Gift card disclosure requirements: what to show before purchase
Before a customer buys a gift certificate, store gift card, or general-use prepaid card, the issuer or seller must disclose specific information to the consumer.
Key takeaways
Run these 5 checks before a customer pays for a card. Each check maps to a specific disclosure obligation or restriction.
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Prepurchase disclosure check Verify that you disclose the information required by the cited fee and expiration provisions before the sale completes. Legal Information Institute states that a person issuing or selling a gift certificate or store gift card must disclose specific information to the consumer before purchase.
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Retainable format check Ensure written and electronic disclosures are in a retainable form. Legal Information Institute notes that except for specific paragraphs, disclosures made under the section must be retainable.
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Card marking check Confirm that required disclosures appear on the certificate or card itself. Legal Information Institute requires that disclosures for certain paragraphs be made on the certificate or card, or on the card, code, or other device for loyalty, award, or promotional gift cards.
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Ohio terms check If you operate in Ohio, check for expiration dates less than two years. Ohio Laws and Administrative Rules states that subject to division (C), no person shall sell a gift card containing an expiration date less than two years after issuance.
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Florida terms check If a gift certificate is purchased or a credit memo is issued in Florida, check expiration dates and postsale fees, including the stated exceptions for a charitable contribution and an employee-incentive program.
Legal Information Institute identifies this obligation as part of the requirements for gift cards and gift certificates. The disclosure must include the information required by paragraphs (d)(2), (e)(3), and (f)(1) of that section. This prepurchase step happens before the sale is completed, not after the card is activated or used. See Record 6 cash totals before you close the shop till for the separate close-of-day till task.
The federal rules also set limits on fees and expiration dates that affect what terms you can offer. According to U.S. Government Publishing Office, it is unlawful for any person to impose a dormancy fee, inactivity charge or fee, or service fee with respect to a gift certificate, store gift card, or general-use prepaid card, except as provided under paragraphs (2) through (4) of that statute. The same source states that it is unlawful for any person to sell or issue a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date, except as provided under paragraph (2).
Which retail and network cards the federal rules generally cover
The Federal Reserve Board's final rules to restrict fees and expiration dates on gift cards generally cover two main categories of cards sold in shops. Federal Reserve defines the first category as retail gift cards, which can be used to buy goods or services at a single merchant or an affiliated group of merchants. If your shop issues a card that works only at your location or at a small network of stores you own, it falls into this retail gift card definition. The second category includes network-branded gift cards, which are redeemable at any merchant that accepts the card brand. These cards do not limit purchases to a single shop but allow redemption across a broader network of participating businesses.
The rules protect consumers from certain unexpected costs and require that gift card terms and conditions be clearly stated. This requirement applies to the cards covered by the Board's final rules. When you sell a card, the terms must be clear so the customer understands what the card can and cannot do. The scope of these rules is specific to the card types defined by the Federal Reserve. Do not assume that every card-like instrument in your shop is covered; check if it fits the single-merchant or network-branded definitions. If your shop sells a card that works only at your counter, it is a retail gift card under this definition. See Shop refund policy: 5 checks for your counter notice for a separate notice at the same counter. If it works at other stores too, it may be a network-branded card.
Check Ohio and Florida restrictions before approving terms
Before you finalize terms for cards sold in these states, verify that your expiration dates and fee structures align with the specific state statutes. See Resale certificates: 6 checks across 4 states for a separate state-by-state shop check. The federal rules provide a baseline, but state laws can impose stricter limits or specific exceptions that your shop must follow.
Ohio expiration limits
According to Ohio Laws and Administrative Rules, a person or entity cannot sell a gift card with an expiration date less than two years after the issue date. This restriction is subject to division (C) of the section.
Ohio fee restrictions
The same source states that within two years after a gift card is issued, no person or entity may charge service charges or fees that reduce the total redemption value. This prohibition explicitly includes dormancy fees, latency fees, and administrative fees. If your shop plans to charge any fee that lowers the amount a holder can redeem, you must confirm that the fee does not apply within the first two years of the card's life.
Florida general prohibitions
For cards purchased or credit memos issued in Florida, The Florida Legislature prohibits expiration dates, expiration periods, or any postsale charges or fees. This ban covers service charges, dormancy fees, account maintenance fees, and cash-out fees. If your shop operates in Florida, the default rule is that gift certificates cannot expire and cannot incur these specific types of charges.
Florida stated exceptions
Florida law allows exceptions for specific types of gift certificates, provided certain conditions are met. A gift certificate provided as a charitable contribution may have an expiration date of not less than three years. Alternatively, a gift certificate provided as a benefit under an employee-incentive program may have an expiration date of not less than one year. In both cases, the expiration date must be prominently disclosed in writing to the consumer at the time the certificate is provided. These exceptions do not apply to standard retail gift cards sold to the general public.
Separate prepurchase information from required card markings
Not every gift-card term belongs on the physical card. The regulation distinguishes between information you must give the customer before they buy and specific disclosures that must appear directly on the certificate or card itself. Legal Information Institute identifies which disclosures fall into the "on the card" category. Specifically, disclosures required by paragraphs (a)(4)(iii), (d)(2), (e)(3), and (f)(2) of the section must be made on the certificate or card. For loyalty, award, or promotional gift cards, these same disclosures must appear on the card, code, or other device. This means if your shop issues a promotional card with a code, that code or device carries the marking requirement, not just a separate paper slip.
