As the holiday season approaches, people around the world are seeking out presents for their loved ones.
A staple gift is the simple gift card. While these may be good in theory, over the years, the internet has seen many stories of people who have had trouble actually using the money that they received.
For example, one woman arrived at a Sephora with a $150 gift card, only to find that the money had been depleted. Another woman alleged that, after eating at Olive Garden, a server refused to let them use their gift card to pay.
Now, a user on TikTok has sparked discussion after revealing another potential issue with gift cards: maintenance fees.
What is a gift card maintenance fee?
In a clip with over 51,000 views, TikTok user Kelsey Autumn (@kelsey.autumn) explains that she recently found a stack of unused gift cards after going through an old bag.
Among those gift cards was a Visa gift card, listed as expiring in 2027. However, upon checking the balance online, she discovered that the company had been charging a “maintenance fee” of $4.95 per month.
“Are you joking?” she asks. “So, because I set it aside and forgot about it…I don’t get to use the card, even though it doesn’t expire for another two years? I don’t get to use the money because [there’s] a monthly maintenance fee attached to it?”
She then proceeds to read off the warning on the back of the card, which notes that the card does have a monthly maintenance fee after 12 months of inactivity.
“‘Funds do not expire,’” she reads from the back of the card, then jokingly adds, “but they will take them from you!”
Are gift card maintenance fees common?
As noted by FindLaw, the Credit Card Accountability Responsibility and Disclosure (CARD) Act established federal regulations for gift card policies. These regulations cover dormancy fees, inactivity fees, balance inquiry fees, service fees, and expiration dates.
Under the CARD Act, gift card issuers can only impose fees for non-use starting at least one year after the last transaction, and gift cards must remain valid for at least five years after being issued.
Whether the maintenance fees experienced by Autumn are legal depends on the state in which she’s located, as many states, such as California and Massachusetts, have banned gift card maintenance fees.
@kelsey.autumn Little PSA if you have any forgetful friends or family don’t get them GC’s with monthly maintenance fees attached 🥲 i am so sorry for whoever got me this. ALL my other cards have money so what the frick #holidays #gifts #giftcard #holidayseason ♬ original sound – Kelsey Autumn
Commenters share their thoughts
In the comments section, users shared their experiences dealing with these fees.
“I got a Visa GC for Xmas from my brother. I forgot about it and when I went to use it, there’s only $10 left of the $50 it had originally,” recalled a commenter. “$5 fee per month.”
“Yeah, all that money, sitting there collecting interest for the financial institution — I would really love to hear how they justify a maintenance fee when you likely received no indication that the funds were being ‘maintained,’” offered another.
“I was gonna give gift cards to my niece’s for Christmas, guess cash it is,” added a third.
The Daily Dot reached out to Visa and Autumn via email.
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