Gift cards and vouchers – your consumer rights

Your consumer rights

Businesses must clearly state all conditions and restrictions on how you can use gift cards and discount vouchers.

Under Australian Consumer Law, businesses must outline:

• the conditions of gift card or voucher use, along with any restrictions
• the expiry date, including the activation expiry date if the card needs to be activated before use
• any limitation on the number of transactions
• whether or not the card can be topped up or reloaded with value.

How gift cards work

A gift card or voucher is a card loaded with an amount of cash that lets you, or the person you give it to, pay for goods and services.

Gift cards usually can’t be exchanged for cash.

New South Wales laws

Most gift cards and vouchers sold in NSW must also come with:

• a minimum expiry period of 3 years
• no fees charged after your purchase, excluding some processing of payment fees such as overseas transaction fees or booking fees.

Exceptions to the rules

There are some exceptions, the main ones are if a gift card or voucher is:

• given by a business for free, as part of a rewards program, or as a bonus when buying something
• a prepaid card for phone or internet access, and ATM, debit, credit or charge cards
• exchanged for goods returned to the supplier
• sold for a particular good/service that is below the market value of that good/service (a genuine discount)
• sold or donated for use in a fundraising appeal, including to a charity or not-for-profit organisation
• able to be topped-up or re-loaded.

Expiry dates on gift cards

Under Australian Consumer Lawn, gift cards must prominently display the expiry date. This can either be the full date, or as a period of time.

If the expiry date is shown as a period of time, the card or voucher must also include the date it was supplied to the customer, so you can work out the expiry date.

For example: 'Gift cards expire 4 years from the issue date. Date of issue: March 2020.’

If there is no expiry date, this must be stated on the gift card.

This display requirement does not apply to gift cards that are supplied:

• secondhand
• to certain charities and government agencies.

Find more information on the national gift card laws is available on the Consumer Law website.

Gift card refunds and cancellations

Like most contracts, you might not be able to get a refund if you change your mind.

However, you may receive reimbursement if the business:

• misrepresented the voucher or
• did not disclose conditions at the time of sale.

Gift cards or vouchers may be subject to a cooling-off period under Australian Consumer Law if you bought them:

• over the phone
• through a door-to-door salesperson
• through another unsolicited consumer agreement, where the supplier or salesperson approaches or contacts you without you inviting them.

Discount voucher schemes

Discount voucher schemes are when you buy a card or book of vouchers for a small fee to ‘unlock’ discounts and other offers for goods and services at participating businesses.

It’s advertised that you’ll save money with the vouchers, even after paying a small fee for the scheme.

The amount you save will depend on how many of the discounts you use. This can be affected by several factors including:

• the location of participating businesses
• conditions on usage
• discounts may only be provided in conjunction with the purchase of another product or service at the full price
• the participating business closes or changes owners.

What to watch out for

Some discount schemes are part of a larger sales recruitment scheme. You should be wary in case they breach the pyramid sales provisions of the Fair Trading Act 1987.

Tips for buying and using gift cards and vouchers

• Check the expiry date when you receive a gift card. If it's not printed on the card, ask the sales attendant to write it on there.
• Keep the receipt.
• Use the total amount. Aim to use the total value of the card by the expiry date because the remaining amount is usually not refundable. You can check the terms and conditions on the issuer's website or on the back of the card.
• Treat gift cards like cash. If you lose it or it is stolen, in most cases you will not be able to replace it. However, some retailers may replace the gift card if you have the receipt and they can check it hasn’t been redeemed.
• Getting 'change' may depend on the terms and conditions. If the terms and conditions do not state a cash back option for your change, the retailer can insist on leaving the remaining credit on the gift card or giving you a credit note instead.
• Always read the terms and conditions before you buy into a discount voucher scheme. Review the discounts offered, you may only be able to get the discount if you buy:
  • from a specified business or location
  • another product/service from the business
  • at certain times or on certain days
  • before the offer expires or stock runs out.

Resolving issues

If you have a problem with gift cards or vouchers, discuss the matter with the business from where you purchased the item.