Wallet Inactivity Fee

A wallet inactivity fee is a periodic charge that a wallet, prepaid card or e-money provider deducts from a customer's balance when the account has not been used for a defined period. Providers say it covers the cost of keeping unused accounts open. It is closely related to a dormancy fee and is usually triggered by wallet dormancy. Consumer protection law often limits these fees. In the United States, the gift card provisions of Regulation E allow an inactivity fee on gift cards only after at least 12 months without activity, no more than one fee per month, and with clear disclosure. EU and UK e-money rules restrict charges on redemption. Fees must be set out in the terms, and consumer groups have long criticised their use to erode small balances on prepaid cards without warning customers.