Consumer Gift Cards vs Promotional Gift Cards:

Gift cards may look similar on the surface, but under Australian Consumer Law they fall into two distinct categories: Consumer Gift Cards and Business Promotional Cards.

Each type serves a different purpose, follows different rules, and offers businesses different levels of flexibility.

Consumer Gift Cards are the classic cards purchased by one person and given to another, think birthday, Christmas, or thank you gifts. Because they function as a consumer product, they are strictly regulated. The most important rule is that all consumer gift cards must be valid for a minimum of three years from the date of purchase, ensuring customers have plenty of time to redeem them. These cards are typically sold at face value (e.g., $50 for $50) and are intended purely for personal gifting.

Promotional Gift Cards, on the other hand, are issued by businesses as part of marketing, loyalty, incentive, or engagement programs. They’re commonly used for rewards, sign ups, referrals, employee recognition, customer win backs, event giveaways, or limited time offers. Because they are not considered “consumer to consumer” gifts, promotional cards do not need to meet the three year minimum expiry rule. Instead, businesses can set whatever expiry period suits the campaign, whether that’s 30 days, 6 months, or 12 months.

Promo cards can also be supplied at a genuine discount (e.g., $60 massage card sold for $15), used as part of cross promotions, or issued by charities and government agencies. They are often branded, trackable, and designed to encourage specific customer behaviours.

LocalCard supports both types: Gift Cards for consumer gifting, and Promo Cards for business incentives. Understanding the difference ensures compliance while giving businesses the flexibility they need to run effective reward and marketing campaigns.