When buying a gift, we need to remember that we may be spending money on something that the receiver may either not like or might never use. When faced with such a dilemma, we may decide to opt for a safer choice and go for a gift voucher. But is it really the safest choice?
Even if they do not expire, vouchers should be used as soon as possible
There are, in fact, a number of risks related to the buying and giving vouchers. The shop where the gift voucher is redeemable may close down, and in such a case the receiver of the gift voucher could potentially end up with a worthless gift.
Buyers of gift vouchers are therefore advised to double check the stability of the company issuing the voucher to minimise the risk of losing their money. Another precaution is to ensure that the gift voucher is not left in a drawer for weeks or months before it is used.
Ideally, do not buy gift vouchers that have an expiry date that limits their use. Even if they do not expire, vouchers should be used as soon as possible.
If there is an expiry date on a gift voucher, it is important that this is clearly written down and that it is adhered to by the receiver. Expiry dates on gift vouchers may vary widely.
Some vouchers are only valid for a few months, while others may be used within a year or two. Receivers of gift vouchers should be aware of these deadlines. If asked, some shops are usually willing to extend the use of gift vouchers, but this should be requested before the voucher expires.
Unused vouchers may not only become worthless if the owner of the business changes or closes down, but there is also the risk of losing them. If the latter happens, there is not much the gift receiver or the trader can do.
The only exception would be if the gift voucher is made out in the name of the consumer and is marked ‘not transferable’. This means the trader is likely to have a record of the voucher and may be prepared to cancel the original one and issue another. Hence, the best advice is to always keep gift vouchers in a place where we can remember them or find them easily.
Gift vouchers that are flexible and can be used in various outlets are always a safer choice. Receivers of such vouchers do not only have a wider variety of products to choose from, but there is also a lower risk of ending up with a worthless voucher if an outlet closes down. There are also different ways as to how a voucher can be used. For instance, some vouchers have to be used at one time because no change is given. When this is the case, it is advisable not to spend a large sum of money on one voucher but it is better to buy a number of vouchers carrying different values.
On the other hand, there are vouchers that allow the user of the voucher to spend less with another voucher being issued with the difference in price.
In short, to minimise the risk of wasting hard-earned money on unusable vouchers, we should always: check the terms and conditions, including the expiry date, and check what happens to any unused part and whether it can be used in every outlet if the shop is part of a chain; and buy vouchers that can be used at more than one outlet or chain; moreover, use vouchers as quickly as possible.
If the terms and conditions on a gift voucher are not honoured by the establishment that issued the voucher, the buyers or receivers of vouchers can seek redress by submitting a claim with the Office for Consumer Affairs at the Malta Competition and Consumer Affairs Authority.
However, legally, there is nothing consumers can do once a gift voucher expires or if they want to redeem the voucher for cash. Gift vouchers are not equivalent to cash; they represent goods to the face value of the voucher.
odette.vella@mccaa.org.mt
Ms Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.