The DOS and DON’TS of gift cards

When House of Fraser went into administration last year, there were issues over the company not honouring its gift cards. Although this problem was later resolved, it’s left many of us feeling uncertain about whether gift cards are too much of a risk to give as Christmas presents. Here’s everything you need to know… ✓ PAY BY CREDIT CARD

If you’re buying a gift card for the value of £100 or more, pay on a credit card. If the retailer you buy from goes bankrupt, your card provider will be jointly liable for your purchase under Section 75 of the Consumer Credit Act, so you will have a better chance of getting your money back.

✓ BUY GIFT CARDS THAT CAN BE USED ONLINE

Buying a gift card for a beauty lover? Watch out for the terms and conditions. MAC, Jo Malone and Molton Brown are just a few of the beauty brands that don’t accept gift cards in department store concessions. To avoid travelling to a specific shop, opt for a card that can be used in store and online.

✓ GET CREATIVE

Gifting cash is a safe bet. However, if you’re buying for a child or teenager – and giving money seems too unimaginative – ask their parents if they have a Junior ISA. Anyone can pay into someone else’s Junior ISA; all you need are the details. Plus, they’ll thank you later for investing in their future!

✗ OVERLOOK EXPIRY DATES

It’s a good idea to spend your gift card as quickly as possible in case a retailer goes bust, but also to avoid it expiring. Gift cards from Marks & Spencer and John Lewis & Partners will expire 24 months after purchase or last use. If you can, opt for one with no expiry date: TK Maxx, IKEA and Starbucks are a few of the retailers that offer such freedom.

✗ LIMIT YOUR OPTIONS

If you’re not set on one shop, buy a gift card that can be redeemed at many retailers. That way, your recipient will have plenty of choice. Love2shop and One4all cards can be used in 90 stores.