Gift card not activated - financial issuer being dishonest

[Kangol]

I was talking with my neighbour recently about this. She is somewhat attuned to the workings of miles and points and has bought some of these Melbourne Central gift cards:

Melbourne Central - Gift Cards

Although not giving me all the particulars, I did some research and wanted to find out the truth. She has bought some in the past and used them inside and outside of Melbourne Central. There have been subsequent gift card purchases (using the same credit card) not activated and after some enquiry, it appears the issuer saw that there were purchases made from a previous GC (bought with the same cc) outside of the shopping centre and their claim was that it was against the terms of use, to use it outside Melbourne Central. They offered to refund the amount for two cards less an exorbitant "administration fee" (approximately 20%).

Upon reading the FAQs/terms, there is nothing stating that the cards cannot be used outside Melbourne Central. It clearly lists possibilities of where the GC can be redeemed, but not where it cannot. In particular when it says, "GC is redeemable for merchandise and services at Melbourne Central stores" is not the same as "GC is only redeemable for merchandise and services at Melbourne Central stores".

I suggested she take it up with her credit card for a reversal but she thinks that route is not feasible because they can provide false terms and get away with it. People here have mentioned the FOS for different topics and maybe that could be a possibility.
Surely an issuer of eftpos cards is liable to the rules of the FOS? It is unfathomable that an issuer, bank or not, could do so and bypass regulations in Australia. If anyone can comment or provide assistance, that would be helpful.

Ultimately, it's the principle at stake here.

 

[Milboo]

Sorry but I disagree. It is clearly for Melbourne Central shopping centre, with some extension allowed to some other GPT operated shopping centres.

It doesn’t need to state where it cannot be redeemed - just where it can be redeemed. And the website is pretty clear in that regard.

Add to that the fact it is prominently branded the Melbourne Central Gift Card and this is used extensively in the website copy. It also states a condition re individual retailers in the centre.

Sorry but your neighbour is not on the right side of this one. They have offered a gesture to refund less the admin fee which is reasonable. I’ve dealt with these cards before and they are an expensive to administer.

 

[kapook]

she can get her credit card issue to chargeback especially as the product paid for was not provided t`s and c`s were not provided at purchase. I have done so.

 

[MEL_Traveller]

If your neighbour is in doubt they can contact Consumer Affairs in Victoria. They provide free advice on these things.

But I'm with Milboo on this one. It is clearly a Melbourne Central Gift Card, for redemption at Melbourne Central stores.

 

[Kangol]

I’ve dealt with these cards before and they are an expensive to administer.

Interesting, I was thinking of getting some myself having not heard about them until very recently.
How much are we talking, expense wise?

 

[ric_melb]

It's very interesting. The terms of use need to be tightened up, but I think the intent is clear. The card should only be used at the named GPT centres. I do think GPT or their agent should refund the money on the two cards not activated. I do understand the need for the 20% admin fee, although maybe GPT or their agent should waive it. Then your friend should move on.

 

[kapook]

Just for info Does anyone know why they are strict are on cards not being used elsewhere? What difference does it make to them?

 

[Milboo]

Because there is a cost for the Centre to manage and administer the cards. They are offered as a way of increasing foot traffic and in store spend in the Centre.

The costs of the cards and the program will be borne by the retailers in the Centre through a marketing levy charged under their leases. Hence why they are Centre specific.

 

[kapook]

Because there is a cost for the Centre to manage and administer the cards. They are offered as a way of increasing foot traffic and in store spend in the Centre.

The costs of the cards and the program will be borne by the retailers in the Centre through a marketing levy charged under their leases. Hence why they are Centre specific.

thanks Milboo!

 

[blackcat20]

Misuse of the original cards shouldnt mean they can sell her subsequent cards that havent been activated...

 

[kapook]

Misuse of the original cards shouldnt mean they can sell her subsequent cards that havent been activated...

True .they should reverse the credit card charge and end the matter. Not Penalise her with an admin fee. thats arm twisting.

