Gift cards: they're the go-to present for birthdays, holidays, and those 'just because' moments.

But new data suggests that Australians are losing a staggering $1.4 billion on unused gift cards annually.

According to a recent survey by comparison website Finder, approximately one in four people, or an estimated 4.9 million Australians, have received a gift card and never used the funds.

This equates to an average loss of nearly $200 per person each year.

Aussies reportedly lose $1.4 billion on unused gift cards each year. Image source: Freepik.

Gift cards are a popular choice for many gift-givers, offering a practical solution when you're unsure of the recipient's preferences or want to provide them with a versatile gift.

However, as Finder's Personal Finance Expert Sarah Megginson pointed out, 'Keeping track of them can be challenging, and many end up unused simply because they get lost in a wallet or a drawer.'

The survey, which asked more than 1000 Australians, revealed that about 20 per cent of people didn't use their gift card before it expired, while around 5 per cent lost it altogether.

A smaller percentage, about 1 per cent, were unable to spend their gift card because the issuing business went bust.

Furthermore, more than a third said they owned at least one unused gift card, while a quarter admitted to owning at least two.

Interestingly, the survey found that while men had more money left on unspent cards—an average of $243 compared to $160 for women—they were less likely to let the funds expire.

When it comes to generational differences, baby boomers proved to be the most efficient at spending gift cards, with only 13 per cent having lost money, compared to a whopping 37 per cent of Gen Z (those born mid-to-late 1990s and early 2010s).

Since November 2019, all gift cards sold in Australia are required to have a minimum three-year expiry period.

However, this doesn't protect cardholders from a retailer going out of business or relocating.

To avoid losing out on the value of gift cards, Finder suggests setting a monthly reminder on your phone with the gift card's expiry date.

Alternatively, unused gift cards can be sold on an online marketplace for a slightly lesser value.

Key Takeaways

• Australians are estimated to lose $1.4 billion each year from unused gift cards, according to new data from Finder.
• A survey has found that a quarter of Australians, which equates to approximately 4.9 million people, have failed to use the funds on gift cards they’ve received.
• Gift cards in Australia must now have a minimum three-year expiry period, but this does not cover situations where businesses close down or relocate.
• Finder suggests setting a monthly reminder for the expiry date of gift cards or selling them on an online marketplace to avoid losing their value.

Members, have you ever lost money due to an expired or lost gift card? Share your stories in the comments below.

 

[mylittletibbies]

There's no accounting for people's stupidity.
With everyone supposedly struggling to make ends meet, why don't people use these cards for their grocery shopping? A lot smarter than putting it away somewhere and forgetting about it.

 

[Mrtnst]

There's no accounting for people's stupidity.
With everyone supposedly struggling to make ends meet, why don't people use these cards for their grocery shopping? A lot smarter than putting it away somewhere and forgetting about it.

One reason is that the majority of gift cards are product or provider specific, i.e. Netflix, Spotify or Google and Apple gift cards.

You can hardly use a Netflix gift card in Woollies or Coles.

If all gift cards were eftpos cards there would be a lot less of a problem.

 

[mylittletibbies]

One reason is that the majority of gift cards are product or provider specific, i.e. Netflix, Spotify or Google and Apple gift cards.

You can hardly use a Netflix gift card in Woollies or Coles.

If all gift cards were eftpos cards there would be a lot less of a problem.

Brains not working too well this morning, I didn't even think of that.
It's 5.45 here in the west, guess I need a.coffee to wake myself up

 

[Colette 3799]

I have given away some gifts cards I received as they are not able to be used in our area. I hate them being wasted so I’m happy if someone else can use them. My husband actually won a $100 red balloon gift card last Christmas in a raffle which we will have to give away soon. So many cards are restrictive

 

[Petra]

Some gift cards you can use anywhere ... Aldi, JB HiFi or wherever.

 

[Leenie]

There should not be a time limit on using these cards ,the powers that be should step in and fix this problem, these companies are getting richer on unused cards because people have missed using before the expiry date. We have local companies in Maryborough that have
No use by date , as it should be.

 

[Catherines]

There should not be a time limit on using these cards ,the powers that be should step in and fix this problem, these companies are getting richer on unused cards because people have missed using before the expiry date. We have local companies in Maryborough that have
No use by date , as it should be.

