Consumer’s EdgeConsumer’s Edge
Consumer Protection Division, Maryland Office of the Attorney General
Gift Cards
Gift certicates and gift cards are a popular gift-giving op-
tion. Gift cards make the gift buying process less stressful
for the gift-giver, and the recipient can use them to pur-
chase something that suits them. As easy and stress-free
as they may seem, some consumers have unhappily dis-
covered that gift cards can deliver unexpected issues and
drawbacks.
Some buyers have discovered that the gift card they pur-
chased was not activated, had already been used, or was a
scam used to obtain their personal information. Some re-
cipients nd that their gift cards can only be used at the
retail store, not online. Others are disappointed to nd out
that if the items they purchase with the card cost less than
the amount on the card, the remainder is not refunded as
cash (this varies by state, so it may pay to ask the retailer
their cash-back policy).
Prior to the passage of state and federal laws, some gift card
recipients experienced problems in the form of fees and ex-
piration dates. Maryland law and the federal Credit Card
Accountability Responsibility and Disclosure (CARD) Act
both require that expiration dates and fees are clearly in-
dicated on the gift card or its packaging. It’s still recom-
mended that both the buyer and the recipient be mindful of
any expiration dates and/or fees that come with the card.
What You Should Know
Store-Specic Gift Cards
Store-specic gift certicates or cards are those that may be
used to buy merchandise only from a particular store and its
aliates. Under Maryland law, store-specic gift cards may
not expire for at least four years after the date of purchase,
and the issuer may not impose fees or charges of any kind
during that four-year period. Federal legislation stretches ex-
piration protection to ve years; however, consumers may
be charged fees during this fth year and any year thereafter.
Any terms or conditions concerning an expiration date
or fee must be printed clearly in a visible place on the
front or back of the card, on a sticker permanently axed
to the gift card, or on an envelope containing the gift card.
Typical fees include service charges, fees for inactivity, main-
tenance fees, and reload fees. These fees cannot be charged
more than once a month, and require that there is at least one
year of inactivity on the card prior to being initially assessed.
It’s also important to note that these terms and conditions
may not be changed after the date of purchase or issu-
ance unless the change benets the consumer.
Issue #125
January 2023
Anthony G. Brown, Maryland Attorney General
Gift Cards Issued by Banks or General Purpose Cards
Gift cards issued by banks are cards that are processed
through a national credit or debit card service, such as Dis-
cover, MasterCard, or Visa. These cards can be used to pur-
chase goods or services from unaliated stores. Although
the advantage of these cards is their exibility – they can be
used in most stores – they don’t always have the same pro-
tections as store-specic cards. If the cards are reloadable,
these cards are not limited by law as to how long they must
be in eect. The law only requires that the expiration date
be clearly disclosed, as well as all fees, including service
fees, dormancy fees, account maintenance fees, cash-out
fees, gift card replacement fees, activation and reactivation
fees, and fees for online and phone orders. If the card is
not reloadable, the Credit CARD Act prevents expiration in
less than ve years, but fees may still apply once a month
if there has been at least one year of inactivity on the gift
certicate or card.
tips for purchasing gift cards:
• Ask questions. When purchasing any gift certicate
or gift card, read the disclosures and ask questions
so you know all the terms and conditions, including
the expiration date and all fees that may apply.
• Purchase gift cards only from reputable sources.
Cards sold by individuals or at auction sites often
turn out to be stolen or counterfeit. Purchasing gift
cards directly from the store is a better option. You
can always check out a business by calling the Con-
sumer Protection Division at 410-528-8662 (toll-
free in Maryland: 1-888-743-0023). In addition,
you may check with the Better Business Bureau
by visiting www.bbb.org/local-bbb/bbb-of-greater-
maryland.
• Be wary of FREE gift card oers. Pop-up ads, text
messages, emails, or social media posts oering free
gift cards could be scams attempting to steal your
personal information, release malware into your
computer, or otherwise get you to disclose your -
nancial information (like a credit card number).
• Encourage immediate use. Especially if the gift card
is redeemable at a small business, encourage the re-
cipient to use a store-specic gift card sooner rather
than later – you never know when a business
may close, potentially leaving the recipient
empty-handed!
• Check on purchase exceptions. Can the recipient use
a store-specic gift card at either the physical store or
the store’s website? Are there any catches for general
purpose gift cards? Reading the ne print can help an-
swer these questions.
• Treat your gift card like cash. Keep your card in a safe
place. If your card is lost or stolen, generally, you are
out of luck. Some retail chains will issue a new card,
but others won’t. Some general purpose gift cards can
be replaced, but often for a fee.
• Proof of Purchase. Keep the receipt in case something
is wrong with the card.
• Be wary of gift card scams. Examine the card for any
signs of tampering. Crooks sometimes copy numbers
from cards accessible to the public in stores, then use
them to make purchases over the Internet after the card
has been activated. Some store employees have been
caught pocketing newly purchased cards and giving
customers blank ones. At the time of purchase, have
the store employee scan the gift card in front of you,
and show you that it has been activated on your receipt.
This will verify the correct amount has been added to
the card.
Consumer Protection Division
200 St. Paul Place, 16th Fl., Baltimore, MD 21202
• General Consumer Complaints: 410-528-8662
Toll-free: 1-888-743-0023 TDD: 410-576-6372
En español: 410-230-1712
9 a.m. to 3 p.m. Monday-Friday
www.marylandattorneygeneral.gov/Pages/CPD/
• Health Consumer Complaints: 410-528-1840
Toll-free: 1-877-261-8807 TDD: 410-576-6372
9 a.m. to 4:30 p.m. Monday-Friday
www.marylandcares.org
• For information on branch oces in Largo, Salisbury,
Hagerstown, and a full list of oces across Maryland, visit:
www.marylandattorneygeneral.gov/Pages/contactus.aspx
How to contact us
The Consumer’s Edge is produced by the Maryland Attorney
General’s Office. Reproductions are encouraged.
Maryland
Attorney General
Anthony G. Brown
www.marylandattorneygeneral.gov
