It is that time of year, crazy last minutes attempts to shop with all the other people who are too busy to have their Christmas shopping sorted out by the end of October.  Gift cards are a good idea, but what do you do if the company you bought the gift card from goes bust?

We have covered this in some previous posts, your credit card may be the answer because there are some features on your credit card that you don't get with your savings account.



What does an insolvency expert want for Christmas?

Not a gift card.  We received an email recently from 'The Insolvency Experts' about gift cards and the risks.  They indicated that gift cards are not a good risk, because they are unsecured and the business is unlikely to agree to your gift card becoming a secured debt.

There is one thing you can do though if you are paying for something by deposit:

".. when you pay by credit card, there is at least a chance of clawing back some of the deposit from the issuing bank under their charge back rules if the retailer goes under."



Why are credit cards different?

Credit cards are subjected to different rules and regulations than your general bank account.  If you have received zero benefit for the product you can generally claw back the payment.  This doesn't apply if you get something in the post and it isn't quite what you wanted, it only applies if the other side has completely failed to do anything to satisfy their side of the contract at all.



Nothing new under the sun

This isn't a new concept.  Bruce posted an article about this same idea back in 2009, that you should use credit cards where you can because of these added protections.



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