My coffee machine refund went to an empty Love2Shop voucher I'd binned: CRANE ON THE CASE

• e-mail

Early this year, I bought a coffee machine from Argos online. It was £60, and I paid £10 on my credit card and £50 on two Love2Shop vouchers I was given at Christmas.

The machine was unfortunately faulty, and in July Argos issued me a refund. However, the £50 was issued back to the two Love2Shop cards, which I didn't keep.

I hadn't even considered this, as I assumed it wasn't possible to refund money back on to a voucher. 

I have spoken to Love2Shop, which said it could re-issue the vouchers if I had the serial numbers, but I don't. 

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 they had proof of purchase which might include the codes, but they didn't.

Argos said it is up to me to track the old cards and there is nothing more it can do. S.M, Devon

Bean and gone: This reader returned her coffee machine as it was faulty, but had thrown away the vouchers that she had used to pay for it - meaning she couldn't get the cash

Helen Crane, This is Money's consumer champion replies: As voucher season is upon us once again, I thought it was 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 soon as possible.

If we don't, we risk leaving it to languish in a wallet or a drawer for months, before unearthing it and realising it's past the expiry date. 

It is 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 tech trouble, as in this Virgin Experience Days story I covered recently, and shops would love nothing more than for you to forget about them. 

Vouchers are a clever money maker for shops and brands that sell them, as some of the cash loaded on is inevitably never used - leaving them with a 100 per cent profit on that slice. 

I'd always suggest that, if you do gift a voucher, you make a note in the card of when it expires and encourage the recipient to put it in their diary, or even set a phone reminder. 

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

You chucked away the drained Love2Shop vouchers - as most of us would - and thought little more of it. 

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

Argos agreed to refund you for the coffee maker, but you were surprised when only £10 popped back in to your account.

It was only when you checked your receipt that you remembered you'd paid the rest on your Love2Shop cards - and the money had been put straight back on to them. 

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

Instead they are pre-paid cash cards, which have been loaded with a set amount of money - though most people who are given them don't realise, or know the difference. 

Most people bin them after spending the balance, but the account remains open until the card expires - usually after a year - even though the balance cannot be topped up. 

It is a small distinction, but explains why the money is able to be sent back to the card as a refund. Argos simply followed the usual retailer policy of refunding money back to the card it came from. 

You told me you phoned Argos five times to ask for help, spending hours on hold. I do hope you replaced your coffee machine, as it'd be a struggle 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 keep pursuing this,' you said. 'I can't believe that we are expected to retain empty gift cards'. 

Argos said that if you had the full serial numbers for the vouchers it may have been able to help, but you didn't - and it would not, or could not, provide them to you. 

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

I felt you'd made an honest mistake, so I contacted both retailers to ask if they could help reunite you with your coffee machine cash. 

I am pleased to say that both firms came through with an offer of help. 

Pick a card: Lots of retailers sell them, but it's important to understand the small print

First, Love2Shop said that while it had not been able to locate your serial numbers, it sent you a replacement £50 Love2Shop voucher. 

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

'We understand that sometimes the original cards go missing or get stolen. When this happens, we require evidence of purchase of the original gift card/s.

'We highly recommend that physical, ‘credit card style’ gift cards are registered in order for them to be traced swiftly, should any issues arise.'

Purchasers 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, which also issued a £50 gift card as a gesture of goodwill.

An Argos spokesperson said: 'We have contacted [S.M] to explain that her refund was returned to her original Love2Shop vouchers in line with our terms and for anything further, it's best to contact them directly. 

'However, on this occasion we have issued a gift card as a gesture of goodwill.'

You've ended up with not only your money back, but also a £50 bonus - which should help make up for some of the gift card grief you've experienced. 

I hope it will encourage others to keep tabs on their gift cards, even after they have been spent. Taking a photo of the serial number on your phone is a good idea.  

Love2Shop isn't the only prepaid gift card. One4All is another popular brand, and many shopping centre gift cards also follow this pre-paid card model. 

It is also worth watching out for 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 taking out the money in cash.  

Love2Shop, for example, charges a maintenance fee of £11 per year for any card past its expiry date that continues to hold a balance. 

You can redeem unused money while the card is still valid, as well as up to six years after the card's expiry date. However, there is an £8.90 fee.