Gift Cards – There are some important things to know when buying or using a gift card

Gift cards can be a great option for hard-to-buy-for friends and relatives (and for last-minute gifts for anyone you may have forgotten).

There are some important things to think about when buying a gift card though:

  • Can the gift card be used both online and instore?
  • Can it only be used in one particular store?
  • Are there limits on what it can be used to buy?
  • If it is a shopping centre gift card, can it be used in any store in the centre or only a selection of participating stores?

Your rights when it comes to gift cards

Except for a few limited-use gift cards and vouchers, all gift cards automatically come with a minimum three-year expiry period, with the expiry date clearly marked on the card. Even if traders state an earlier expiry date, it will be invalid, and you will be entitled to the mandatory three-year period.

It is illegal for traders to charge post-purchase fees or administration charges that reduce the value of your gift card, such as activation, account keeping and balance enquiry fees.

Traders are, however, able to charge fees they would normally charge as part of a transaction, such as overseas transaction fees, booking fees, or fees charged to replace a lost, stolen or damaged card. They will also be able to charge an upfront fee for the purchase of the gift card. Whether you choose to accept that fee and proceed with the purchase will be up to you.

There are some exceptions to these rules, such as cards sold for a good or service at a genuine discount and cards or vouchers given to customers as part of a limited promotion.

Things to remember

Treat gift cards like cash.  While some traders will replace lost gift cards some won’t.  Don’t take a risk with yours and keep them safe.

If a business changes ownership, or goes into administration, receivership or liquidation, they may not honour your gift card. Given the current pressures on business, it may be best to use any gift cards you receive sooner rather than later.

For more information, including a full list of exceptions, visit the Australian Consumer Law website.

*This information has been provided by the Office for Fair Trading

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