A second category of on-card disclosure involves fee information contact details. According to Legal Information Institute, a toll-free telephone number and, if one is maintained, a Web site that a consumer may use to obtain information about fees described in paragraphs (d)(2) and (f)(1) must be disclosed on the certificate or card. You cannot rely on a counter sign or a verbal explanation for this specific contact information; it must be printed on the card or certificate.
Gift-card disclosure reference table by publisher
The table below lists the five specific checks your shop must run before selling a card. Each row identifies the publisher and the exact rule or value that defines that check.
| Check Type | Publisher | Rule or Value |
|---|---|---|
| Prepurchase disclosure check | Legal Information Institute | Disclose information required by paragraphs (d)(2), (e)(3), and (f)(1) before purchase |
| Retainable format check | Legal Information Institute | Except for paragraphs (c)(3) and (h)(2), disclosures that are written or electronic must stay in a form the buyer can retain |
| Card marking check | Legal Information Institute | Specific disclosures must be made on the certificate or card |
| Ohio terms check | Ohio Laws and Administrative Rules | No expiration date less than two years after issuance, subject to division (C) |
| Florida terms check | The Florida Legislature | No expiration date, expiration period, or postsale charge or fee |
Use this table to verify that your current card layouts and counter scripts meet each requirement. If a cell’s rule does not match your current practice, update your materials before the next sale.
Keep the required disclosures in retainable form
Before a customer buys a card, most gift-card terms must exist in a form the buyer can keep. According to Legal Information Institute, written and electronic disclosures under 12 CFR § 1005.20 must be in a retainable form, except for the disclosures in paragraphs (c)(3) and (h)(2) of that section. This means the shop’s prepurchase notice—whether printed on a counter card, displayed on a register screen, or sent by email—should give the customer something they can take away or access later. A verbal summary alone does not satisfy the retainable-form requirement for these disclosures.
The rule carves out a narrow exception. The same source states that only disclosures provided under paragraphs (c)(3) and (h)(2) may be given orally. If your shop’s terms include information that falls under those specific paragraphs, you may convey it by speaking to the customer without providing a written or electronic copy. For every other required disclosure, however, oral delivery is not sufficient. The customer needs a tangible or electronically accessible record.
By separating the limited oral exceptions from the broader retainable-form requirement, you ensure that customers receive the necessary information in a way that allows them to review the terms after the purchase. This approach aligns with the federal framework for gift card disclosures, which prioritizes transparency and customer access to key terms.
Illustrative example of one shop card
Take a store gift card sold at one shop and redeemable only there. Before the buyer pays, the shop hands over a written notice the buyer can keep. The card shows the on-card disclosures, plus a toll-free telephone number for fee information. The illustrative expiration date is 2 years after issuance. That meets the Ohio minimum of two years, subject to division (C), and the shop adds no service fee in those 2 years. If this certificate is purchased in Florida in an ordinary sale, the shop sets no expiration date and no postsale fee. A different illustrative certificate, given as a charitable contribution, can show an expiration date of 3 years. One given as an employee-incentive benefit can show an expiration date of 1 year. In both of those cases the date is written prominently when the certificate is provided.
Do this before the next sale
Print the card and the prepurchase notice you use today. Read each row in the table against that wording. Where a row does not match, change the notice or the card before you sell another one.
FAQ: gift-card terms at the shop counter
What are the gift card disclosure requirements before purchase?
Before a consumer purchases a gift certificate, store gift card, or general-use prepaid card, the issuer or seller must disclose specific information. The Legal Information Institute cites the requirement to provide details found in paragraphs (d)(2), (e)(3), and (f)(1) of the relevant section. These disclosures must occur prior to the purchase transaction.
Does the federal coverage include my shop's single-merchant gift cards?
Yes, the rules generally cover retail gift cards used at a single merchant or an affiliated group of merchants. The Federal Reserve confirms that these rules also apply to network-branded cards redeemable at any merchant accepting the card brand. Your shop's single-merchant cards fall within this general coverage scope.
Can my shop give all gift-card disclosures orally?
No, oral delivery is restricted to specific disclosures only. The Legal Information Institute states that only disclosures provided under paragraphs (c)(3) and (h)(2) may be given orally. All other required disclosures must be provided in a retainable form, such as written or electronic documents.
Which gift-card disclosures must appear on the card?
Certain disclosures must be printed directly on the certificate or card itself. The Legal Information Institute requires that information from paragraphs (a)(4)(iii), (d)(2), (e)(3), and (f)(2) appear on the certificate or card, or on the card, code, or other device for a loyalty, award, or promotional gift card.
How do the Ohio and Florida restrictions differ?
Ohio restricts expiration dates to no less than two years after issuance, subject to specific division exceptions. The Ohio Laws and Administrative Rules detail this two-year minimum for sold gift cards. Florida generally prohibits expiration dates and postsale charges on gift certificates purchased in the state. The The Florida Legislature notes that this prohibition includes service, dormancy, and cash-out fees, with specific exceptions for charitable and employee-incentive cards.