A gift certificate is a prepaid promise from a business: the holder has a set amount of value to spend on that business's goods or services. Download it free as a Word or PDF file, fill in the amount and terms, and issue it.
Free to use. Legally binding under the ESIGN Act, UETA, and eIDAS.Updated November 2026 by Document eSign
A gift certificate is a prepaid promise from one business to the person holding it: someone has paid for, or been given, a set amount of value that the business will accept toward its own goods or services. A buyer purchases it, often as a gift, and the recipient spends it down at that merchant until the balance runs out. The value is fixed when the certificate is issued and tied to a single business or a group of related locations, which is what separates it from a general-purpose prepaid card you can use anywhere. In everyday use, gift certificate and gift card mean nearly the same thing. The certificate is usually the paper or printable version; the card is the plastic or digital one. When they are electronic, both are regulated the same way under federal law. A gift certificate is not a coupon or a discount voucher, which cut a price rather than store value, and it is not store credit, which a shop hands out when you return something. It is also not a charitable donation receipt. What makes a gift certificate both useful and lawful is that it states the amount, who issued it, when, whether and when it expires, and any fees, so the holder knows exactly what they can spend and for how long.
Who uses it
A restaurant, salon, or shop selling gift certificates to customersA small business giving one as a prize, a thank-you, or a promotionA service provider such as a photographer, trainer, or spa offering prepaid sessions as a giftSomeone buying a gift tied to a specific store instead of handing over cashAn online seller issuing a digital gift certificate with a redemption code
What's inside
A certificate header with a unique number, the issue date, and who it is to and from
The prepaid amount, written in both words and figures
The issuing business name, address, and the single store or locations where it can be used
A redemption section covering in-store, online, or phone use and how a partial balance carries over
An expiration line, or a clear statement that the value does not expire
A fee disclosure line for any dormancy or inactivity fee, with the amount, how often, and the trigger
A cash-redemption and refund clause that follows your state's small-balance rule
A lost-or-stolen and balance-check section with a contact number or website
A signature line for the issuer to authorize the certificate
HOW IT WORKS
From template to signed in three steps.
01
Start from the template
Open it in the editor with the fields already mapped, or download the DOCX to edit offline.
02
Add signers and send
Drop signature and date fields, then route each party in order or in parallel.
03
Get a sealed copy
Everyone signs, and you get a tamper-evident PDF plus an audit certificate.
Free forever. No credit card. Your recipients sign with no account.
The details
Everything to know before you send it.
1
How to fill it in
The issuing business fills this in. Keep the amount and the dates exact, and state any fee or expiration plainly on the face of the certificate, because that disclosure is what the law looks for.
Enter your business name, address, and the single merchant or locations where the certificate works.
Give the certificate a unique number so you can track its balance and catch duplicates.
Write the amount in both words and figures so it cannot be altered after issue.
Fill in who the certificate is for and who it is from, plus the issue date.
State the expiration date, or write that the value does not expire. Do not leave this blank.
Disclose any dormancy or inactivity fee: the amount, how often it applies, and what triggers it.
Add a phone number or website where the holder can check the balance or report a loss.
Sign to authorize it, give the holder the certificate, and keep a record of what you issued.
2
Gift certificate, gift card, voucher, or store credit
These terms get used loosely, so it helps to pin them down. A gift certificate and a gift card are the same idea: prepaid value, fixed at issue, redeemable at one business or a related group of stores. The difference is mostly format and whether you can reload it. A certificate is usually paper or printable and set at a single amount; a card is often plastic or digital and some can be topped up. A discount voucher or coupon is a different animal. It gives a price break, like 20% off or $10 off a minimum spend, and it has no stored value of its own, so you can't get change from it. Store credit is what a shop issues when you return an item without a refund to your original payment, and it is tied to that customer and that return. A charitable donation receipt is not any of these; it is a nonprofit's written acknowledgment of a gift, used for tax purposes, and it belongs on its own page. If you want a prepaid amount someone can spend like money at your business, a gift certificate is the right document.
