Many of us have had a similar experience. We receive a gift card, put it in a “safe” place with other gift cards, and forget it exists. Inevitably, we uncover the gift card and find ourselves asking questions such as: Does this card still have any value? Has it expired? Can it expire? Will I be charged a fee for use (or non-use)? Should I call the 800 number? The experience invariably ends by putting the card aside and promising to deal with it later. But, what really does happen to the value of those cards?

Gift cards issued by retailers and other merchants are prevalent throughout the United States. They are given and received by consumers for birthdays, holidays, and other events year-round. Retailers provide them as part of special promotions, in exchange for returns of merchandise, and for customer service purposes. The popularity and widespread use of gift cards continue to increase.