Gift token

Updated: Aug 20, 2021

Can be of various kinds but is basically a means of giving another person a predetermined sum in the form of goods which the recipient may choose for himself. Gift tokens are obtainable at many chain stores and can be exchanged for goods at any branch of that store in any part of the country. They are not exchangeable for cash nor can they be used at any shop other than a branch of the issuing store. It would not be an over-simplification to refer to them as I.O.U.s for goods rather than for cash. Gift tokens are also available in fixed units for the purchase of national savings certificates and are normally valid for six months only. These can also be used to obtain premium bonds, which do not rank for prizes until three months after the date on which the bonds are actually obtained. Gift tokens should not be confused with book tokens, which are issued, through bookshops, by a company known as Book Tokens Ltd bookshop which is a member of the Booksellers’ Association, which covers most bookshops, though not newsagents who handle books, and they can technically be used only for the purchase of books even if the bookseller also sells other merchandise.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.