Discover® Gift Cardholder Agreement


Discover Gift Cardholder Agreement

This is the Agreement between you and Discover Bank for Discover® Gift Card (“Card”). Please read this Agreement carefully and retain it for future reference. By signing, accepting or using your Card, you agree to be bound by this Agreement. In this Agreement, “we,” “us” and “our” means Discover Bank, the issuer of the Card and/or its affiliate, DFS Services LLC, the financial company that processes or services the Card. “Cardholder,” “you” and “your” means the purchaser of the Card, and if a different person, any user of the Card. “Available Funds” means the monetary value of your Card. This Agreement applies to both the purchaser and any other user of the Card. It is the purchaser’s obligation to provide this Agreement to any user.

The Card, which is denominated with a predetermined value, may be used by you to make purchases (up to the predetermined value) at most U.S. merchant locations where Discover Cards are accepted (“Merchants”). However, the Card is neither a credit card nor an FDIC-insured deposit account.


1. Each time you use the Card, you represent and warrant to us that you are either the Cardholder or an authorized user of the Card.

2. Unless a Merchant chooses to refund your Card, each Card transaction is a final, non-cancellable and non-refundable transaction.

3. You may use any number of Cards when making a purchase as long as the Merchant accepts them under its policy. However, Available Funds cannot be transferred from one Card to another.

4. You cannot use the Card to access cash at an ATM or Merchant, and the Card is only redeemable for goods and services, except as otherwise required by law.

5. Certain Merchants may require that we verify your address when you attempt to use your Card for certain types of transactions. If your Card was not initially sent to your mailing address, we may be unable to verify your address and a Merchant may decline the transaction. If you would like to provide your address to us for address verification purposes, please call Customer Service toll free at 1-866-522-7026.


You are responsible for all transactions on your Card. It is therefore important for you to keep track of your Available Funds. You cannot add monetary value to your Card. Your Card is intended for use at retail locations in the U.S. and with Internet merchants. As with cash, you cannot “stop payment” on Card transactions.

The use of your Card to purchase goods and services from Merchants results in a
simultaneous debit to your Available Funds. If you authorize a transaction and then fail to make a purchase as planned, the authorization will result in a hold against your Available Funds for up to 31 days.


Your Card is transferable to others and, subject to applicable law, there are no age restrictions on its use. However, your Card may only be used within the U.S. and should not be transferred to anyone located outside the U.S.


Merchants may credit returns back to the Card, so keep your Card until you are sure that you won’t need a Merchant refund to your card. Thereafter, you should destroy any Card that has no value. You are responsible for resolving all disputes (including disputes related to the quality, safety or legality of merchandise or services) arising out of Card transactions directly with the appropriate Merchant, and you agree that we have no liability in this regard.


If you do not use your Card within twelve (12) months after activation, you will be charged a servicing fee of $2.50 per month, except where such fees are limited or prohibited by law. Fees are not applied as long as the card has been used within the prior 12 months. We recommend not activating your card until you are ready to use it.


You should protect your Card against theft with the same level of care that you use to protect the cash in your wallet. We cannot prevent the unauthorized use of your Card or refund any amounts lost due to unauthorized use.

You should immediately notify us if your Card has been lost, damaged or stolen by calling us at 1-866-522-7026 and providing us your name, address, Card number and other requested information. If we are able to verify that you are the proper Cardholder and there are Available Funds remaining on the lost, damaged or stolen Card, you may request a replacement Card, which we will provide at no cost to you. The value of the replacement Card will equal the Available Funds remaining on the lost, damaged or stolen Card at the time we issue the replacement Card.


We will not share information we collect with respect to Card purchases except as needed to complete the transactions or to comply with laws or government agency or court orders.


The Available Funds on your Card will never expire. The “valid thru” date shown on the front of your Card is not an expiration date, but is for fraud protection. After the “valid thru” date, your Available Funds will be temporarily unavailable until you contact Customer Service for a free replacement Card with a new “valid thru” date. You will need to provide Customer Service with the Card number to receive your replacement Card.


Visit or call 1-866-522-7026 if you have any questions about your Card and its use or to order a replacement Card.


We are not responsible or liable to you if any Merchant refuses to honor the Card.


From time to time the Card service may be unavailable and you will not be able to use your card or obtain information regarding it. Please notify us if you have any problems using your Card. You agree that we are not responsible for any interruption of service.


We may change the terms of Agreement at any time without giving you notice, subject to applicable law. See for the most recent version of the Agreement. In addition, we may suspend, cancel, add, modify or delete any feature offered in connection with your Card at our sole discretion at any time without giving you notice, subject to applicable law. If we cancel your Card, any Available Funds remaining on the Card upon such cancellation, after payment of all applicable fees, will be returned to you.


We may assign this Agreement to a third party at any time without notice to you. In the event we reimburse you for a lost or stolen Card, or if we otherwise provide you with a credit or payment for any transaction made with the Card, you are automatically deemed to assign and transfer to us any rights and claims, excluding tort claims, that you have, had or may have against any third party for an amount equal to the amount we have paid to you or credited to your Card. Neither our failure to exercise any of our rights under this Agreement, nor our delay in enforcing or exercising any of our rights, shall constitute a waiver of such rights. Furthermore, if we waive any right under this Agreement on one occasion, such waiver shall not operate as a waiver as to any other occasion.


