If a trader uses vouchers and gift cards, they are providing a ‘non-cash payment facility’.
The Australian Securities and Investments Commission (ASIC) has set requirements for vouchers and gift cards, based on the Corporations Act 2001.
- must clearly display the expiry date
- can be used more than once
- cannot be reloaded (in other words, the value cannot be increased or added to)
- cannot be redeemed for cash unless there is a remaining amount that, in the reasonable opinion of the trader, cannot be conveniently used.
If a trader does not comply with these requirements, they will need to follow the more extensive requirements for non-cash payments listed in the Corporations Act 2001 (see ASIC’s Class Order (05/738) Explanatory Statement).
Using a gift voucher or gift card after the expiry date
A trader is not obliged to honour a gift card or voucher after the expiry date, unless otherwise negotiated.
If the gift card or voucher does not have an expiry date, the customer may use it for a reasonable length of time after it was originally purchased.
If the company operating the business has gone into liquidation, the consumer becomes an ‘unsecured creditor’ of the company. The new owner might not be obliged to honour existing gift cards or vouchers if they have only purchased the assets of the business.
For more information, view our insolvency page.
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