How To Protect Yourself When Buying Gift Cards
I remember as a kid I’d get a lot of gift cards, mainly for book shops. And that continues to this day. But since the start of the pandemic more than 8,700 chain stores have closed across the high street according to the Local Data Company. And with retail giants like Topshop and Debenhams going bust in 2020 gift cards can be a bit of a worry.
Personally I am a big fan of gift cards. They allow me to treat myself without the worry that I’ll just spend it on my weekly shop or everyday spending like I would with cash. Personal favourites of mine to get are book/ Waterstones gift cards, or anything home related such as John Lewis, Dunelm or Ikea.
If you are buying gift cards there are ways to keep your purchase protected, and ensure that the recipient can use it with minimal hassle.
Pay by credit card
If you’re buying a gift card over the value of £100 then pay for the purchase with your credit card. If he retailer goes bankrupt then your card provider will be jointly liable for your purchase under Section 75 of the Consumer Credit Act. This means you’ll have a much better chance of getting your money back.
Buy gift cards that can be used online
With some retailers closing physical stores, or have fewer to choose from make sure the card can be used online. This will avoid the recipient having to travel miles away. Plus so many of us will choose to buy online from retailers now anyway. Especially as there’s usually more choice online.
Don’t limit spending to a single store
To avoid the potential issue of stores going out of business go for a card like One4all or LoveToShop which can be used at multiple stores. This usually includes restaurants, so they can choose to pay for a nice meal out as well.
This also means the recipient can choose exactly where they want to spend the vouchers, or split it across a few different stores. Plus it’s handy if you don’t know the person as well.
Look at gift cards expiry dates
It’s important to keep an eye on the expiry dates for gift cards, regardless of whether they go out of business or not. According to Consumer Reports, over a quarter of all gift cards are never used which is lots of wasted money. Ireland have introduced a 5-year minimum expiry date for all vouchers sold after December 2nd 2019. But the UK doesn’t have the same rule.
There are some gift cards that have no expiry date such as Disney, the Apple Store, Starbucks and TK Maxx. But not all retailers off that much freedom.
Gift an experience voucher
I love giving experience vouchers as it offers people something to look forward to, and a memory they can make. Buyagift and Red Letter Days are my favourite places to choose from as you can get vouchers for specific activities, or SmartBoxes where you can choose from hundreds of different activities. From meals out and spa breaks, to hotel stays and adrenaline fuelled activities.
The recipient can choose the location of the activity they do. So it could be incorporated into a staycation or trip away. For example I got a lovely spa experience package for my birthday last year and me and Luke used it during a stay in Bath later that year.
Do you like buying gift cards?
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17 responses to “How To Protect Yourself When Buying Gift Cards”
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Rhian Westbury
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I buy gift cards quite a lot and had never thought about this before, certainly something to think about next time I am looking at gift cards
It’s so important to make sure you’re covered as so many stores have closed with little warning x
I don’t really buy gift cards to be honest. I did received one which I am still yet to use, but I like that I can use it at any store, and I am not tied to one place only.
I tend to stick with experience vouchers and things like that instead of gift cards, but you need to remember to use them x
Wow, who knew. Great tips. I particulary like the advice to use the credit card for gift cards over a certain value. Feels great that there is a law that protects you where this is concerned.
I like to use credit cards for any large purchases just to be on the safe side x
I think most gift cards have long expiry dates but it’s best to check and not assume. I tend to stick with companies I know and trust. Both Buyagift and Red Letter Days have always been good for me.
I love buyagift and red letter days because you can always extend them so easily as well x
This is some really useful info. I’d never actually considered how this could have an impact so am going to bear this in mind next time I buy a gift card.
These are great ideas and with me buying more gift cards as gifts for my family, I will be following some of the tips here to protect myself
I never thought about this before now but you’re absolutely right, there is a lot of risks involved in gift cards.
Great tips actually. I’ve not thought of this before but it’s good to be aware of this next time I buy gift cards!
Lately everyone’s using the “pandemic” to wiggle out of their end of the deal but these are some great tips to keep in mind while buying gift vouchers. Thanks for sharing! 🙂
Yep so true x
I don’t tend to buy gift cards as I think they get a bad reputation for not being used, that doesn’t mean that I don’t enjoy receiving them though!
Yeah I tend to try and spend mine quite quickly just because I know I’ll forget about them otherwise x
We often buy gift cards as it means the recipient can usually choose what they want or find it incredibly useful. These are great tips on how to protect yourself when buying them.