Costco gift cards lose value when they sit unused, but the decline is usually slow and tied to specific rules
Costco gift cards do not expire, but they can lose value over time through inactivity fees in some states, or through a process called escheatment where unclaimed property gets turned over to the state. The most common reason a balance appears to have dropped is that you are remembering the amount wrong, or someone else has used the card. If you have checked your balance recently and it has fallen without your use, the cause is almost always one of these: an inactivity fee charged by your state, a transaction you do not remember, or a glitch in Costco's system that a phone call can fix.
Key Takeaways
- Costco gift cards themselves do not expire, but some states charge inactivity fees that reduce the balance after 12 to 24 months of no use.
- If your card has not been used in over a year and your state allows inactivity fees, check your state's unclaimed property office to see if the balance was transferred there.
- Unauthorized transactions on a Costco gift card are rare but possible if someone else has the card number; contact Costco member services to dispute charges.
- Costco's system sometimes shows an incorrect balance due to a processing delay; call 1-800-955-2292 to verify the actual amount and request a correction if needed.
How inactivity fees drain Costco gift card balances
About 30 states allow retailers to charge inactivity fees on gift cards if the card has not been used for a set period, usually 12 to 24 months. The fee amount and timing vary by state law. California, for example, allows a fee of $1 to $2.50 per month after 24 months of inactivity. New York allows $1 per month after 12 months. Some states do not allow inactivity fees at all.
Costco follows the laws of the state where the card was purchased. If you bought your card in California and have not used it in two years, Costco may have charged a monthly fee starting in month 25. The balance would decline slowly but noticeably over time. The card itself remains valid — you can still use it — but the dollar amount on it shrinks.
To find out whether your state charges inactivity fees, search your state's attorney general website for "gift card inactivity fees" or contact your state's consumer protection office. The National Association of Unclaimed Property Administrators (NAUPA) also maintains a state-by-state guide.
Unclaimed property laws and where your balance may have gone
If a Costco gift card balance reaches zero or is not used for an extended period (usually three to five years, depending on state law), the remaining balance may be transferred to your state's unclaimed property program. This is called escheatment. The money does not disappear — it sits in a state fund that you can claim, but you have to know to look for it.
If you believe your Costco gift card balance was transferred to unclaimed property, visit your state's unclaimed property website. Most states run a searchable database where you can enter your name and see if funds are listed. The National Association of Unclaimed Property Administrators website (unclaimed.org) has links to every state's program. You will need to file a claim with the state to recover the money, which usually takes four to eight weeks.
Unauthorized use and how to spot it
Costco gift cards can be used online or in-store, and the card number can be read from the back of the card. If someone else has access to your card number, they can make purchases. This is uncommon but not impossible, especially if the card was lost, stolen, or the number was shared.
Check your Costco account online or ask for a receipt at the warehouse to see recent purchases made with your card. If you see transactions you did not make, contact Costco member services at 1-800-955-2292. Costco can freeze the card and issue a replacement. They will investigate the unauthorized charges, though their dispute process is less formal than a credit card chargeback.
System errors and processing delays that show wrong balances
Costco's gift card system occasionally displays an incorrect balance due to a processing delay, especially if you just made a purchase or loaded funds onto the card. The system can take a few hours to update, particularly during peak shopping times. If your balance looks wrong immediately after a transaction, wait 24 hours and check again.
If the balance is still wrong after a full day, or if it has been wrong for weeks, call Costco member services. They can look up the actual balance in their system and issue a replacement card with the correct amount if there is a discrepancy. This is a free service and usually takes one phone call.
How to check your Costco gift card balance
You can check your balance in three ways: online through Costco.com (log in and go to your account), by phone at 1-800-955-2292, or in person at any Costco warehouse. When you call or visit, have your card number ready. The in-person method is fastest if you are already at the warehouse.
Write down the balance you see and the date you checked it. If you check again later and the number has dropped, you will have proof of the change and can show it to Costco or your state's consumer protection office if needed.
What to do if your balance has dropped and you cannot explain it
Start by calling Costco member services at 1-800-955-2292 with your card number and the balance you remember. They can tell you whether inactivity fees were charged, whether the card was used, or whether there is a system error. Keep notes of the date and time you called and the name of the representative you spoke with.
If Costco confirms that inactivity fees were charged and you live in a state that allows them, you have limited recourse — the fees are legal. However, if you live in a state that does not allow inactivity fees (like Texas or Florida), Costco should not have charged them, and you can file a complaint with your state's attorney general.
If the balance was transferred to unclaimed property, file a claim with your state's program. If Costco cannot explain the drop and you have proof the card was not used, ask for a replacement card with the original balance restored. Costco often honors this request as a customer service gesture.
Frequently Asked Questions
Do Costco gift cards expire?
No, Costco gift cards do not have an expiration date. You can use them at any time. However, some states allow inactivity fees that reduce the balance if the card sits unused for 12 to 24 months, so the card itself does not expire but the money on it may decline.
Can I get my money back if inactivity fees were charged?
It depends on your state. If your state does not allow inactivity fees, you can file a complaint with your state's attorney general and request a refund. If your state does allow them, the fees are legal and Costco is not required to refund them, though you can ask Costco to waive them as a one-time courtesy.
What if someone used my Costco gift card without permission?
Contact Costco member services at 1-800-955-2292 and report the unauthorized use. Provide the transaction details if you have them. Costco will freeze the card and investigate. They can issue a replacement card, though their dispute process is less formal than a credit card company's.
How long does it take to recover money from unclaimed property?
Filing a claim with your state's unclaimed property program usually takes four to eight weeks from the time you submit your claim. Some states are faster. You can check the status of your claim on your state's website or by calling the unclaimed property office.
Can I prevent inactivity fees on my Costco gift card?
Yes. Use the card at least once every 12 months. Even a small purchase resets the inactivity clock. If you do not plan to use the card soon, consider giving it to someone else or checking whether your state's unclaimed property office will hold it for you without charging fees.