Latest news:

You are currently not logged in

Log in

NZ businesses urged to help consumers redeem gift cards

Kiwi businesses are urged by Consumer NZ to ensure consumers don’t miss out on redeeming their festive gift cards before they expire.

The consumer watchdog says New Zealanders lose in excess of $10 million per year on unspent gift cards with 24 per cent of gift card holders ending up stuck with a card they can’t fully redeem.

Of 61 gift cards reviewed, only 14 companies did not mention expiry dates. The shortest expiry timeframe was 12 months.

The organisation said retailers pocket a small income margin – between 5 and 10 per cent – through non-redemption rates based on the assumption that a percentage of shoppers will never spend all the money on their gift card.

“If you received a gift card from a retailer that only gives customers 12 months to redeem it, you should spend it soon,” said Gemma Rasmussen, Consumer NZ’s head of communications and campaigns.

“Though some companies offer a grace period after a gift card expires, they’re not obliged to. So, use it or lose it, basically.”

She pointed out that Australian gift card holders get preferential treatment – up to three years to redeem a card – which is not applicable in New Zealand.

Although the organisation has been campaigning for many years to end unfair gift card expiry dates, a new Fair Trading (Gift Card Expiry) Amendment Bill by National MP Melissa Lee could soon extend the minimum expiry date of gift cards to three years.

“We are hopeful this bill will be passed this year. We’ll be pushing for a minimum of five years to ensure consumers don’t miss out on what’s rightfully theirs,” said Rasmussen.

Further reading: PayPal offers digital gift cards on storefront

No Comments | Be the first to comment

Comment Manually

No comments