Our exclusive research suggests three in 10 people have lost money when their gift cards and vouchers have gone out of date in the last five years
Gift cards and vouchers are popular gift options, often when you’re stuck for what to buy someone.
But while they’re quick and easy to buy, they’re far from risk-free. For example, you can misplace them, the shop can go bust or they can expire.
And it’s more common than you think. As our exclusive research shows, almost a third of shoppers have lost money because their gift card or voucher has expired in the last five years.
Below, I’ll explain exactly what we discovered, your gift card rights and whether I think they’re worth it.
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Millions have lost money on expired gift cards
Many gift cards give you a year or two to use them – and after that they’re worthless (unless the company agrees to help you). Vouchers often come with a shorter expiry date.
Three in 10 UK shoppers have lost money because their gift card or voucher has expired in the past five years. On average, they say they’ve lost £36.20, but dozens said they lost between £100 and £149.99 and two people lost £500!
The younger generation, Gen Z (aged 18-29) are the most likely to have their gift cards expire with over half (51%) saying it’s happened in the past five years.
Our research shows the older the shopper, the less likely they are to have experienced a gift card or voucher going out of date with just 27% of Gen X (aged 46-61) and 18% of 62 to 80 year olds saying this has happened. However, this could be because they are less likely to receive them compared to younger generations.
In terms of region, shoppers in Plymouth were most likely (44%) to have had a gift card or voucher expire in the last five years, with Belfast and London following behind (38%). People in Cardiff were the least likely to have lost money on an expired gift card with just 18% saying it’s happened to them.
How do gift cards work?
Essentially you’re buying credit – for yourself or someone else – to be used against a future purchase. Loads of retailers offer them, including Boots, Tesco and Next, and you can also get them from other businesses like restaurants, spas and cinemas.
Generic gift cards also exist – like the One4All card that you can spend with hundreds of retailers, including John Lewis, B&Q and TK Maxx. But be warned, this one introduces a monthly fee, deducted from the balance, if you don’t use it after 18 months.
Vouchers work in a similar way although they’re usually for a specific experience.
The issue is, gift cards and vouchers usually come with an expiry date. This could be a year or two, which sounds like ages, but if for some reason you can’t use the gift card or voucher within that time, it’s often difficult to get the expiry date extended.
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Expiry date warning
Anything could happen in 12 months that stops you using your voucher. You could get ill, you could move town or even country, you could lose a physical gift card or the business could go bust. If you’ve bought a voucher for an experience, and spaces or times are limited, you might struggle to book it during that time.
And if a very organised loved one buys you a gift card in advance, say a month before Christmas, you’ll have less time to use it.
In my case, I was gifted a voucher for a beauty treatment for Christmas which I had 12 months to use. But during that time I got pregnant (so was cautious about using chemicals) and then had a newborn, which made it tricky to leave the house, let alone have time to myself!
I managed to get it extended once by a few months but I still had a tiny baby and I couldn’t find the time to actually use the voucher. And the company was very reluctant to do it a second time, even when I explained my circumstances. With persistence, I managed to get it extended again and used it – but it taught me a lesson and I no longer ask friends or family for vouchers as gifts!
Other gift card risks
Andy’s written a whole guide to gift cards which includes the risks of buying them, or being gifted them.
These include:
- They prevent you from shopping around – if you’re tied to one shop you may not be getting the best deal
- Refunds go back onto a gift card if you need to return the item – and that’s not helpful if you rarely shop at that particular retailer
- Expiry dates may not be clear, especially on plastic gift cards
- It can be hard to use the full amount – and you may well forget about the pennies that remain on the card
- You can lose your money if the shop goes bust
- Your money’s not protected in the same way as with credit cards (with Section 75) and debit cards (chargeback)
Are gift cards ever worth it?
Yes, they can be. For example, if you get a discounted gift card which means it’s worth more than you pay for it – that’s a good reason to buy one.
Supermarkets often run promotions on selected gift cards, such as Spotify, Pizza Express, Cineworld and Footlocker. Amazon also offers discounted gift cards during Prime Day, Big Deals Day and Black Friday. If we spot decent deals we’ll share them on our gift card deals page.
You can also stack discounted gift cards with other offers to save even more.
And if you’re able to use it straight away – for your shopping or something in particular – that’s even better. That way you avoid the risks of losing the card, the shop going bust or you not being able to spend it for another reason.
