Consumer Corner: What you need to know about the gift vouchers you got this Christmas

Vouchers can be handy for someone who is difficult to buy for but for others, they could end up sitting in their wallets for years

Grainne Griffin: “If you're planning on gifting a voucher, do consider if giving cash instead might make it easier and quicker for the recipient to find the right gift for them.” Picture: iStock.

Gift vouchers throw up the same questions each year. Are they an extremely useful gift or thoughtless present? 

They can of course be handy for someone who is difficult to buy for but for others, they could end up sitting in their wallets for years. 

Either way, they continue to be a popular Christmas gift and it is very likely that some will have made their way under your tree this festive season. 

Gift vouchers are being used more and more by employers as a way of gifting staff a Christmas bonus. Thanks to the Small Benefit Exemption scheme employers are now allowed to give their employees a non-cash bonus of up to €1,500 tax-free each year.

Gift vouchers sold in Ireland must be valid for at least five years. This law came into force in 2019, which means some of the first vouchers sold under the Act may be expiring soon, so it is important that you check your old vouchers and spend them as soon as possible. 

The law also says you can’t be required to spend the whole voucher in one go, and you can’t be limited to one voucher per transaction.

The Competition and Consumer Protection Commission (CCPC) conducted some research and asked members of the public about gift vouchers. More than half of respondents reported a negative experience with gift cards and vouchers, with 35 percent reporting that a gift card or voucher had expired before they had spent them.

More than a quarter said that they had mislaid them, while 17 percent said the business had closed down before they could use them.

Daragh Cassidy of Bonkers.is says that gift cards and vouchers are always a popular present at this time of year. However he says that before buying a gift card, either as a present or for your staff, make sure you read the terms and conditions carefully.

New rules introduced in 2019 mean gift vouchers must be valid for at least five years and retailers cannot demand that a voucher all be spent in the one transaction.

“Still ensure there aren’t any other rules that might cause you or the beneficiary to lose out on money.”

Mr Cassidy says that it’s also important to check the fees on the gift card as some popular ‘gift cards’ such as One4All or cards for shopping centres are actually electronic money cards so are covered by different EU legislation.

“So I think there’s confusion here with consumers thinking they might have at least five years before any money can be deducted. One4All charges an ‘inactive fee’ of €1.45 a month after 18 months. A gift card for Dundrum Town Centre charges a fairly hefty €3 a month after 12 months. 

However, these charges often aren’t clearly communicated to customers, who sometimes only realise they’ve been charged after trying to go pay for something.”

Mr Cassidy says that his number one tip if you got a gift card this Christmas is to try and use it as quickly as possible.

And of course, this is a good time to check that you yourself don’t have any vouchers lying about that haven't been used.

The the Competition and Consumer Protection Commission (CCPC) says that consumers should be aware of rules around gift cards. If you buy a gift voucher from a business elsewhere in the EU, the five-year expiry rule may not apply and there are no EU-wide requirements.

Grainne Griffin, Director of Communications at the CCPC says that if you have vouchers from last year, think about using them to buy this year’s Christmas presents.

“If you're planning on gifting a voucher, do consider if giving cash instead might make it easier and quicker for the recipient to find the right gift for them.”

If a business closes too before you have had a chance to use the gift voucher the CCPC says that you are left with little protection, adding that you may even lose your money.

They say that circumstances will vary depending on whether the company closes, goes into liquidation, examinership or receivership. They say such businesses typically end up owing multiple debts and consumers may find themselves down the priority list.

However if you paid the company with your debit or credit card before their business ended, you can ask your bank about a chargeback.

Also if you lose a gift voucher you can look at it like losing cash as businesses do not have to replace them. However if the voucher was made out to you specifically and cannot be transferred, the business may give you a new one, says the CCPC. The advice is to check with the store you bought it from.

Another tip with gift vouchers is to look out for deals that certain stores will be running in the January sales on gift vouchers. 

Many will be offering discounts when you buy a gift voucher and it can be a handy way of getting additional discounts as you can use that discounted gift voucher on sale items.