Yes, they do, typically ranging from 1-5 years from issuance. You will need to be reissued a card after it expires.
Funds on the cards don’t expire, though. In a 2016 report by the Consumer Financial Protection Bureau, some consumers complained that they had money on their cards when they expired but the issuer didn’t reissue cards that included those balances. If that happens to you, reach out to the prepaid company to see if it can be resolved. If not, you can submit a complaint on the CFPB website.
Do Visa Gift Cards Expire?
Yes, Visa gift cards do have an expiration date. Typically, the expiration date is noted on the back or front of the card itself. After the expiration date has passed, the card will no longer be valid and the remaining balance will be forfeited. It is important to use up the balance of the gift card before it expires to ensure that all of the funds are utilized.
Understanding Prepaid Card Expiration
Physical Card vs. Funds Expiration
It's crucial to understand the difference between your physical card expiring and your funds expiring:
- Physical Card Expiration: All prepaid cards have an expiration date embossed on the front (typically in MM/YY format). This expiration relates to the physical plastic card and its embedded security features, which need periodic updating.
- Funds Expiration: The money loaded onto your prepaid card does not expire when the physical card does. The Consumer Financial Protection Bureau's Prepaid Accounts Rule (12 CFR § 1005.18), effective April 2019, strengthened protections ensuring consumers maintain access to their funds.
According to a 2016 CFPB Monthly Complaint Report on prepaid products, approximately 6,000 consumers reported issues accessing funds on expired prepaid cards between 2011 and 2016, prompting stronger regulations to address this concern.
How to Identify Your Card's Expiration Date
Your prepaid card's expiration date is typically located on the front of the card and appears in an MM/YY format (for example, 03/26 would expire at the end of March 2026). Some issuers may print "valid thru" or "good thru" before this date.
How to Get Money Off an Expired Prepaid Card?
If your prepaid card expires with funds remaining, your first step should be contacting the card issuer for detailed guidance. Sometimes, you may have the option to request a replacement card or receive a check with your balance, potentially for a fee. Always refer to your cardholder agreement for more information. Remember, gift cards under federal law must maintain validity for a minimum of five years, and inactivity fees can only be charged after a year under certain conditions.2
Consumer Protections for Expiring Prepaid Cards
Regulatory Framework
The prepaid card market has seen significant regulatory changes to protect consumers:
- 2009: Credit CARD Act established initial protections for gift cards
- 2016: CFPB finalized the Prepaid Accounts Rule
- April 2019: Full implementation of CFPB Prepaid Accounts Rule (12 CFR § 1005.18)
Consumer Complaint Data
According to the CFPB's "Monthly Complaint Report, Vol. 16" published in October 2016, consumers reported several issues related to prepaid card expiration:
- Difficulty accessing funds after cards expired
- Replacement cards not automatically issued
- Unexpected fees for replacement cards
- Balance not properly transferred to new cards
- Customer service challenges when resolving expiration issues
These complaints directly influenced stronger protections in the 2019 Prepaid Accounts Rule.
Under current regulations:
- Card issuers must clearly disclose expiration policies before purchase
- Funds on prepaid cards must remain accessible to consumers even after physical card expiration
- Replacement cards must be provided through reasonable means
- Fees for replacing expired cards must be clearly disclosed
- Issuers cannot charge inactivity fees on gift cards until after 12 months of inactivity
What To Do When Your Prepaid Card Is Expiring
Before Expiration (60-90 days prior):
- Check your current balance through your online account, mobile app, or by calling the number on the back of your card
- Review your card agreement for specific expiration policies
- Look for communications from your card issuer about automatic replacement
- Ensure your address is current in the card issuer's system
When You Receive a Replacement Card:
- Activate your new card immediately following the provided instructions
- Verify that your balance has transferred correctly
- Update any automatic payments or subscriptions with your new card details
- Destroy your old card securely by cutting through the chip and magnetic stripe
If You Don't Receive a Replacement Card:
- Contact customer service at least 30 days before expiration
- Be prepared to verify your identity
- Ask about replacement options and any applicable fees
- Request expedited shipping if needed (note: this may incur additional costs)
If Your Card Has Already Expired:
- Contact the card issuer's customer service immediately
- Provide your card information and verify your identity
- Request access to your funds and a replacement card
- If the issuer is uncooperative, reference the CFPB Prepaid Rule provisions
Must-know Tips for Using Prepaid Cards1
Check the Fine Print Carefully. Always take the question “What types of advance fees can I be charged with the prepaid card?” into our consideration and try to check its fine print cautiously before making a decision that if we should use it.