Why there is always a 'use-by' date is beyond me. If you don't use it by the date then the only loss is yours - products get more expensive every year so taking your time to use the card means a $50 card next year will be worth (in product) only about $40 and so on year after year. You are the loser the longer you keep the card and don't use it. The provider of the card gains from day one because someone has already paid $50 for it at the time of purchase. There should not be a time limit on use.

I once had a Target card that was just a week past the 3-year use by date & was told I could not use it. I argued the above point with them and eventually the shop relented and allowed me to purchase.

 

[Jarred Santos]

If you don't use it by the date then the only loss is yours - products get more expensive every year so taking your time to use the card means a $50 card next year will be worth (in product) only about $40 and so on year after year. You are the loser the longer you keep the card and don't use it.

Never thought of it this way :O Great point, @Catherines!

I once had a Target card that was just a week past the 3-year use by date & was told I could not use it. I argued the above point with them and eventually the shop relented and allowed me to purchase.

Good on the staff for hearing you out, too!

 

[VK2LEE]

There's no accounting for people's stupidity.
With everyone supposedly struggling to make ends meet, why don't people use these cards for their grocery shopping? A lot smarter than putting it away somewhere and forgetting about it.

I have received gift cards last year & the year before but the cards are NOT Useable at any local stores etc. [but are about 80 klms away] & NOT at stores I usually purchase from... So I still have 3 cards in MY Wallet. Hopefully I will be able to spend these cards on something I like from shops I normally DO NOT USE at a shopping centre over 80klms away.. I usually received Bunnings gift cards which I do travel over 50klms to the closest Bunnings store and spent them... Last year I did receive a letter from Bunnings telling Me that I had an outstanding gift card worth $50 and to use the letter as the lost gift card and yes, I had lost the Bunning s gift card so I used the letter next time I was at Bunnings.. There are Gift cards available for Youth Men & Women etc and they are ONLY for use in particular stores which are all in Sydney or Newcastle etc... If all gift cards were able to be used in Woolworths or Coles it would have been much better... BUGBUYER 68autobug

 

[mylittletibbies]

I have received gift cards last year & the year before but the cards are NOT Useable at any local stores etc. [but are about 80 klms away] & NOT at stores I usually purchase from... So I still have 3 cards in MY Wallet. Hopefully I will be able to spend these cards on something I like from shops I normally DO NOT USE at a shopping centre over 80klms away.. I usually received Bunnings gift cards which I do travel over 50klms to the closest Bunnings store and spent them... Last year I did receive a letter from Bunnings telling Me that I had an outstanding gift card worth $50 and to use the letter as the lost gift card and yes, I had lost the Bunning s gift card so I used the letter next time I was at Bunnings.. There are Gift cards available for Youth Men & Women etc and they are ONLY for use in particular stores which are all in Sydney or Newcastle etc... If all gift cards were able to be used in Woolworths or Coles it would have been much better... BUGBUYER 68autobug

I agree, you would think the person giving the card would put a bit more thought into it.

 

[Midnight Toker]

There's no accounting for people's stupidity.
With everyone supposedly struggling to make ends meet, why don't people use these cards for their grocery shopping? A lot smarter than putting it away somewhere and forgetting about it.

I arrived back in the UK the day Covid arrived there too. It took me nearly four years to make it back here and I had two Australian gift cards that expired while I was away. It is an absolute rort.
Anyway, there is no accounting for some people's stupidity, Tibbies.
PS: I had no idea that they had an expiration date anyway

 

[mylittletibbies]

I arrived back in the UK the day Covid arrived there too. It took me nearly four years to make it back here and I had two Australian gift cards that expired while I was away. It is an absolute rort.
Anyway, there is no accounting for some people's stupidity, Tibbies.
PS: I had no idea that they had an expiration date anyway

I did say SOME people. Lol
Did you think of approaching the companies, a decent company should have honoured them.
You are right, they are a rort. They have been paid, it shouldn't make any difference to them when you use them.
With inflation the way it is you'd probably get very little for them now.
Unless you have super generous friends.

 

[katdragon2010]

There should not be a time limit on using these cards ,the powers that be should step in and fix this problem, these companies are getting richer on unused cards because people have missed using before the expiry date. We have local companies in Maryborough that have
No use by date , as it should be.

