Buying a gift card at Christmas may seem like a great idea, but many don’t use the money before expiration dates set by major retailers. Source: Supplied

As many as one in three gift card recipients fail to cash in before time runs out, ­consumer advocate Choice has warned.

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Shoppers should check terms and conditions before parting with their money, spokesman Tom Godfrey said.

Some gift cards from small beauty salons and restaurants were worthless after only three to six months. Many major businesses, such as Dymocks, Hoyts and Westfield, left users empty-handed after 12 months, he said.

Australians spend up to $2.5 billion a year on gift cards.

A Choice survey of 1000 adults found 88 per cent had given or received a gift card in the past year. A separate poll of 735 found only one in four preferred gift cards to cash.

They favoured Bunnings gift cards, which had no expiry date, Coles Group and Myer cards with two-year limits, and Woolworths’ 12-month expiry plus grace period.

“To avoid the gift card Scrooges this Christmas look for a card without an expiry date or just give cash,” Mr Godfrey said.