My coffee machine refund went towards an empty Love2Shop voucher that I had thrown away: CRANE ON THE CASE

At the beginning of this year I bought an Argos coffee maker online. It was £60, and I paid £10 on my credit card and £50 on two Love2Shop vouchers I got at Christmas.

Unfortunately the machine was defective and in July Argos gave me my money back. However, the £50 was returned to the two Love2Shop cards, which I didn’t keep.

I hadn’t even thought about this because I assumed it wasn’t possible to refund money on a voucher.

I spoke to Love2Shop who said it could reissue the vouchers if I had the serial numbers, but that is not the case.

I have the last four digits of the serial numbers from my receipt, but nothing else. I asked the person who gave me the Love2Shop cards if he had proof of purchase that might have the codes on it, but he didn’t.

Argos said it’s up to me to track the old cards and there’s nothing more it can do. SM, Devon

Helen Crane, This is Money’s Consumer Champion, replies: With voucher season just around the corner, I thought it would be a good time to share this cautionary tale.

When we receive a voucher from a generous friend or family member, our instinct is to spend it as quickly as possible.

If we don’t, we risk leaving it in a wallet or drawer for months before we dig it out and realize it has passed its expiration date.

It’s just one reason why I’m personally not a fan of giving vouchers as gifts.

They may be more personal than cash, but they are also much more restrictive. Sometimes users are plagued by technical issues, like in this Virgin Experience Days story I recently covered, and stores would like nothing more than for you to forget about them.

Vouchers are a smart way to make money for stores and brands that sell them, because some of the money in them inevitably never gets used, allowing them to make a 100 percent profit on that portion.

I would always suggest that if you give a voucher as a gift, you note on the card when the voucher expires and encourage the recipient to mark it in their diary, or even set a telephone reminder.

But you escaped that fate by going out and treating yourself to a new Philips coffee pod machine, using the full £50 of your two vouchers and paying the extra £10 on your credit card.

You threw away the deflated Love2Shop vouchers – as most of us would do – and thought nothing more about it.

That was until the machine stopped working a few months later.

Argos agreed to reimburse you for the coffee machine, but you were surprised when only €10 appeared on your bill.

It wasn’t until you checked your receipt that you remembered that you’d paid for the rest of your Love2Shop cards – and the money had been deposited straight back into them.

Why would Argos do this? It may seem absurd, but the reason is that Love2Shop cards are not technically vouchers.

Instead, they are prepaid debit cards, which have a fixed amount loaded on them – although most people who get them don’t realize it, or don’t know the difference.

Most people throw them away after spending the balance, but the account remains open until the card expires – usually after a year – even if the balance cannot be topped up.

It’s a small difference, but explains why the money can be returned to the card as a refund. Argos simply followed the usual retailer policy of returning money to the card it came from.

You told me you called Argos five times to ask for help while you were on hold for hours. I really hope you’ve replaced your coffee maker, because it would be tough to get through that without a cup of the strong stuff in hand.

“I have two small children and have run out of options and time to pursue this,” you said. “I can’t believe we’re expected to keep empty gift cards.”

Argos said if you had the full serial numbers of the vouchers the company might have been able to help, but you didn’t – and it wouldn’t or couldn’t provide them to you.

And Love2Shop also said it would only reissue the cards with the £50 on them if you could provide the serial numbers.

I felt like you had made an honest mistake, so I contacted both retailers to see if they could help you get a refund from your coffee machine.

I’m happy to say that both companies have made an offer of assistance.

Choose a card: Many retailers sell them, but it’s important to understand the fine print

Firstly, Love2Shop said that even though the company couldn’t find your serial numbers, it sent you a replacement £50 Love2Shop voucher.

A spokesperson said: ‘It is standard practice to issue refunds via the original purchase method and Argos followed the correct protocol by electronically refunding the £50 to the gift cards.

‘We understand that sometimes the original cards are lost or stolen. When this happens, we require proof of purchase of the original gift card(s).

“We strongly recommend registering physical ‘credit card style’ gift cards so they can be quickly traced if any issues arise.”

Buyers can register these on the Love2Shop website.

But when I contacted you to tell you the good news, you had just received a call from Argos, who were also issuing a £50 gift voucher as a goodwill gesture.

An Argos spokesperson said: ‘We have contacted (SM) to explain that her refund has been returned to her original Love2Shop vouchers in accordance with our terms and conditions and for any further matters it is best to contact them directly.

“However, on this occasion we have issued a gift voucher as a gesture of goodwill.”

Not only did you get your money back, but you also got a £50 bonus, which should offset some of the gift card grief you experienced.

I hope it will encourage others to keep an eye on their gift cards even after they have been spent. It’s a good idea to take a photo of the serial number on your phone.

Love2Shop is not the only prepaid gift card. One4All is another popular brand, and many shopping center gift cards also follow this prepaid card model.

It’s also worth paying attention to whether there is any money left on the card when it expires, as some of these providers charge annual fees for any money left on an expired card, or for cash withdrawals from it money.

For example, Love2Shop charges a maintenance fee of £11 per year for any card that has passed its expiry date and still contains a balance.

You can exchange unused money while the card is still valid, but also up to six years after the card’s expiry date. However, there is a surcharge of £8.90.