Consumers warned of the dangers of buying gift cards ahead of Christmas

THEY’RE a quick and easy Christmas present. But shoppers buying gift cards are being warned to read the small print to avoid getting stung.

SHOPPERS buying one of the most popular gifts in the lead-up to Christmas — gift cards — are being warned of the dangers that can result in unsuspecting customers being stung by sneaky terms and conditions.

New analysis has revealed some retailers are offering gift card validity terms with periods as short as three months — and customers are even being hit by postal delivery charges and conditions that prevents them from using the gift card online.

Christmas shoppers should read the terms and conditions before buying gift cards.

But under new reforms in NSW all gift cards sold will have to be valid for a minimum terms of three years — but the catch is the date for when this is to become effective has not been set which means retailers can still sell cards with short time frames ahead of Christmas.

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The other states have failed to follow suit on changing the legislation to allow for longer card expiry terms.

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Data from financial comparison website RateCity has shown Australians spend about $1.5-$2.5 billion on gift cards annually, but the site’s spokeswoman Sally Tindall there are many nasty traps to watch for.

RateCity spokeswoman Sally Tindall said gift cards can be a waste of money if consumers don’t pay close attention to the fine print.

“You need to spend a couple of minutes checking out a few bits of the fine print, particularly the expiry date because there’s no point giving a gift that expires in just three months time,’’ she said.

“Also look if there’s fees attached, there’s no reason there should be fees attached to a gift card particularly if it’s money with the one store and make sure you’re not stung for postage.”

Some retailers requires customers to use the full value of their gift card in one transaction or even get hit with activation fees to use the card.

The Australian Retailers Association’s executive director Russell Zimmerman urged customers to “use a gift card as quickly as possible irrespective of the expiry date on it.”

“If you put it in the bottom drawer you will probably forget about it,’’ he said.

Choice spokesman Tom Godfrey warned consumers gift cards often come with “onerous terms” so it’s critical customers pay attention to the terms and conditions.

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