Buying a gift card? Here’s why you should read the fine print ...

Consumers are being warned to check the fine print before buying gift cards this Christmas as some could be “more of a gift to retailers” than anyone else.

Consumer NZ estimated New Zealanders threw away $10 million in unused gift-card credit each year while retailers continued to benefit from what the watchdog said were unfair expiry dates.

Consumer NZ head of research and advocacy Gemma Rasmussen said some gift cards and vouchers had very short windows for redemption.

“Based on the complaints we’ve received over the years, gift cards seem to act more like a gift to retailers than to ourselves or others,” she said.

When a shopper bought a gift card, the retailer received payment in advance and the prospect of further sales when the card was used. They would also keep any remaining money when the card expired, which happened in a quarter of cases.

“One in four gift cardholders end up stuck with a card they can't use because either the card has expired or the retailer’s gone bust. And more than half of cardholders unable to redeem their voucher still had more than $20 unspent,” Rasmussen said.

Gift cards could also be difficult to use, with half of people surveyed reporting problems, including trouble checking their balance and being able to use their card only at limited stores.

“We don’t think it's fair that retailers can pocket your money without providing something in return. We have been calling for gift cards to be valid for a minimum of five years, which aligns with what shoppers in the US are entitled to.

“Unless the retailer offers a fair redemption period, we recommend gifting cash. Not only is it nostalgic, there are no strings attached.”

Consumer NZ encouraged shoppers considering giving gift vouchers this year to buy from the retailers on its “nice” list, which offered a five-year redemption period or had dropped expiry dates altogether.