State comptroller warns residents to use or lose their holiday gift cards

State officials are warning consumers to use gift cards collected in the past five years before they expire.

State Comptroller Thomas P. DiNapoli said the state accumulated $21 million in unused gift card funds last year, turned over from retailers to the comptroller’s Office of Unused Funds.

"Tis the season of giving, not losing, so please spend those gift cards and check to see if you have unclaimed funds," DiNapoli said in a statement. "Many New Yorkers don’t realize gift cards may have their balances transferred to the Office of Unclaimed Funds after five years of inactivity."

Long Island has accumulated nearly $11.5 million in unclaimed gift cards funds, amassed since 1985, according to the comptroller’s office. Long Island was the second-highest region in the state for unclaimed gift cards, behind New York City, which totaled nearly $48.5 million in unclaimed gift card funds.

Comptroller officials said the amount of unclaimed gift card funds has more than tripled since 2014 when $5.8 million in gift cards went unclaimed.

Officials said funds from unused gift cards purchased before 2022 are turned over by retailers to the comptroller’s office. Gift cards bought on or after Dec. 10, 2022, don't expire for nine years from the date of purchase, according to the state’s Division of Consumer Protection. A recent law that extended the expiration to nine years also prevents the gift card from diminishing in value. 

A gift card can be used until the balance is depleted and each use restarts the five-year dormancy, but the expiration is fixed, according to a DiNapoli spokeswoman.

DiNapoli urged residents to register their gift cards, saying: "The retailer has to not only turn over the unclaimed funds, but they have to turn over the information with the account number so that we could then track the claim back."

Information on how to register a gift card can usually be found on the card itself. Those who want to check if they have unclaimed funds can use this link.

Many gift cards may go unused if forgotten after the holidays or they may be partially used in stores or restaurants, said Andrew Forman, an associate professor of marketing at Hofstra University.

"Retailers are not going to tell you a gift card needs to be used," Forman said. "If they lapse and go unused, they’re worthless pieces of plastic at that point."

Those with unused gift cards should check the back for the balance, as well as any contact information or expiration date. The card may have a phone number or website to check on whether it is still viable and the retailer should also be able to tell if the card's funds were turned over to the state as unclaimed. 

Recipients can register gift cards with retailers in order to claim ownership or they can be claimed if they were purchased with a store credit card. Gift cards sold in California, Florida and Oregon cannot expire, under state laws.

With Shari Einhorn

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.