Selling gift cards

Gift cards are a convenient and popular product for many consumers. As a seller, there are rules and guidelines for you to follow when offering gift cards.

The Australian Consumer Law (ACL) has been amended to include specific rules for gift cards. Because the ACL applies nationally, these rules mean traders only have one set of gift card rules they must comply with, reducing red tape and saving you time and money.

Any gift cards sold in Australia must have a minimum 3-year expiry period, and the expiry date must be clearly displayed on the card or voucher.

Exemptions

Some cards are excluded from the rules, including cards or vouchers that are:

• for a good or service available for a limited time where the card or voucher expires at the end of that period (e.g. entry to a concert or museum exhibition)
• supplied to a purchaser of goods or services as part of a temporary marketing promotion (e.g. a $50 wine voucher valid for 1 month that is mailed to a consumer as a bonus with a purchased item and which was not part of the purchase offer)
• given free of charge for promotional purposes (e.g. a local shopping centre has a 1-day marketing promotion where each visitor to the centre that day is handed a $20 gift card that is valid for use at any store in the centre on that day only)
• sold for a particular good or service that is below the market value of that good or service (a genuine discount—e.g. a $50 card for a salon service valued at $100)
• supplied as part of a rewards program and given as a bonus relating to the purchase of a good or service for use in the same business (e.g. customer loyalty programs).

Terms and conditions

You should be clear about the terms and conditions on gift cards:

• Don’t mislead your customers, whether about which products they can buy with the card or any other terms and conditions of use.
• Show expiry dates. Gift cards sold in Australia will have a minimum 3-year expiry period. The expiry date should be clear on the card.
• Be specific about inclusions and exclusions. If a gift card is for a shopping centre, make it clear which stores will and which will not accept the gift card.
• Give the buyer a copy of your terms and conditions. Encourage them to pass it on to the gift card recipient. Make your terms and conditions available on your website and in store.
• Record the details of any gift cards you sell. Then you can replace lost or stolen cards.
• Don’t charge post-purchase fees. Once you have issued a gift card, you must not charge fees that would reduce its value (e.g. activation, account-keeping or balance enquiry fees). You can still charge fees you would normally charge as part of a transaction (e.g. overseas transaction fees, booking fees, or fees charged to replace a lost, stolen or damaged card).

Values and balances

Here are some guidelines about the values and balances on gift cards:

• Don’t set a minimum-spend limit. For example, a customer who wants to use a gift card with a low balance (e.g. $4) should not have to spend a minimum amount (e.g. $10) to use the card.
• Don't force a customer to use the whole amount in one transaction. For example, you should allow a customer to spend $40 of a $100 gift card by adjusting the remaining value of the gift card or issuing a new gift card for $60.
• Offer cash change for small amounts remaining on the card. For example, if the gift card is for $100, and the consumer has redeemed at least $90, you should offer to pay the rest of the original value in cash.
• Let customers check the balance on their gift card for free. An online service is best, but if not available, the service should be available in store.

Business changing hands

Make sure to keep your customers advised of the status of their gift cards if your business:

• changes hands
• goes into administration, receivership or liquidation.

If you sell your business, we encourage you to take steps to make sure that the new owner will still honour your gift cards.