People in the UK waste £250 million annually on store gift cards they never use, according to industry figures. Annual sales of the cards exceed £4 billion, with around half given as personal gifts and the rest by businesses. However, 6% of the value on the cards is never redeemed, partly due to expiry dates that can be as short as one year.
The UK Gift Card and Voucher Association said many shops extend the expiry date each time the card is used. Director General Andrew Johnson told BBC Radio 4's Money Box: 'For a retailer, a gift card or voucher remains a liability on the books so at some point it makes good financial sense to remove that liability.' In 2011, sales of gift cards totalled £2 billion in retail stores, with an additional £2.18 billion bought by businesses for promotions or staff rewards.
Some of the unused £250 million represents leftover change. For example, a £20 card used to buy an £18.99 item leaves £1.01 to spend later. But many people are unaware of expiry dates, often because the information is printed in very small text on the back of the card. Mick Wannell told Money Box he was surprised when his card was declined: 'When I tried to use it I was told it was empty. But it had only timed out because the card had not been used for two years. But there was unspent money.'
Typically, terms and conditions on the back of the card warn that it expires '12 months after purchase' or 'two years after it was last used', but the print is small and no exact date is given. The only way to find the expiry date is to ask the retailer, though some may provide the information online or by phone. Mr Johnson noted that most people use their cards within six months, adding: 'Retailers would much rather you were in the store spending the money. Most people who spend a gift card in a store spend another 40%.'