Beware of Chargebacks. It is possible to get stuck with the chargebacks of some products or services we already paid for if the retailers do not accept our prepaid card though at the time of our purchase we can get the products we want. In this case, we should check their terms of payments before purchasing and reach out the retailers if we’re still unsure about whether they accept our prepaid cards.
Keep Track of Our Card History. Since prepaid cards do not automatically report our card histories like debit or credit cards, we should actively sign up an online balance-check service through our prepaid card issuer’s website to track our spending activities. However, we need to know that such balance-check service may be free or getting charged as well.
Don’t Lose Our Card. In comparison with traditional credit or debit cards, we’re less likely to get money back if we lose our cards. In addition, the fraud protection applying for prepaid cards is also different from the former cards. Therefore, it is very important to read the terms and conditions carefully to understand what our liability could be in such the situation. Furthermore, some prepaid card issuers may require a fee for replacing our stolen/lost prepaid cards.
Close the Card and Request a Refund Check. If we do not want to use our prepaid card anymore, just contact our issuers to do the action or deactivate it online by ourselves, then we can have a check. Worth noting that it may have a fee, so check the fine print before choosing it.
Frequently Asked Questions
Do I lose my money when my prepaid card expires?
No. Under federal regulations, the funds on your prepaid card do not expire when the physical card does. Card issuers must provide means for you to access your funds, typically by issuing a replacement card.
How do I get a replacement for my expired prepaid card?
Most major issuers automatically send replacement cards 30-60 days before expiration. If you don't receive one, contact customer service using the number on the back of your card or visit the issuer's website.
Can prepaid card issuers charge a fee to replace an expired card?
Yes, but any fees must be clearly disclosed in your cardholder agreement. Many major issuers provide standard replacement cards for free, though expedited shipping usually costs extra.
What happens to automatic payments when my prepaid card expires?
You will need to update your payment information with any merchants where you have automatic payments set up. The new card, even from the same issuer, will have a different card number and expiration date.
How can I file a complaint if I can't access my funds after my card expired?
If you're unable to resolve the issue with your card issuer, you can file a complaint with the Consumer Financial Protection Bureau at www.consumerfinance.gov/complaint or by calling 1-855-411-2372.
Resources for Prepaid Card Users
- CFPB's Prepaid Cards and Accounts - Official guidance and resources
- FTC's Information on Gift Cards and Gift Certificates - Explains federal protections for gift cards
- CFPB Complaint Portal - File complaints about prepaid card issues
- Prepaid Account Regulations (12 CFR § 1005.18) - Full regulatory text governing prepaid accounts
Conclusion
While prepaid credit cards do have expiration dates, federal regulations protect consumers from losing access to their funds when cards expire. Understanding your rights and responsibilities can help ensure a smooth transition when your card reaches its expiration date. If you encounter any issues accessing your funds after card expiration, know that you have protections under federal law and resources available to help resolve the situation.
Softjourn's team has deep experience in developing financial software that enables secure and reliable payment processing. Our specialists have the expertise to create intuitive, scalable, and cost-effective payment processing systems that meet the highest digital payments industry standards. Our software allows businesses to access the latest payment technologies and securely manage their real-time financial transactions with unrivaled reliability and accuracy. With Softjourn, businesses can be sure to have a cost-effective and secure payment processing solution that is tailored to their needs.
We understand the importance of compliance with international and local regulations, such as PCI-DSS, GDPR, and others. Our team is experienced in building highly secure systems with end-to-end encryption and authentication protocols. We also provide integration with popular payment systems and gateways, such as Stripe, PayPal, and others.
Contact us today to learn more about what Softjourn can do for you.