Can I extend my gift card or voucher?
This will depend on the issuer. They might be willing to do it as a gesture of goodwill, or they might do it for a fee. For example, Red Letter Days will extend experience vouchers for £20 if you’re within two months of it expiring – after two months of the expiry date, they won’t.
Virgin Experience will extend your voucher for six months at a cost of £15 or 12 months for £20, up to three months after your voucher expires.
Or the company might just say no.
What if I lose my gift card or voucher?
Again, it’ll be up to the retailer. Some might just say tough while others may help with a replacement if you can give them proof of purchase. It’s also worth making a note of the unique gift card number as soon as you get it, just in case you lose it. If the gift card was a present, you’ll need to speak to whoever gifted it to you to get the information.
Regardless of the terms and conditions, it’s always worth asking the retailer if they can help anyway.
What happens to my gift card or voucher if a retailer goes bust?
Unfortunately, you won’t be a priority of who the company needs to pay back, so your gift card could become worthless.
However, if the gift card or voucher was bought on a credit card or debit card, you could contact the card issuer to make a Section 75 claim or chargeback claim.
If the retailer is still open and operating, you could go to the shop and see if you can still use your gift card. If so, you should try and do so quickly in case the administrator changes its mind. If the gift card was bought through a third party, you can also try and see if they’ll refund you as a goodwill gesture.
Expiry dates of gift cards and vouchers on the high street
Different retailers have different expiry dates on their gift cards – so it’s always worth checking. Here are examples.
- Asda: Two years
- Amazon: No expiry
- Argos/Habitat: Usually three years
- Caffe Nero: 18 months
- Costa: 12 months
- John Lewis: Two years
- Just Eat: 12 months
- IKEA: Five years
- M&S: Four years
- National Trust: Two years
- Netflix: No expiry
- Pizza Express: Two months
- River Island: Five years
- Ticketmaster: 12 months
- TK Maxx/Homesense: No expiry
- Virgin Experience voucher: Usually 12 months
- Wonderdays: 12 months
Gift cards that don’t expire – or have a long expiry date
I mean, there aren’t many but Apple Store gift cards have no expiration date, however the terms and conditions state that Apple may amend this at some point. If it does though, you’ll be able to return the gift card for a refund of the remaining balance.
TK Maxx, Homesense and Netflix gift cards don’t have an expiry date and Amazon gives you 10 years to use your gift cards.
Remember, even with a long expiry you’re still at risk of the retailer going bust – so it’s best to spend gift cards and vouchers as soon as you can.
Amelia’s thoughts on gift cards and vouchers
Since being pregnant and having a baby, I’ve really gone off gift cards and vouchers. But it’s one thing if I choose to buy one for myself, only at a discount, when I’m sure I can use it quickly or immediately, and another if I’m generously gifted one but may struggle to find the time to use it – and that’s if I stay fit and well and life doesn’t throw any unexpected curve balls my way.
I’d think twice about buying gift cards and vouchers as presents for people these days (unless they’re supremely organised and even then I’d still be cautious) and I’d urge you to do the same. Yes, it can be a lovely surprise but it could end up as wasted money.
I honestly think gift cards shouldn’t have an expiry date and should be accepted like cash. While our research shows that over £619 million has been lost by shoppers on expired gift cards and vouchers – that’s £619 million that retailers have held on to. And that’s not fair.
Other countries have already acted. Ireland introduced a five-year minimum expiry period in 2019, and the US has had one since 2009. But there isn’t currently legislation in the UK to set a minimum validity period for gift cards, and there aren’t any plans from the Government to do so right now. So it’s up to us to protect ourselves.
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What the industry says
Dr Hannah Shimko, Managing Director of the Gift Card & Voucher Association (GCVA), says:
“Gift cards are offered by organisations of all types and sizes, not just large retailers. Those organisations provide different goods and services and have different practical needs, so the flexibility to set an appropriate expiry date can be very important. GCVA supports that flexibility, alongside clear information and a fair opportunity for customers to use their gift.
“Its validity period may reflect how long the provider can offer that activity at an agreed price, because the cost of providing it can change over time.
“More broadly, setting a validity period helps organisations plan for their commitment to honour unspent cards, rather than keeping that financial and administrative obligation open indefinitely. Different providers will take different approaches, which is why the terms are not the same for every gift card.”
