Who doesn’t love a gift card? They’re an excellent option to give a loved one or family member the satisfaction of choosing the exact present they’d like, as well as cutting down on the unnecessary presents. This is why it’s not surprising that more than 80% of gift-givers purchased them during Christmas. However, with so many retail stores closing in the past couple of years, and the country currently in recession, with the possibility of further closures, are they still safe?
Gail Cohen, director general of Gail Cohen, director general of Gift Card and Voucher Association (GCVA) says: ‘This year, we’re able to see that more and more people are using gift cards, this time to limit the cost of their purchases and avoid unwanted gifts during the current crisis in cost of living. Gift cards help people stay within a set budget and avoid price inflation for physical gifts, which is a major reason for the 44 percent of those who plan to cut their spending for the holidays.’
The GCVA study shows that 88% of UK adults would love to receive a gift card this Christmas. 23% of people plan to buy more presents this holiday season in order to reduce costs.
‘When it comes to using credit cards for gifts, our recommendation for consumers is always to use them as quickly as possible. They’re not a gift for the bottom drawer and can be a perfect way to treat yourself in the new year” says Gail.
But, one of the major drawbacks with gift cards is that they are usually worthless if the merchant fails before you’ve had time to make use of it. It is recommended to use it as fast as possible. Helen Dewdney, founder of consumer rights service The Complaining Cow says: ‘Many have a limited time period on them. Also, you must spend it! This is especially important when there are many retailers going into liquidation. If a company goes through liquidation not go through liquidation, it’s highly unlikely that you will be able to use the gift card. The administration will decide. However, it is better just spending it.’
Dean Dunham consumer lawyer says”Shop with confidence this Christmas and pay with credit cards… If you purchase an gift card, make sure you purchase one that you can use by multiple retailers.’
We’ve compiled a guide for buying and using gift cards to ensure that your purchase is protected and the recipient can use their gift without any hassle.
DO: Pay with credit card.
If you’re purchasing gift cards with the value of over $100, make the purchase using a credit card. If the store you purchased the gift card from goes bankrupt and your credit card company goes under, you’ll be jointly liable for your purchase as per Section 75(1) of the Consumer Credit Act, which means you’ll have a better chance of getting your refund.
If you bought an online gift card from an online retailer, but later went bankrupt using your debit card If you are unable to make contact with your bank to make an appeal after 120 days.
Don’t forget to conduct your research
The person who has a regular visit to the same cafe near work, or the aunt who goes to a nearby garden centre every week may want a gift card from that business. Before you purchase a gift card make sure you do a quick internet search and be on the lookout for news to check there are no imminent signs that the company is in difficulty.
DO: purchase gift cards that are able to be used on the internet.
To simplify the life of the recipient, select the gift card that can be used in stores as well as online. Many gift cards come with this feature nowadays, however it’s still crucial to review on the specifics and rules -you don’t want give your friend a gift card only to find you have to travel 20 miles to get it.
DO NOT: limit your spending to a single store
Why should you give someone a single alternative when you can gift them several options? A gift card that can be used across many stores means that even if businesses are in administration, your loved one is still able to get an item they cherish. This is also a handy present if you don’t have a good relationship with the person.
One4all vouchers can be used online or at thousands of retailers, restaurants, charitable organizations and even pet shops. They also provide themed gift cards , such as favorites of gamers, beauty & spa favourites and teens’ favourites which can be purchased at shops that appeal to these groups.
National Book Tokens are valid at bookshops throughout the UK which includes Waterstones. It is possible to send an electronic gift card if you’re shopping last minute! This is the same for National Garden Gift Vouchers, that are available in garden centers across the country , and are also available to send by evouchers.
Do Look outside the box
Giving cash as a gift is a secure choice. If you’re buying to give to a child or teenager you should ask the parents whether they have an ISA Junior. Anyone can make a payment into an ISA and all you require is the account information. Plus, they’ll thank you for investing in their future!
Tip: It’s easy for gifts that whizz straight into an account to get forgotten about on the big day, give the recipient/parent/guardian an eye-catching card with the details of your gift in.
If you wish to know what gift card has the highest rate, visit this website…
Do not ignore dates for expiry
The duration of a gift card can vary greatly. Find out if it’s on a specific date or three months or a year plus when you purchase. It’s a good idea to inform your gift recipient how long they’ve got to shop. Ireland have established a 5-year minimum expiry date on all vouchers sold following December 2, 2019. However, for those who reside living in the UK, you’ll have be aware of the time your recipient will need to wait to avoid your present ending up in the garbage.
In the event that the coupon is for an experience, make sure to check whether you’re required to book before the expiry date or actually use the experience. It’s also worth checking whether you are able to extend the validity of the voucher if you’re required to (this could result in a small cost). Use Resolver to contact the retailer. Although they’re not obliged to extend the life of your gift card or voucher the option is available as a gesture of goodwill.
Some gift cards come with no expiration date: the Apple Store, Disney and Starbucks are just a few the retailers that give this flexibility.
DO: gift an experience
For some , memories are more valuable than an thing, so why don’t you present them with an unforgettable experience. Be sure to verify that the nearest opportunity for them to use the voucher isn’t too far from where they live.
Virgin Experience Days offer a range of activities from after-dinner tea in Fortnum & Mason to online experiences like Photoshop or cooking courses. The person who is given the voucher can make it active online and then book the time and date they prefer. Most vouchers will last for a year and must be used within this time.
Buyagift also offer experience vouchers for a stay at a hotel for two nights escape or an unforgettable driving experience in a car. There are days out available all over The UK and the person who receives them can normally choose the place they want to visit. There are gift vouchers to fit every budget, from $10 cash off to vouchers that include gift experience packages up $250. These can be sent in the post or emailed directly to an email address.
Theatre Tokens can be used in over 270 theatres throughout the nation, including in the West end. They do not have an expiry date.
Tips: If you’ve wanted a physical gift voucher or gift card to be delivered through the post, bear in mind the strike dates and factor these into. Keep track of the Royal Mail updates.
What happens if the retailer goes bust?
Anyone who has an account with that retailer will be considered a credit and will need to make a claim in writing to the administrators. ‘You’ll then be placed on a list alongside other creditor. However, you will be placed at the bottom of your list of creditors – it’s fairly unlikely you’ll get your money back according to Resolver the consumer complaints site.
It’s worth checking if there’s still time to use your card because sometimes the card’s administrators ensure that gift cards or vouchers are accepted. Similarly, if the retailer is being purchased by a third party company, it might be able to honor current present holders of gift cards.