I agree wholeheartedly. The card has been paid for with real money. Money doesn't expire and neither should these cards.

 

[PattiB]

Expiry dates aren’t a problem when you shop online. Our son sends Ted & I gift cards for birthdays, Father’s Day & Mother’s Day unless we’re all together but always Bunnings & Myer, Target for me.

 

[Dillydozer.]

Gift cards: they're the go-to present for birthdays, holidays, and those 'just because' moments.

But new data suggests that Australians are losing a staggering $1.4 billion on unused gift cards annually.

According to a recent survey by comparison website Finder, approximately one in four people, or an estimated 4.9 million Australians, have received a gift card and never used the funds.

This equates to an average loss of nearly $200 per person each year.

View attachment 39396

Aussies reportedly lose $1.4 billion on unused gift cards each year. Image source: Freepik.

Gift cards are a popular choice for many gift-givers, offering a practical solution when you're unsure of the recipient's preferences or want to provide them with a versatile gift.

However, as Finder's Personal Finance Expert Sarah Megginson pointed out, 'Keeping track of them can be challenging, and many end up unused simply because they get lost in a wallet or a drawer.'

The survey, which asked more than 1000 Australians, revealed that about 20 per cent of people didn't use their gift card before it expired, while around 5 per cent lost it altogether.

A smaller percentage, about 1 per cent, were unable to spend their gift card because the issuing business went bust.

Furthermore, more than a third said they owned at least one unused gift card, while a quarter admitted to owning at least two.

Interestingly, the survey found that while men had more money left on unspent cards—an average of $243 compared to $160 for women—they were less likely to let the funds expire.

When it comes to generational differences, baby boomers proved to be the most efficient at spending gift cards, with only 13 per cent having lost money, compared to a whopping 37 per cent of Gen Z (those born mid-to-late 1990s and early 2010s).

Since November 2019, all gift cards sold in Australia are required to have a minimum three-year expiry period.

However, this doesn't protect cardholders from a retailer going out of business or relocating.

To avoid losing out on the value of gift cards, Finder suggests setting a monthly reminder on your phone with the gift card's expiry date.

Alternatively, unused gift cards can be sold on an online marketplace for a slightly lesser value.

Key Takeaways

• Australians are estimated to lose $1.4 billion each year from unused gift cards, according to new data from Finder.
• A survey has found that a quarter of Australians, which equates to approximately 4.9 million people, have failed to use the funds on gift cards they’ve received.
• Gift cards in Australia must now have a minimum three-year expiry period, but this does not cover situations where businesses close down or relocate.
• Finder suggests setting a monthly reminder for the expiry date of gift cards or selling them on an online marketplace to avoid losing their value.

Members, have you ever lost money due to an expired or lost gift card? Share your stories in the comments below.

I have 3 gift cards from Surveys I have done on my phone, but I have lost the link and when I go to the shops find it difficult to stand in a queue and then try and find where they are kept.

 

[IAN3005]

There should not be a time limit on using these cards ,the powers that be should step in and fix this problem, these companies are getting richer on unused cards because people have missed using before the expiry date. We have local companies in Maryborough that have
No use by date , as it should be.

Well said....

 

[Gsr]

Not that long ago most gift cards had a 12 month expiry date, legislation was passed so they had to have a minimum of 3 years, which most cards adopted. Bunnings has never had an expiry date and as stated above will send a letter out to purchasers who haven’t used their cards. I work for Bunnings and have had customers come in with these letters and we do accept them in lieu of lost gift cards. I think all gift cards should have no expiry on them.

 

[Catherines]

Inflation lessens the purchasing value of your gift cards - the longer you keep it or forget to use it the bigger the loss to you as prices rise every day, not just every year.

You forget to use it then the loss in its value is only yours, no one else’s, because the vendor has already gained at time of purchase of the card.

There should not be an expiry date - EVER.

 

[VK2LEE]

I agree, you would think the person giving the card would put a bit more thought into it.

Well I believe they bought the cards at a discount so a $50 card was only $40 etc... that is how I ended up with these particular cards... looks like I need to travel around 80 klms or further to a Cotton On shop to use these cards.