Present playing cards are a preferred current possibility, however they’ve some main downsides.

From birthday and Christmas by means of to leaving and marriage ceremony presents, in some unspecified time in the future, we’ve all acquired and bought present playing cards. It is sensible – they’re a simple alternative whenever you don’t know what to purchase somebody. The problem is that each time you purchase a present card you threat shedding the money on it.

Nearly all of the time you’ll be high quality, however there are a couple of dangers of present playing cards, lots of which may be decreased or prevented. Nonetheless, to be secure it’s essential to know the great and unhealthy of present playing cards.

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When present playing cards are unhealthy

I’ll lead with the hazards of present playing cards – the explanations you may discover your present card is wasted money.

Present playing cards stop you buying round

One of many key tenets of Being Intelligent With Your Money is getting the perfect deal. The best method to do that could be very easy – shop around for the best price.

But you probably have a present card to make use of at Store A, however the perfect value for what you need is at Store B, you’ve no alternative however to purchase it from Store A.

Okay, so it’s not the top of the world if we’re speaking about a couple of quid, however you received’t wish to miss out on bigger financial savings.

And what if the store you could have a present card for doesn’t have something you need? You’ll find yourself utilizing it to purchase one thing you don’t want and possibly received’t use. It’s a waste of cash.

Refunds return to a present card

One other huge threat of shopping for with a present card turns into obvious if it’s essential to return your buy.

The cash will return to a present card for a similar store. That is much less of a difficulty in case you store regularly on the retailer, however what if it’s a one-off buy?

It’s significantly unhealthy if it’s a big buy leaving a whole lot of quid on a present card fairly than in your checking account.

That is why I by no means buy discounted present playing cards for something I’m not sure about.

You additionally have to be cautious right here that you simply don’t chuck out your present playing cards when you’ve used them. Whereas most retailers will concern a brand new present card, some would require the funds to return to the unique card.

Bear in mind that on-line purchases may be refunded to credit score that may solely be used on-line. John Lewis is one price highlighting right here.

Say you’ve acquired a paper or plastic present card you should utilize at each John Lewis & Waitrose outlets and web sites. Apply it to the John Lewis web site and any refunds are in credit score simply to make use of on-line solely at John Lewis – however not Waitrose.

They typically have hidden expiration dates

Most present playing cards could have an expiration date. If you happen to don’t use them earlier than this date you lose the money. That’s high quality with paper vouchers, and most despatched by electronic mail, the place you’ll be able to see this date in black and white.

However it’s essential to be significantly cautious with plastic present playing cards. These may be loaded with totally different quantities at buy, which suggests the small print printed on them are sometimes generic.

This makes it arduous to see when the cardboard expires, or how a lot is left on them. Which means that an enormous quantity will expire unused.

There are additionally totally different guidelines for various playing cards. Generally they’ll be legitimate for a set interval, maybe one or two years. Others shall be legitimate for a sure time since they have been final used. But it surely’s not all the time clear which is which.

Some, such because the One4All card will begin charging you a month-to-month charge after a sure time (with One4All it’s 90p per 30 days after 18 months).

One of the best ways to forestall them from expiring (apart from utilizing them right away) is to make a remark of whenever you purchased/acquired the cardboard and its worth. Then every time you employ it, make a remark of the date and new worth, or preserve your receipts with it, they sometimes have particulars of what’s left on the cardboard.

It may be arduous to spend the complete quantity

Usually you’ll discover that in case you don’t use the present card in a single go you’ll be left with a couple of quid, and even pennies, left over. They’re not sufficient to purchase one thing outright, so you retain maintain of the cardboard till you subsequent go to that retailer.

And you then neglect. And that cash sits there till the cardboard expires. Extra wasted cash.

There may be limits on utilizing a number of playing cards

If you happen to’re asking a number of individuals to present you playing cards to go in the direction of a purchase order, verify if there’s a restrict to what number of playing cards you should utilize in a single transaction.

