2. Buy from a source you trust. Buy from the store itself or a well known retailer. The FTC warns that cards sold on auction sites may be counterfeit or obtained fraudulently.

3. Use it in the first month. A card you use soon is a card you do not lose. Put a calendar reminder on the day after you receive it.

4. Photograph it right away. Take a clear photo of the front, the back and the receipt. If the card is lost, you have the number and proof of purchase to give the issuer. Keep the photo private, because the card number is the money.

5. Check the balance before you shop. Use the number on the back or the issuer's site, never a link in a text or email. Know the balance so you can plan the purchase.

6. Spend the small leftover on purpose. A $3.40 balance is easy to abandon. Pay with the card first at checkout, then cover the rest with another payment method. Some stores let you ask the cashier to use it all.

If you are the one giving a gift card

• Pick a store the person actually shops at.
• Tell them the amount and keep the receipt available if they need it.
• Pick a card with no purchase fee when you can.

Before you buy, check your plan

A card is a good gift when you know it will be used. If you are not sure, see our guide to holiday return policies, which covers what happens when a gift does not work out. To stay safe while buying online, use the checks in holiday shopping scams. A gift card is also an easy impulse purchase, so the 24 hour rule applies.

Your checklist for this week

• ☐ Find any gift cards you already have and list the balances.
• ☐ Photograph the front, back and receipt of each one.
• ☐ Spend the oldest card first.
• ☐ Before you buy a new card, read the fee line on the packaging.
• ☐ Set a reminder to use each card within a month.

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Rules change and vary by state, so check the card and the issuer for current terms. Check current price before you buy. See our disclosure policy for details.