The finance expert said there are four specific considerations you should think about before buying this present and even offered a ‘better’ alternative with fewer risks involved
Some people are easy to buy Christmas presents for while others are more difficult – this where gift cards come in. Vouchers like these can be a great choice as they allow someone essentially to choose their own present. All you have to do is pick the retailer, be it Amazon, a fashion or technology brand, that you know they like and use.
However, this seemingly stress-free Christmas present option is not without its risks. Martin Lewis issued a warning for anyone tempted to buy a gift card or voucher to consider beforehand, with the money guru highlighting four specific factors to watch out for.
As part of a mammoth guide aimed at helping people ensure they enjoy the festive season without breaking the bank, Martin’s MoneySavingExpert site advised shoppers to be wary when buying these type of presents firstly because sometimes retailers can go bust. “A host of big name retailers have gone into administration in recent years.
“When this happens, they usually stop accepting cards altogether and there’s very little you can do to get your money back,” it wrote. Next up is to being aware of a gift card’s expiry date as, “most gift cards must be redeemed within a certain period of time, so the recipient needs to spend them before time runs out.”
Thirdly, watch out for any administration fees. “Some companies will begin reducing your balance if you don’t use the card within a certain timeframe, such as the the multi-shop gift card provider One4all, which deducts 90p a month from your balance once you’ve had the card 18 months,” it explained.
The last tip is that the person you give card or voucher too could simply forget about or lose it: “Often people forget to use them, lose them, delete the email, or accidentally run them through the wash.” MSE went on to say that a “much better alternative to gift cards” is just giving cash instead.
However, there will still be people who like the idea of giving a loved one a gift card rather than money. In this case, the money experts advise: “If you still want to buy one, there are some multi-shop gift cards, such as Love2Shop, which you would be able to use at other retailers in the scheme if one shop went bust.”