Marks & Spencer and Curry’s, for instance, will solely permit 10 for use directly.

There’s no safety with a present card

Spending with a credit score or debit card may give you some benefits over present playing cards. Section 75 of the Consumer Credit Act protects bank card purchases over £100, whereas the Chargeback scheme for credit score and debit playing cards is a route in case you’ve issues with purchases underneath £100. 

If you happen to pay with present playing cards, or money for that matter, you lose this safety.

And very similar to money, in case you lose your present card there’s no method of getting it again. So strive to not carry too many present playing cards round with you.

They are often nugatory if the store goes bust

We’ve seen a succession of excessive avenue staples shut their doorways over the previous few years, and when this occurs the directors don’t must honour any present playing cards. 

A couple of years in the past Arcadia only allowed gift cards to be used for half the total purchase, with the remaining lined by one other type of cost – forcing individuals to spend extra cash so that they didn’t lose the worth of the playing cards.

Usually outlets closing down simply cease accepting excellent playing cards. Jessops, HMV and Peacocks all made present playing cards and vouchers nugatory in a single day after they entered administration.

It’s additionally unlikely that purchasing present playing cards on a bank card and utilizing Part 75 would enable you get your a reimbursement in these conditions as present card balances are normally far lower than £100.

If, regardless of this, you continue to wish to give a card, it might be smart to keep away from any retailer which seems to be struggling.

When present playing cards are good

That’s one lengthy record of negatives on the subject of present playing cards… however there are a handful of occasions when they are often well worth the threat.

While you get an additional low cost

You don’t have to purchase them as presents – you should purchase them for your self on your personal buying. And that may be a great factor whenever you’re capable of purchase discounted gift cards.

It might imply you pay much less on your on a regular basis buying, together with at locations the place it’s arduous to search out gives. For example, although small you may get 2% again at Amazon or 4% on the grocery store – higher than the speed you’ll get from a cashback credit score or debit card.

And because the present playing cards are like money, you’ll be able to stack them with different promotions and financial savings, equivalent to in tandem with Meerkat Films on the cinema, or with BOGOF gives.

The highest locations to search for these are:

For instance, I typically get an additional 6% off John Lewis present vouchers by way of my Scottish Pleasant ISA perks. It comes as an electronic mail however I print it out and I’m ready to make use of it each on-line and in-person on the division retailer and in Waitrose.

Supermarkets typically run promotions on chosen present playing cards, equivalent to Spotify, Pizza Specific, Cineworld and Footlocker. If we spot respectable offers we’ll share them on our gift card deals page.

While you spend them right away

The principle strategy to keep away from the majority of dangers outlined above is to spend your present card as quickly as you get it! That method they will’t expire, be misplaced or lose their worth of the store goes bust.

When you should utilize them on plenty of issues

If you happen to’re set on shopping for a present card for somebody then you may have a look at one you should utilize at a number of retailers.

Although there’s all the time the chance that the businesses promoting these might exit of enterprise themselves, you’ve acquired a alternative the place you store. The principle ones are One4All and Love2Shop.

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Alternate options to present playing cards

Actually you’re higher off giving money, sending a cheque or transferring cash to a checking account. Sure these can really feel lazy and appear impersonal. However actually, is that very totally different from a present card?

I do know individuals fear that the cash will simply disappear from a checking account on on a regular basis spending than purchase one thing particular. That actually is a threat, however you’ll be able to steer somebody to make use of the gifted cash in a sure method.

Maybe you’ll be able to say “use this for a pleasant meal out”. Or to “put it in the direction of a brand new winter coat”. Hopefully in case you recommend this you’ll get a pleasant textual content or electronic mail sharing when and the place it’s spent.

And don’t be postpone sending a cheque (in case you’re nonetheless acquired a chequebook). There are a selection of banks now that allow you to pay in a cheque via the app.