CHRISTMAS is a time when many of us buy gift vouchers as a present for friends and family.
There are many benefits to gift vouchers but there are also some risks, for example, if you lose the voucher, it expires before you use it, or if you’re unable to spend the remaining balance. It is important you know the conditions and rules that apply before buying a gift voucher.
The following are some common queries that the Citizens Information Service receive in relation to gift vouchers:
What is a gift voucher?
Gift vouchers are any voucher, coupon or other document (including an electronic document) that can be used instead of money to pay (or pay in part) for goods and services. Gift vouchers come in different forms, such as paper gift certificates, electronic cards or gift cards. They can be issued by a single business or for a group of shops (such as a shopping centre).
When you buy a gift voucher, you enter into a contract with the trader. The voucher is like cash that you hand over in exchange for goods and services.
What are the current rules that apply to Gift vouchers?
Gift vouchers sold after December 2nd 2019 must have no expiry date or be valid for at least five years.
The seller cannot force you to use the entire gift voucher in one go or charge a fee for changing the name on a gift voucher (if name registration is required)
If there is more than €1 left on your gift voucher after a purchase, the seller must refund you the balance. They can do this with cash, transfer it electronically to your bank or by giving you another gift voucher.
Are there any exceptions to the rules?
The rules do not cover vouchers that:
• Can only be used to buy goods and services at a discounted price, from a specific seller on a set date, or for 3 months or less (such as deal websites like Groupon or Pigsback)
• Are part of a customer loyalty or promotion scheme
• You got as a refund for returned goods
• Were sold before December 2nd, 2019 - the original expiry date and terms still apply to these vouchers
What is an electronic money gift card?
In general, electronic money gift cards (for example, One4all gift cards), are cards that can be used in a number of different shops.
The following rules apply to electronic money gift cards:
• Before you buy the card, you must be told about the conditions for using the e-money card, including any fees
• Fees must be proportionate and in line with the costs actually incurred by the business who issues the card to you
Is there an expiry dates on gift vouchers?
There is a 5-year minimum expiry date for all vouchers sold after December 2nd 2019.
Gift vouchers must either:
• Have no expiry date, or
• Must be valid for at least five years from the date the gift voucher is issued.
You must be given details of the expiry date in a durable format (for example, on paper or by email) at the time you buy the gift voucher.
What are my rights if I still have a voucher bought before December 2nd, 2019?
You should have been told the expiry date when you bought the voucher. Expiry information can be on the voucher, the packaging, the website or the shop policy.
Some sellers can be flexible if your voucher has expired.but they are not legally obliged to extend it and may charge a fee.
What are my rights if I lose a gift voucher?
Gift vouchers are like cash, so if you lose it, the seller does not have to replace it.
If a voucher was made out to you personally and is not transferable, you might get a replacement. This depends on the voucher’s terms and conditions and the company’s policy.
For lost cards, you may have the option to get a replacement card but you need to check with the seller. You could be charged a fee for the replacement card.
What happens if a trader goes out of business?
If a company goes out of business before you use the voucher, you may have difficulty getting your money back.
Usually, the seller will owe money to several people so your claim is just one of many. There are rules for the priority to be given to the various debts owed in the case of the business going into liquidation or receivership. Generally, you will be low in the order of priority.
You will need to make a claim in writing to the appointed administrator or liquidator (if applicable) providing proof of your voucher. However, it is unlikely your voucher will be honoured. If a new owner takes over, they do not have to honour your voucher.
For this reason, you should buy gift vouchers using a credit or debit card, as you may be able to use chargeback through your bank or credit card provider.
The Competition and Consumer Protection Commission (CCPC) has more information on companies going out of business on
www.ccpc.ie
Where can I get more help?
If a trader refuses to honour a gift card, first try to settle the dispute directly with the trader.
If you cannot resolve the dispute, contact your local Citizens Information Service and they will advise you about your options for redress.
The Competition and Consumer Protection Commission also has information on their website: www.ccpc.ie. Their helpline number is 01 402 5555
