Gift cards and vouchers: expiry dates, and what happens if the shop goes bust

What's happened

Gift cards are one of the easiest Christmas presents to buy, and one of the easiest to lose money on. Some come with an expiry date tucked away in the small print, and if the shop goes into administration, the card can become worthless overnight.

It has happened before at the worst possible time. Which? reported that the administrators of Debenhams stopped accepting gift cards on 20 December 2020, just before Christmas. In a guide updated in February 2026, Which? warns that administrators "can decide to stop honouring gift vouchers at any point."

There is one new protection this year, though it only covers savings schemes, not ordinary gift cards. Here's where you stand.

What the law says

• Expiry dates. There's no UK law setting a minimum life for a gift card. Which? says "expiry dates are allowed as long as the person buying the voucher was made aware of this at the time of purchase." Under section 68 of the Consumer Rights Act 2015, written terms must be "transparent", meaning in plain, intelligible language and legible. If the expiry date was hidden, Which? says the term may not be fair, which gives you grounds to ask for an extension.
• If the shop goes bust. Once a business is in administration, the administrators decide whether gift cards are accepted. If they're not, you're owed money like any other customer, but Citizens Advice warns that "other people, like banks, will get paid first so you might not get any money back."
• Paying by credit card. Under section 75 of the Consumer Credit Act 1974, your card provider is jointly responsible with the seller for single purchases costing more than £100 and up to £30,000. Which? says that covers gift cards bought on a credit card where the single purchase was over £100. Below that, or if you paid by debit card, you can ask your bank for a chargeback, though Which? says this is "not always successful."
• Christmas savings clubs. Since 1 January 2026, sections 282 to 290 of the Digital Markets, Competition and Consumers Act 2024 require businesses running consumer savings schemes, where you pay in over time and redeem the money later, to protect your payments with insurance or a trust if the business fails. The government's guidance gives Christmas savings clubs and hamper schemes as examples. This doesn't cover a gift card you simply buy and put in a card.

What it means in pounds: a worked example

This is an illustration, not a real case.

In December, Pat buys three gift cards for the same high street chain:

• a £150 card for a grandchild, paid for in one transaction on a credit card
• two £50 cards for friends, paid for together on a debit card

In January the chain goes into administration, and the administrators stop accepting gift cards. The cards are now worth nothing in store.

• The £150 card: the purchase was over £100 and paid for on a credit card, so Pat can claim the full £150 from the card provider under section 75.
• The two £50 cards: section 75 doesn't apply to debit cards, so Pat asks the bank for a chargeback. If that fails, Pat can register a claim with the administrators for the £100, but as an ordinary customer is likely to get back little or nothing.

Had Pat bought the two £50 cards on the credit card as separate items, neither would have been over £100, so section 75 still wouldn't have applied. Chargeback would be the only route.

What to do now

1. Check the expiry date before you buy. Look on the card, the receipt and the retailer's terms. If it's short, consider another present or a different card.
2. Pay by credit card for gift cards over £100, and clear the balance in full so you don't pay interest.
3. Keep the receipt with the card, or pass it on to the person you give it to. Which? says gift cards are "like cash", and you'll usually need proof of purchase to get a lost card replaced.
4. Spend gift cards promptly, especially from a shop you've heard is struggling. If the administrators say they'll still accept them, Which? says to use them quickly in case that changes.
5. If a card isn't honoured, try your card provider first, then write to the administrators with proof of the card and its balance. Their details are usually on the company's website or on Companies House.

Your questions answered

Can I get an expired gift card extended?

Sometimes. Which? says you may be able to extend it for a fee, and a free extension is more likely if the expiry conditions weren't made clear when the card was bought.

Is a gift card I've been given protected the same way?

Section 75 protection belongs to the person who paid on their credit card, so if a card you were given isn't honoured, ask the person who bought it to make the claim.

How do I know if my savings club is protected?

Under the new rules, schemes must tell you how your payments are protected. If you're paying into a Christmas savings scheme and haven't been told, ask the business who protects your money.

Sources: Which?: your rights with gift vouchers and cards, Which?: gift card warning, Consumer Rights Act 2015, section 68, Consumer Credit Act 1974, section 75, Digital Markets, Competition and Consumers Act 2024, Part 4, Chapter 3, Department for Business and Trade: consumer savings schemes, Citizens Advice: if a company goes out of business, GOV.UK: register as a creditor