Can I charge inactivity fees on gift certificates?

Only within narrow limits, and many states remove the option entirely. Federal law permits an inactivity (dormancy) fee only after a long stretch of no use, and it must be disclosed up front.

• No fee until at least 12 months of no activity on the certificate.
• No more than one fee per month after that point.
• The fee and its terms must be clearly disclosed before purchase.
• Many states restrict or ban inactivity fees, so state law can override the federal allowance.

Check your state rules before adding any fee, since this is general information rather than legal advice.