The concept of gift vouchers has been around for a long time, and over that period we have seen some relatively straightforward changes that haven’t fundamentally affected the overall concept. Some of these changes include moving from paper gift vouchers to plastic gift cards, as well as the introduction of relatively open legislation across Australia regarding the lifespan of gift cards.

There wasn’t anything significant that retailers had to worry about when it came to gift cards, as long as they listed the expiry date on each gift card/voucher and kept a record of vouchers issued so that they could cross check them when they were redeemed.

In more recent times, the NSW government has responded to consumer complaints and mandated a minimum three-year expiry period for most gift cards issued from March 31, 2018.

Retailers need to allow for a greater volume of gift cards that could be redeemed at any time, meaning they may have a far greater liability to supply goods or services in the future with no additional future revenue. 

While the change has had some media attention, there is a significant risk that many smaller retailers will not be aware of this change, and this could then result in unnecessary disputes and potential legal action.

In addition to changes in expiry periods, many gift cards are now being issued in digital format, rather than the old plastic cards, via email or the store’s app, and carry unique digital codes so they can be redeemed.

Provided that your business can tap into this technology, this could represent a potential cost saving and also result in greater efficiencies.