3
Do gift certificates expire? What the law allows
Federal law sets a floor, and many states go further. Under the Credit CARD Act of 2009 and the rule that implements it, Regulation E at 12 C.F.R. 1005.20 (with the statute at 15 U.S.C. 1693l-1), the funds on a gift certificate or store gift card cannot expire earlier than the later of 5 years after the date it was issued or the date value was last loaded. The expiration date, if there is one, has to be disclosed on the certificate, and if the funds do not expire, that has to be stated too. These rules took effect on August 22, 2010. One limit worth knowing: the federal definition covers electronic certificates, store gift cards, and general-use prepaid cards, but it carves out a certificate issued in paper form only, along with loyalty, award, and promotional cards. State law often reaches further and can cover paper. California makes it unlawful to even sell a gift certificate that carries an expiration date or a service fee, with only narrow exceptions (Cal. Civ. Code 1749.5). Massachusetts requires a gift certificate to stay valid for at least 7 years, and if no expiration date is disclosed it is redeemable in perpetuity (M.G.L. c. 200A, 5D). So the safe practice is to either skip an expiration date or set it well out, and always put the issue date on the certificate.
4
Fees you can and cannot charge
The federal rule is strict about fees for sitting idle. A dormancy, inactivity, or service fee can be charged only after there has been no activity on the certificate for at least 12 months, no more than 1 such fee can be imposed in any calendar month, and the fee, how often it applies, and the fact that it is for inactivity all have to be disclosed on the certificate (Regulation E, 12 C.F.R. 1005.20; the statute is 15 U.S.C. 1693l-1). This is separate from a one-time purchase or activation fee, which the inactivity rule does not ban, but which still has to be disclosed up front. Several states are tougher. California treats a service fee on a gift certificate as unlawful to sell, allowing a monthly dormancy fee only in a narrow case where the remaining value is $5 or less and the other statutory conditions are met (Cal. Civ. Code 1749.5). The honest default for most issuers is simple: don't charge inactivity fees at all. They generate complaints, they are the most heavily regulated part of gift card law, and in states like California they can put you offside just by being printed on the certificate.
5
Getting cash back for a small balance
A common question from holders is whether a leftover balance can be taken in cash instead of being spent down to zero. Federal law does not require cash back, but a number of states do once the balance gets small. California requires that a gift certificate with a cash value of less than $15 be redeemable in cash for that value (Cal. Civ. Code 1749.5(b)(2)); that threshold rose from $10 to $15 on April 1, 2026. Massachusetts gives the holder a choice at 2 points: once a non-reloadable certificate has been redeemed for at least 90% of its face value, and once a reloadable one is down to a remaining balance of $5 or less, the holder can elect to take the balance in cash or keep using the certificate (M.G.L. c. 200A, 5D). Not every state has a cash-back rule, and the thresholds that do exist differ, so check your own state's statute. For an issuer, the practical step is to track the remaining balance and honor a cash-out request where the law in your state requires one.
6
What happens to value that never gets spent
Money on a certificate that is never redeemed is called breakage, and it raises two separate questions. The first is accounting: a business normally records the sale of a gift certificate as a liability, not revenue, and only recognizes revenue when the certificate is redeemed or when it can reasonably conclude it never will be. The second is legal, and it varies a lot by state. Some states treat an unredeemed gift certificate balance as unclaimed property that must eventually be reported and turned over to the state, a process called escheat, after a set dormancy period. Many other states specifically exempt gift certificates from unclaimed property law, especially where the certificate cannot legally expire. Because the rules, dormancy periods, and exemptions differ widely from state to state, this is not something to guess at. Check your state's unclaimed property office, usually run by the state treasurer or comptroller, before you write off an old balance or assume you can keep it.
7
When it is binding, and issuing one electronically
A gift certificate is an enforceable obligation of the business that issued it. The buyer gave value for it, and the holder is entitled to spend that value on the issuer's terms and under the gift card laws above. You do not need a notary or a witness for a gift certificate to count. A digital certificate works the same way as a printed one. Under the federal ESIGN Act (15 U.S.C. 7001), a record or signature cannot be denied legal effect just because it is electronic, so a certificate you email with a redemption code, or one a customer signs for online, is as valid as a paper version. The issuer's signature on this template is there to authorize and date the certificate and to make clear who stands behind it, which also helps if a certificate's authenticity is ever questioned. Keep your own copy of every certificate you issue, along with the balance, so you can verify it later.
