United States – Northamerica (International) – FAQ

Is there a legal rule in the USA on the validity period of Giftcards?

Under federal law Giftcard balances may not expire for at least five years and fees are tightly limited. Some states grant longer periods such as nine years in New York.

How are Giftcards treated for tax purposes in the USA (VAT, single-purpose / multi-purpose)?

There is no national VAT system. Under sales tax rules the sale of a Giftcard is generally not taxable and tax applies upon redemption for the purchased goods or services. There is no formal SPV or MPV system.

What consumer rights apply in the USA for expired Giftcards?

Federal law requires at least five years validity and inactivity fees only after twelve months and under conditions. Stricter state rules may grant additional rights.

What special rules apply in the USA to the sale, issuance, or redemption of Giftcards?

Transparent Terms and Conditions on deadlines and fees are mandatory. State level differences are significant including unclaimed property rules. Early redemption is recommended.