MAKE GIFT CARDS PAY
ANYONE who received a gift card for Christmas should use it promptly, otherwise it may become worthless. About £300 million a year remains unspent on such cards, according to industry trade body the UK Gift Card & Voucher Association. This is because despite the generosity of family and friends who have sent them as gifts, as many as ten per cent of cards expire, are forgotten about – or simply lost.
While gift cards given as festive presents are still at the front of our minds now is the ideal time to use them. Otherwise, many cards will get tucked into the back of a kitchen cupboard drawer and forgotten about until rediscovered – only for the expiry date to have passed.
There is also a chance that if you leave it too long, a voucher will get lost down the back of a sofa and never seen again.
Hannah Maundrell, of comparison website Money.co.uk, says: ‘It is crazy how many gift cards go unused. They might seem like a great present for someone at the time, but actually they are a pretty poor gift. You are much better off giving cash.’
She adds: ‘Check the small print at the back of the card and see how long you have got to use it.
‘These cards are actually a contract between the person who bought them for you and the retailer. The best advice is to spend them immediately. With January sales it is an ideal time to bag a bargain.’
It is not just apathy that is to blame for us wasting money on gift cards but also confusion. Expiry dates can vary from ten months to a decade.
For example, gift card trader Buyagift only gives you ten months to use its vouchers. It offers a range of special events, everything from spa breaks to skydiving.
But if you fail to book within the tenmonth window, then the only experience you will have is one of disappointment.
National Rail Travel Vouchers, often given by rail companies as compensation for customers who have claimed for delays, are valid for only 12 months. After this they are worthless.
Events organiser Ticketmaster sells cards that can be redeemed at theatre events, sports matches and concerts across Britain – but they also expire after a year.
The most common card expiry period is 24 months but any purchases or balance checks made during this time resets the clock so the full two years starts again. Shops that offer such gift card deals include Marks & Spencer, John Lewis, WH Smith, House of Fraser and Apple iTunes.
Amazon gift cards have a life of ten years. National Book Tokens – bought at bookshops such as Waterstones, WH Smith, Blackwell, Foyles and many independents – should be spent within 24 months of purchase. But it will replace expired gift cards with new ones if you return them in the post.
Gail Cohen, director of trade body UK Gift Card & Voucher Association, says: ‘If you receive a gift card, whether as an online voucher or as a plastic card, you should contact the shop if you are not sure of the expiry date to avoid disappointment. But it is a good idea to go out and enjoy the benefits of the card as soon as possible in the New Year.’
If you use a credit card to buy gift vouchers worth £100 or more then it should at least give you protection under Section 75 of the Consumer Credit Act in the event that the shop you bought the vouchers for collapses before they are used.