 

[MEL_Traveller]

True .they should reverse the credit card charge and end the matter. Not Penalise her with an admin fee. thats arm twisting.

Perhaps the admin fee might be excessive - who knows the actual costs involved. But the fact is that your friend breached the terms and conditions by using the cards outside Melbourne Central. It's only the most obtuse reading that could possibly suggest you could use the card wherever you wanted. Were the card purchased at a discount by any chance? (If not, one wonders what the point to them would be, unless a gift.)

There would be costs involved for using the card outside Melbourne Central, some sort of reconciliation to pay the merchant, which would cost admin time.

 

[Kangol]

Because there is a cost for the Centre to manage and administer the cards. They are offered as a way of increasing foot traffic and in store spend in the Centre.

The costs of the cards and the program will be borne by the retailers in the Centre through a marketing levy charged under their leases. Hence why they are Centre specific.

What is the cost though? You can PM if you don't want to post this in the thread.

 

[Kangol]

Perhaps the admin fee might be excessive - who knows the actual costs involved. But the fact is that your friend breached the terms and conditions by using the cards outside Melbourne Central. It's only the most obtuse reading that could possibly suggest you could use the card wherever you wanted. Were the card purchased at a discount by any chance? (If not, one wonders what the point to them would be, unless a gift.)

There would be costs involved for using the card outside Melbourne Central, some sort of reconciliation to pay the merchant, which would cost admin time.

That's the point. The terms do not say you cannot use or are prohibited from using them elsewhere.
If that were the case, then why not clearly state it?
Think about what sort of precedent that could potentially set....

 

[Milboo]

What is the cost though? You can PM if you don't want to post this in the thread.

No I can't share that information. You would need to make your own enquiries with a card provider. The information I have is specific to my work and negotiated rates.

 

[MEL_Traveller]

That's the point. The terms do not say you cannot use or are prohibited from using them elsewhere.
If that were the case, then why not clearly state it?
Think about what sort of precedent that could potentially set....

From the link provided in the opening post:

Where to use the Melbourne Central Gift Card ?

The Melbourne Central Gift Card can be used at any participating store where EFTPOS is accepted, across the following shopping centres;

NSW
Charlestown Square
Rouse Hill Town Centre
Wollongong Central
Norton Plaza

NT
Casuarina Square

VIC
Chirnside Park
Highpoint Shopping Centre
Melbourne Central
Parkmore Shopping Centre

For assistance with your online Gift Card purchase, please call 1300 764 721.

I'm not convinced there can be any further clarity added by listing exclusions.

 

[Pushka]

Just for info Does anyone know why they are strict are on cards not being used elsewhere? What difference does it make to them?

So you think it’s ok for people to use a woolies card at Coles?

 

[odysseus]

So you think it’s ok for people to use a woolies card at Coles?

Actually I do, if woollies and Coles permit it. Though this isn't a case of even using it at a competitor. It's just using the card at some retailers and not others.

Cards are used at multiple venues aside from the original retailer often - including this example. The only issue is then exactly which retailers can it be used at - and that comes down to how it is locked down, or what is in the terms and conditions. Neither seem to have been done in this case. The only limitation - and even then it's only vague guidance - is in the FAQ, which is meant to be helpful support, not where key terms are defined.

 

[MEL_Traveller]

Actually I do, if woollies and Coles permit it. Though this isn't a case of even using it at a competitor. It's just using the card at some retailers and not others.

Cards are used at multiple venues aside from the original retailer often - including this example. The only issue is then exactly which retailers can it be used at - and that comes down to how it is locked down, or what is in the terms and conditions. Neither seem to have been done in this case. The only limitation - and even then it's only vague guidance - is in the FAQ, which is meant to be helpful support, not where key terms are defined.

Unless they’ve changed the terms and conditions since yesterday (which is possible given this thread), they clearly state the use of the gift card is for merchandise at any melbourne central store where EFTPOS is available. It’s the second bullet point under the terms and conditions. Backed up but the FAQ.

 

[Pushka]

Actually I do, if woollies and Coles permit it.

Have you actually been successful?