Compliance reference
New York Gift Card Laws: Expiration, Fees and Escheatment
New York merchants have two layers of gift card rules to satisfy: the federal CARD Act floor on expiration and fees, and whatever New York adds on top — including any obligation to remit unredeemed balances to the state as unclaimed property.
Last verified: 2026-08-12
Not legal or accounting advice
This page is a plain-language summary for merchants, not legal or accounting advice. Statutes change, and the rules that apply to you depend on where your customers live, where you are incorporated and how your program is structured. Confirm your obligations with counsel or your accountant in every state where you sell cards before acting on anything here.
The federal CARD Act baseline
The federal CARD Act of 2009 requires that funds remain valid for at least five years from the date of purchase or last load, limits inactivity fees to cards unused for at least twelve months, and requires that any fees and expiration terms be clearly disclosed on the card or packaging. State law sets the floor higher in many places, and adds escheatment — the requirement to remit unclaimed balances to the state as unclaimed property.
What New York adds on top
Below are the New York-specific rules as summarised from the statute cited at the bottom of this page. Anything not yet checked against the primary source is left visibly marked rather than guessed at.
| Expiration | Gift certificates may not expire earlier than nine years after the date of issuance (N.Y. Gen. Bus. Law § 396-i). |
|---|---|
| Inactivity and service fees | [TODO: verify] — New York amended § 396-i in 2022 with respect to maintenance and service fees; confirm the current rule and any permitted fee against the live statute text before relying on it. |
| Cash redemption | [TODO: verify] — confirm whether New York provides a small-balance cash redemption right. |
- The nine-year floor is nearly double the federal minimum, which is another reason the practical default is purchased value that never expires.
- New York's fee rules have moved recently. Anything printed on an old card carrier should be re-checked against the current statute before you reorder stock.
- Escheatment applies, so retain activation, load and last-activity dates per card for the full reporting horizon.
Escheatment in New York
Escheatment is the requirement to report and remit unclaimed balances to the state after a dormancy period. Which state applies is generally determined by the card owner's address and, absent that, by the issuer's state of incorporation — so this page can apply to you even if you are not based here.
| Escheatment required | Yes |
|---|---|
| Dormancy period | Unredeemed gift card balances are covered by the Abandoned Property Law (N.Y. Aban. Prop. Law § 1315). [TODO: verify] — confirm the current dormancy period. |
| Percentage remitted | [TODO: verify] — confirm the remittable percentage of the unredeemed balance. |
| Who it applies to | Issuers and merchants holding unredeemed balances sourced to New York, typically by the owner's last known address and otherwise by the issuer's state of incorporation. Confirm your specific position with counsel. |
What records a merchant needs to keep
You cannot answer a dormancy question, or defend a position in an audit, without card-level history. Keep these regardless of which state you sell in.
- Card number, activation date and initial load amount for every card issued.
- Every subsequent load, redemption and adjustment, with date, amount and location.
- Current outstanding balance per card and the date of last customer-initiated activity.
- The address or state associated with the card owner where you captured one, because escheatment is generally sourced to the owner's address and otherwise to the issuer's state of incorporation.
- The terms printed on the card or carrier at the time of sale, including any disclosed fees or expiration language.
- Final balance and activity reports from any prior gift card provider you migrated away from.
Statute citation and primary source
N.Y. Gen. Bus. Law § 396-i; N.Y. Aban. Prop. Law § 1315
Last verified: 2026-08-12