This agreement is governed exclusively by the laws of the State of Delaware.


You agree that we have no liability with respect to any merchandise or services you purchase, or for any direct, indirect or consequential damages with respect to your use of the Card.


If a dispute arises between you and us, either may choose to resolve the dispute by binding arbitration, as described below, instead of in court. Any claim (except for a claim challenging the validity or enforceability of this arbitration agreement, including the Class Action Waiver) may be resolved by binding arbitration if either side requests it. This includes claims and disputes relating to any other account or agreement you have or had with us. THIS MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION, NEITHER PARTY SHALL HAVE THE RIGHT TO LITIGATE SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL. ALSO, DISCOVERY AND APPEAL RIGHTS ARE LIMITED IN ARBITRATION.

ARBITRATION MUST BE ON AN INDIVIDUAL BASIS. NEITHER YOU NOR WE MAY JOIN OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR AGAINST OTHER CARDHOLDERS, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE ATTORNEY GENERAL CAPACITY. Only a court, and not an arbitrator, shall determine the validity and effect of the Class Action Waiver. Even if all parties have opted to litigate a claim in court, you or we may elect arbitration with respect to any claim made by a new party or any new claims later asserted in that lawsuit..

We will not choose to arbitrate any claim you bring in small claims court. However, if such a claim is transferred, removed or appealed to a different court, we may then choose to arbitrate. .

This arbitration agreement is governed by the Federal Arbitration Act (FAA). Arbitration must proceed only with the American Arbitration Association (AAA) or JAMS. The rules for the arbitration will be those in this arbitration agreement and the procedures of the chosen arbitration organization, but the rules in this arbitration agreement will be followed if there is disagreement between the agreement and the organization’s procedures. If the organization’s procedures change after the claim is filed, the procedures in effect when the claim was filed will apply. For a copy of each organization’s procedures, to file a claim or for other information, please contact AAA at 335 Madison Avenue, Floor 10, New York, NY 10017-5905, (phone 1-800-778-7879) or JAMS at 620 Eighth Ave., Floor 34, New York, NY 10018, (phone 1-800-352-5267). If both AAA and JAMS are completely unavailable, and if you and we cannot agree on a substitute, then either you or we may request that a court appoint a substitute.

If you wish to begin an arbitration against us but you cannot afford to pay the organization’s or arbitrator’s costs, we will pay those costs if you ask us in writing. Any request like this should be sent to Discover, PO Box 30421, Salt Lake City, UT 84130-0421. If you lose the arbitration, the arbitrator will decide whether you must reimburse us for money we advanced for you for the arbitration. If you win the arbitration, we will not ask for reimbursement of money we advanced. Additionally, if you win the arbitration, the arbitrator may decide that you are entitled to be reimbursed your reasonable attorneys’ fees and costs (if actually paid by you).

Arbitration hearings will take place in the federal judicial district where you live. A single arbitrator will be appointed. The arbitrator must: (a) follow applicable substantive law, except when contradicted by the FAA, (b) follow applicable statutes of limitations, (c) honor valid claims of privilege, and (d) issue a written decision, including the reasons for the decision. The arbitrator’s decision will be final and binding except for any review allowed by the FAA. However, if more than $100,000 was genuinely in dispute, then either you or we may choose to appeal to a new panel of three arbitrators. The appellate panel is completely free to accept or reject the entire original award or any part of it. The appeal must be filed with the arbitration organization not later than 30 days after the original award issues. The appealing party pays all appellate costs. The appellate panel may order that the loser of the appeal pay the winner’s costs and attorneys’ fees. Any arbitration award may be enforced (such as through a judgment) in any court with jurisdiction.

In addition to you and us, the rights and duties described in this arbitration agreement apply to our affiliates and our and their officers, directors and employees; any third party co-defendant of a claim subject to this arbitration agreement; and all authorized users of your Card.

This arbitration provision shall survive (a) expiration of your Card, (b) any legal proceedings to collect money you owe, (c) any bankruptcy by you, and (d) any assignment by us of this Agreement.

You may reject this Arbitration of Disputes section but only if we receive a written notice of rejection from you within 30 days of your receipt of the Card. You must send the notice of rejection to Discover, PO Box 30938, Salt Lake City, UT 84130-0938. Your rejection notice must include your name, address, phone number, Card number and personal signature. No one else may sign the rejection notice for you. Your rejection notice also must not be sent with any other correspondence. However, if you previously had the chance to reject an arbitration agreement with us but did not, you may not reject it now. Rejection of arbitration will not affect your other rights or responsibilities under this Agreement or your obligation to arbitrate disputes under any other agreement or account as to which you and we have agreed to arbitrate disputes. If you once sent us a rejection notice on a different account, card or agreement, you must send us a new rejection notice or else this arbitration agreement will apply to any disputes with us relating to your other accounts, cards and agreements.

©2013 Discover Bank, Member FDIC


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