Gift vouchers: Money for nothing or your gifts for free

December 12, 2024

Got any gift vouchers gathering dust at the back of a drawer?

Make a point of pulling them out and spending them this Christmas. Why? Our research shows that 55% of people have had a negative experience with a gift voucher or card, and the biggest problem was the vouchers expiring before they could be used. Some gift cards even incur fees after a certain period, which can reduce their value.

If your gift voucher expires, this means that whoever bought it for you spent their money for nothing.

Not sure what to spend them on? It’s Christmas – why not use them to buy presents? Get your gifts for free this Christmas by using the gift vouchers you already have.

Here are some other things to remember about gift vouchers this Christmas.

Types of gift vouchers

Gift voucher (or gift card) laws were introduced at the end of 2019. The new rules state that vouchers must have a minimum expiry of five years. You don’t have to spend the whole voucher in one go. And you can use multiple vouchers to pay for one gift (if they are for the same shop of course).

Some types of vouchers aren’t covered by the rules, including:

• Gift vouchers that can be used in more than one shopping centre
• Money cards, like pre-paid credit cards
• One4All cards and other vouchers that can be used in a wide range of shops
• Discounted deal vouchers that must be used on a specified item or service, and used on a specific date or within three months
• Credit notes you got in exchange for bringing something back to the shop
• Vouchers you got under a customer loyalty scheme

Gift voucher fees

With some gift cards, if you don’t use it within a certain time, you may be charged fees. These fees are deducted from the balance of the voucher, so you might find that when you try to use it, the balance is far less than you expected.

These fees are part of the terms and conditions of the gift voucher, so read those carefully.

Expiry dates

Businesses are not allowed to issue gift vouchers with an expiry of less than five years, unless the voucher is in one of the excluded categories listed above.

If there is no expiry date written on the card or voucher itself, the business must inform you of the expiry date in writing or by email.

Remember, if you got a gift voucher in or after December 2019, it is fast approaching five years since you got it. It may be about to expire, so make sure you don’t miss out.

What happens if the business closes?

The best reason for spending a gift voucher sooner rather than later, is that you are unlikely to get the money back if the business closes. In our survey, 17% of the people we asked said they couldn’t use a voucher because the business had closed down.

The business may close with lots of debts, and certain debts are prioritised above the money they owe you. For example, money owed to Revenue and staff wages must be paid before other debts are considered. There simply may not be enough money left to pay back customers.

If you used a credit or debit card to buy the gift voucher, ask your bank about a chargeback. Time limits apply, so contact your bank as soon as you can.

What about lost cards?

If you’ve sifted through the sock drawers and pulled out the fridge, and you’re sure that it wasn’t an electronic voucher that’s somewhere in your inbox, you might have to admit your voucher is lost.

You’re not alone – 25% of the people we asked said that they had lost a gift voucher.

You can always try to talk it over with the business, but losing a voucher is the same as losing cash.

Do I have to spend the card in one go?

You don’t have to spend it all in one go, and the business should refund the balance. They can do this with cash, electronic transfer or give you another voucher.

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