Gift Card Policy Template for Small Shops: Fill-In + Sign

The short answer: write one store gift card policy that answers six questions in plain words: do cards expire, are there fees, what happens if a card is lost, when (if ever) you pay out a small leftover balance in cash, how customers check a balance, and where the full terms live. Prefer non-expiring cards with no dormancy fees. Post the same facts on your website, on a short sign at the counter and on the receipt or purchase email. Check your state or country rules, because some places set stricter floors than federal US law.

For gift shops, boutiques, florists, bakers, makers, bookshops and salons, spas or gyms that sell service gift cards. Pair with your return policy and holiday repeat-customer plan.

Decide these things first

Expiry. Non-expiring is simplest. If you set an expiry, confirm it clears federal and state floors where you sell.
Fees. Prefer none. If you charge any fee, put the exact amount and trigger in writing before purchase.
Lost or stolen cards. Replace with proof, replace for a fee, or treat like cash. Say which.
Small leftover balances. Cash back under a threshold, or spend-down only. Match any state cash-out rule that applies.
Balance checks. In store, by phone or by email. Name a method staff can keep up with.
Where it is posted. Website page, counter sign, and one line on the receipt or gift card email.

If service gift cards use different rules than retail cards, write a second short block rather than one vague sentence.

Gift card policy template (fill-in)

Copy this, replace the brackets, delete lines that do not apply.

Gift cards at [Shop name]

What they buy: usable for [products / services / both] at [address and/or yourshop.com]. Not a credit or debit card.

Expiry: [These gift cards do not expire. / Funds remain available until at least five years after purchase or last load.]

Fees: [No dormancy, inactivity or service fees.]

Balances: ask in store, call [phone], or email [email] with the card number and [receipt / last four of the purchaser card].

Lost or stolen cards: [Treated like cash; we cannot replace them. / We may replace the unused balance on file with the original receipt and photo ID. Replacement fee: $[amount] / none.]

Small leftover balances: [Cash on request if under $[threshold]. / Leftover balances stay on the card.]

Returns paid with a gift card: go back [to the same gift card / as store credit], per our return policy.

Limits: not redeemable for cash except where the law requires it. We may refuse cards we reasonably believe were obtained fraudulently.

Questions: [phone] or [email]. Full terms: [yourshop.com/gift-cards].

Keep the same numbers everywhere, just as you would with a clear price list.

Short versions: counter sign, FAQ blurb, receipt line

Counter sign:

Gift cards do not expire. No dormancy fees. Lost cards: [receipt + ID / treated like cash]. Full terms at the counter or [yourshop.com/gift-cards].

Website FAQ blurb: Buy a gift card in store or online. Cards work for [products/services], [do not expire], and have [no fees]. Check a balance at [method]. Lost-card and small-balance rules are in our gift card policy.

Receipt or purchase email line: Gift card terms: [no expiry], [no fees]. Balance help: [phone or URL].

What the law roughly says

This is general information, not legal advice. Rules vary. Check your counsel and local law before you publish terms.

US federal floor: for covered store gift cards, 12 CFR 1005.20 generally keeps funds usable for at least five years from issue or last load if they expire, limits dormancy fees (after one year of no activity, disclosed on the card, one per month), and requires clear disclosures. See also eCFR and the CFPB Reg E page. Non-expiring, no-fee cards are the simplest path above that floor.
California: Civil Code § 1749.5 generally bans selling a gift certificate with an expiration date or service fee (narrow dormancy exception), and requires cash when cash value is under $15.
New York: GBL § 396-i generally bans most store gift certificate fees, sets a nine-year floor if funds expire, and lets holders redeem under $5 for cash. The NYS Department of State alert restates the December 2022 changes.
United Kingdom: there is no single statutory minimum expiry invented here. A GOV.UK note urges clear terms and checking expiry dates. Keep your UK wording fair and easy to find.

Customer reply templates

Balance check: Happy to help. Reply with the gift card number [and receipt details], and we will confirm the unused balance. You can also check in store.

Lost or stolen: Thanks for telling us. Under our policy, [we can replace the unused balance with the original receipt and photo ID / gift cards are treated like cash and cannot be replaced]. Email [email] if a replacement applies.

Small leftover balance: Your card shows $[amount] left. Under our policy, [balances under $[threshold] can be paid in cash / leftovers stay on the card]. Happy to help when you visit.

Holiday gift FAQ: Yes, we sell gift cards for [products/services]. They [do not expire] and have [no fees]. Full terms: [yourshop.com/gift-cards]. Popular picks right now: [1 to 3 items or services].

More tone tips: customer language for small business messages. Keep card terms on your holiday AI checklist too.

Common mistakes

Different facts on the website, sign and receipt.
Fees announced after purchase.
Copying a big-box or open-loop policy for your closed-loop store card.
Ignoring state cash-out thresholds.
No lost-card process, so staff invent answers.
Service cards with no note on who can book, or blackout dates.

Where GBot fits

GBot helps you draft the words, not run the money. Mia drafts the policy, counter sign and FAQ blurbs. Leo can make a printable sign. Nora drafts balance, lost-card and holiday replies in your voice for you to approve. Nothing posts until you say so. GBot does not sell, track, redeem or process gift cards, and it does not give legal advice.

FAQ

What should a small business gift card policy include?

Say whether cards expire, whether any fees apply, what happens if a card is lost or stolen, whether small leftover balances can be paid out in cash, how customers check a balance, and where to read the full terms. Keep the same facts on the website, a counter sign and the receipt or purchase email.

Do store gift cards have to expire?

No. Many small shops choose non-expiring store cards because that is simpler for staff and customers. Under US federal rules for covered store gift cards, if funds do expire they generally must remain usable for at least five years from issue or last load. Some states are stricter. California generally bans selling gift certificates with an expiration date. This is general information, not legal advice.

Can I charge inactivity or dormancy fees on gift cards?

Federal rules for covered store gift cards allow dormancy, inactivity or service fees only after one year with no activity, only if the fee is disclosed on the card, and only once per calendar month. Some states go further. New York largely bans those fees on store gift certificates, and California generally bans service fees with a narrow dormancy exception. Prefer a no-fee policy unless your counsel says otherwise.

Do I have to give cash for a small leftover balance?

It depends on where you sell. California generally requires cash redemption when a gift certificate's cash value is under $15. New York generally lets the holder redeem a closed-loop gift certificate for cash when the remaining value is under $5. Elsewhere, decide and state your rule clearly before purchase. This is general information, not legal advice.

What if a customer loses their gift card?

Say in the policy whether you replace lost or stolen cards, what proof you need, and whether a fee applies. Federal rules do not require free replacement for lost or stolen cards. Many small shops replace a card only with the original purchase receipt and photo ID, and only for the unused balance on file.

Can GBot issue or track my gift cards?

No. GBot can draft your gift card policy, counter sign, website FAQ and customer replies in your voice, and you approve them before they go anywhere. It does not sell, track, redeem or process gift cards, and it does not give legal advice.