Dodgy gift cards

Bertino75

Hi all,

I was given two digital reward codes, which I converted into prepaid virtual Mastercards (branded and marketed as flexible options). What I found instead was a system that seems almost designed to frustrate use:

• The cards don’t support 3D Secure, so they’re rejected by most decent online retailers

• You can’t combine them to make a single purchase

• You can’t easily convert them into retailer gift cards

• And if they’re gifted, you can’t get a refund — even if you can’t use them

In the end, I had to spend the money on things I didn’t really want, just to avoid wasting the value. It left me wondering: is this kind of setup even legal, or just a grey area of consumer manipulation?

Has anyone reported companies like this to the FCA, Financial Ombudsman, or Trading Standards? Do you think it’s worth pursuing?

Would love to hear if others have experienced the same and whether any regulators have taken an interest.

user1977

In what circumstances were you "given two digital reward codes"?

dumpster_fire2025

The cards don’t support 3D Secure, so they’re rejected by most decent online retailers

There's a perfectly fair argument that that is a limitation placed on the transaction by the retailer though, and it is they who you should put the blame on.

You can’t combine them to make a single purchase

This isn't the fault of the card supplier though, it's down to the retailers (or maybe it's card regulations.) I don't think I've ever seen a retailer who has allowed me to split an online transaction over multiple cards. The only time I've ever seen online retailers allow multiple payment methods is where one of them is a gift card or some sort of gift card-like balance that's held with them.

You can’t easily convert them into retailer gift cards

This is most likely related to the lack of 3D secure

And if they’re gifted, you can’t get a refund — even if you can’t use them

Well if you're not the purchaser, you wouldn't have a right to a refund anyway and few places would allow refunds to someone who isn't the original purchaser (although with a cash purchase in-store they're not likely to know.) If you're saying they flat out won't refund anyone, then that's largely true of gift cards too, which these things essentially are. Once gift cards are issued it's very rare that anyone can get a refund of them.

In terms of consumer rights, as you don't appear to have bought it, any rights would lie with the original purchaser. I suspect these were bought by a business though (most of these seem to be handed out as "cashback" for new customer signups) and so they wouldn't have any consumer rights at all.

I do think though that much like their older gift card siblings, they are designed in such a way as to "trap" money in their ecosystem (which is not to dissimilar to gift cards which appear to be designed to get you to overspend.) I think the solution however is largely to vote with our feet and either not buy them or not get sucked into sign up offers where these are the incentive.

Bertino75

Thanks for the reply — I get where you're coming from, but I think this is exactly the problem.

Yes, I understand that some of these limitations (like 3D Secure or combining cards) are technically down to retailers or regulations. But the bigger issue is that the product is marketed in a way that gives consumers the impression it works like a normal Mastercard — and it absolutely doesn’t.

Most people who receive these cards don’t choose them. They’re given as gifts or rewards, and the expectation is flexibility. The reality is:

• You can’t use them on many mainstream retailers because of missing 3D Secure

• You can’t combine multiple cards, so even if you have £120 split across two, you’re stuck

• You can’t convert them into other formats easily

• And if they were gifted, you’re left with no refund route

So while everything may be “technically correct,” the design and presentation feel deliberately obstructive. This isn’t about whether they comply with the bare minimum — it’s about whether they treat the recipient fairly. And in my case, and clearly in others, they don’t.

That’s why I think it’s worth raising with the FCA — because the system is set up in a way that risks consumers losing out, and that shouldn’t be brushed off as “just how gift cards work.”

user1977

There are rights, but as above it's the gifter buying the cards who has the rights. I'm not aware of any general principle that they can't come with restrictions as long as those are part of the terms under which they're bought (and aren't inherently unfair).

DullGreyGuy

Bertino75 said:

Thanks for the reply — I get where you're coming from, but I think this is exactly the problem.

Yes, I understand that some of these limitations (like 3D Secure or combining cards) are technically down to retailers or regulations. But the bigger issue is that the product is marketed in a way that gives consumers the impression it works like a normal Mastercard — and it absolutely doesn’t.

Most people who receive these cards don’t choose them. They’re given as gifts or rewards, and the expectation is flexibility. The reality is:

• You can’t use them on many mainstream retailers because of missing 3D Secure

• You can’t combine multiple cards, so even if you have £120 split across two, you’re stuck

• You can’t convert them into other formats easily

• And if they were gifted, you’re left with no refund route

So while everything may be “technically correct,” the design and presentation feel deliberately obstructive. This isn’t about whether they comply with the bare minimum — it’s about whether they treat the recipient fairly. And in my case, and clearly in others, they don’t.

That’s why I think it’s worth raising with the FCA — because the system is set up in a way that risks consumers losing out, and that shouldn’t be brushed off as “just how gift cards work.”

So do you have a link to the marketing? 

Splitting a transaction is purely down to the retailer, its nothing to do with the cards so in that sense its the same as any other Mastercard. 

3D Secure is an online technology, why not use them in store instead? 

Why do you think you should get a refund if you gift it to someone else? If you buy a Christmas present for someone do you expect the shop to refund you because you gave it to your wife as a present? 

Bertino75

I think we’ve reached the point where this conversation isn’t going anywhere productive.

I appreciate that people have different views, but I’m not here to debate technicalities for sport. I raised what I believe is a legitimate concern about how these cards function in practice — not just in theory — and the impact that has on recipients who aren’t armed with the small print or insider knowledge.

The sarcastic tone doesn’t add much to the discussion, and I don’t think continuing this back and forth is constructive. I’ve said what I needed to say, and I’ll leave it there.

fullyrendered

@Bertino75 I share your frustration, although I haven't felt compelled to do anything about it, other than never buy one of these cards myself and steer others away from buying them for me.

After buying something I did want with the bulk of the balance I ended up with £7.48 ish left on mine, and spent ages scouring the Argos sale for something I 'wanted' for as close to that amount as possible. To avoid leaving 48p or any amount unspent I had the option of buying something more expensive and using Nectar Points to pay the balance, but as you have explained you cannot use another bank card to pay the remainder.

It can be added to a Google Wallet and spent in-store so perhaps I will buy 48 penny sweets and use it up that way.

Fiddly. Annoying. Avoid.

mjm3346

"I was given two digital reward codes, which I converted into prepaid virtual Mastercards" 

Some survey sites offer the Mastercards along with regular giftcards in reward catalogues - I've seen many users say what a pain they are so never been tempted to try them (and I'd never spend real money them)