Gift cards and vouchers now have three year expiry
Gift cards and vouchers now have three year expiry
Gift vouchers can be a great way to attract customers, maximise marketing campaigns and increase sales - so long as you don't get caught out by the new rules.
Does your business offer gift cards or vouchers? If so, new laws came into effect on 1 November 2019, which you will need to adopt. Gift cards and vouchers issued on or after 1 November 2019 must meet the new requirements of the Australian Consumer Law (ACL).
New Gift Card Laws
- Mandatory minimum expiry period of three years from the date of issue.
- The actual expiry date must be listed on the card; alternatively, the supply date and expiry period, for example, "Valid for 3 years from 11/02/2020".
- Post-purchase fees are no longer allowed. Payment processing fees may be allowed, however activation, top-up, account keeping or balance enquiry fees are not.
There are some situations in which the new requirements don't apply, for example if the card can be topped up if it is part of a temporary marketing promotion or if it is donated free of charge for promotions. Visit ACL new Gift Card Laws webpage for full details.
If you have not met the new requirements on vouchers since 1 November, the new laws will still apply even if the actual voucher does not. Customers will be able to redeem the voucher within the three-year expiry regardless of what is stated on the voucher. Gift cards and vouchers issued before 1 November 2019 have the same expiry period and conditions of purchase as at the time of purchase.
What Next?
- Review your gift voucher terms and conditions.
- Update your printed and online vouchers and related marketing material.
- Check the information published on your website and social media.
- make sure your internal processes and point-of-sale systems are brought up to date and remember to tell your staff of the changes.
Need help?
Talk to us about how the changes affect your business operations and cashflow.