8
Mistakes issuers make
A few errors come up again and again. Leaving the expiration line blank is the big one: in some states that makes the certificate valid forever, which may not be what you intended, so state your terms either way. Hidden or undisclosed fees are the next, and they are exactly what the federal and state rules target, so if you charge anything, print it on the certificate. Not tracking balances is a practical failure rather than a legal one, but it leads to disputes and to honoring a certificate twice. Ignoring your state's cash-back rule can turn a small leftover balance into a complaint. And treating a gift certificate like a coupon, by attaching conditions that quietly shrink its value, invites trouble, because a certificate is prepaid value the holder already owns. This page gives a general template and plain-language explanation; it is not legal advice. Gift card rules differ by state and change over time, so confirm the current rules with your state's attorney general or consumer protection office, or ask a professional, before you issue certificates at scale.
This template and the guidance on this page are provided for general information only and are not legal advice. Laws differ by country and state, so review the final document against your own situation and have a qualified lawyer check anything high-value or regulated before you sign.
FAQ
Questions, answered.
Do gift certificates expire?
Under federal law, the funds cannot expire earlier than the later of 5 years from when the certificate was issued or when value was last loaded, and any expiration date must be disclosed on it (Regulation E, 12 C.F.R. 1005.20 and 15 U.S.C. 1693l-1, effective August 22, 2010). Many states go further: California makes it unlawful to sell a gift certificate with an expiration date at all (Cal. Civ. Code 1749.5), and Massachusetts requires at least 7 years and treats one with no stated expiration as valid in perpetuity (M.G.L. c. 200A, 5D).
Can a business charge fees on a gift certificate?
Federal law allows a dormancy, inactivity, or service fee only after 12 months with no activity, limits it to 1 fee per calendar month, and requires the fee and its terms to be disclosed on the certificate (12 C.F.R. 1005.20; 15 U.S.C. 1693l-1). A one-time purchase or activation fee is separate and not banned by that rule, but must still be disclosed. Some states are stricter: California treats a service fee on a gift certificate as unlawful to sell except in a narrow low-balance case.
Can I get cash back for a gift certificate balance?
Federal law does not require it, but several states do once the balance is small. California requires a gift certificate with a cash value under $15 to be redeemable in cash (Cal. Civ. Code 1749.5(b)(2); the threshold rose from $10 to $15 on April 1, 2026). Massachusetts lets the holder take the balance in cash once a non-reloadable certificate is redeemed for at least 90% of its face value, or a reloadable one is down to $5 or less. Rules vary, so check your state.
What is the difference between a gift certificate and a gift card?
Very little in practice. Both are prepaid value tied to a single business or group of related stores. A gift certificate is usually the paper or printable version set at a fixed amount; a gift card is often plastic or digital and some can be reloaded. When they are electronic, federal gift card rules treat them the same way. Neither is a coupon or discount voucher, which cut a price instead of storing value, and neither is store credit from a return.
Is a gift certificate legally binding?
Yes. It is an enforceable obligation of the business that issued it, because the buyer paid value for it and the holder is entitled to spend that value on the stated terms. No notary or witness is needed. A digital certificate is valid too: under the federal ESIGN Act (15 U.S.C. 7001), an electronic record or signature cannot be denied legal effect just for being electronic.
What should a gift certificate include?
The amount in words and figures, a unique certificate number, the issue date, the issuing business and where it can be redeemed, and clear terms for expiration and any fees. State plainly whether the value expires and when, disclose any inactivity fee and how often it applies, and add a way to check the balance or report a loss. Clear disclosure of expiration and fees is what the gift card rules require.
Is the gift certificate template available in Word format?
Yes. Download the gift certificate template as a Word (.docx) file and edit it in Microsoft Word, Google Docs, or Pages. You can also download a PDF or fill it in and sign online.
Can I download the gift certificate as a PDF?
Yes. A print-ready PDF is available alongside the Word version. Download either one free, or fill it in and sign online without downloading anything.
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