The Commonwealth Consumer Affairs Advisory Council (CCAAC) has released its report on Gift cards in the Australian market.

While gift cards may have some disadvantages when compared with cash, CCAAC has found that on the whole, gift cards are a convenient option for the gift giver and allow the gift card holder to select a gift that suits their needs.

The review uncovered difficulties when gift cards are not used in accordance with the terms and conditions that apply, but the CCAAC did not recommend regulatory change. Problems are exacerbated by the fact that the purchaser is not likely to be the end user, thereby separating the end user from the transaction.

The CCAAC also looked at issues relating to insolvency, expiry dates, receiving change and whether interest should be paid on unspent money.

CCAAC encourages industry to develop and promote best practice principles that support consumers when engaging with these products. To further promote industry best practice, CCAAC encourages industry participation in the ePayments code.