The dangers of buying gift cards at Christmas

It’s a popular choice for a Christmas present but there are some things you should look out for when buying gift cards.

LAST-minute shoppers have little time to left to buy presents and many will be grabbing gift cards in a mad rush to fill bare Christmas stockings.

While it’s often the easy option it can result in money going down the drain if these cards are thrown in a drawer or even lost.

The gift card industry is a billion-dollar industry and it’s any wonder, it’s money for jam.

Research from financial comparison site finder.com.au found in 2017 Australians wasted $70 million in unredeemed gift cards.

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Earlier this year South Australia and NSW both changed legislation that extended minimum gift card expiry dates from 12 months to three years.

It’s a great move and gives shoppers who buy cards in these states a longer time frame to redeem them.

But when you step back, the gift card industry really is a dog’s breakfast.

Other states have not followed suit in adopting these three year minimum expiry terms making it confusing for consumers.

The Australian Retailers Association has called for uniform legislation but until then consumers need to make sure they redeem these cards or risk letting money go down the drain.

Customers need to redeem their gift cards before they forget about them or lose them.

Some of the nation’s biggest retailers including Woolworths, Bunnings, JB Hi-Fi and Good Guys took charge and ditched expiry dates altogether.

While others have extended their expiry periods and some have even left them as is.

Gift cards can be a pot of gold for retailers if customers buy them and never get off their backside and use them.

Earlier this year I was given a Coles gift card and was stung by a $4 charge when I phoned up to speak to the call centre and inquire about the card.

I was unsure of the balance on the card and when I asked for this information I was told I would have to pay another 50 cents.

I couldn’t believe they were seriously going to ping me for asking a few simple questions.

As a result I lost $5 off the balance before I even swiped left or right on the gift card.

It was only after I did a story on these outrageous fees were quietly removed.

A win for consumers.

This is why gift cards get a bad rap.

They have some nasty terms and conditions so make sure you read the fine print before you buy them or go to use them.

Some cards even prevent you from redeeming them online.

So if you are one of those people who have left your gift buying until the last minute make sure you understand what you are getting yourself in for before snapping up a gift card.

As for those who are fortunate even to get handed gift cards this Christmas, don’t be a sucker. Use them up before you lose them or forget you even got one.

Merry Christmas!

@sophieelsworth

Originally published as The dangers of buying gift cards at Christmas