Gift vouchers

Gift vouchers are a great way of buying just what you want. But don't let them linger too long in your wallet, or under a magnet on the fridge - you could lose out. Here's what you should be aware of.

Gift vouchers are not the same as cash

Rather, they represent goods to the face value of the voucher. So traders don't have to give change if you choose goods less than the voucher's value, unless the voucher says that change will be given.

If you lose the voucher, it's just like losing a bus ticket

The only exception may be if the voucher is made out to you personally, 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 and issue another one.

Gift vouchers may have an expiry date

If they do, the trader has no obligation to accept it beyond this date - or to refund the voucher. But the expiry date must be marked on the voucher.

The owner of the business may change

This too can mean unused vouchers are worthless. The new owners would be bound to honour them only if they had purchased the previous owner's liabilities, which doesn't happen often.

The trader might go bust

Again, unused vouchers are probably useless when this happens, but get yourself listed as an unsecured creditor with the receiver. There's a chance you may get something.

Security is sometimes possible

Giving a voucher? Read the terms to make sure they are acceptable, and buy one which is secure, if you can. Some trade associations have trust funds to keep voucher money separate. This means voucher holders would get their money back if the company folded.

If you have a problem with your voucher, discuss it with the trader. Some traders are more flexible than others and may be willing to renegotiate the terms. We have heard of expiry dates being extended and change being given.

Electronic vouchers

Some stores offer vouchers that look like credit cards and can be loaded with specific amounts. Check the term and conditions of these cards very carefully. It can cost you money to check your balance. Fees are sometimes charged and sometimes the card can be cancelled by the store.