Vouchers

A voucher is a document, code, or electronic record that can be exchanged for goods, services, or monetary value. Vouchers are issued by retailers, businesses, organizations, or governments and are used to transfer purchasing power without immediate cash payment. They can be physical or digital and are commonly used for promotions, gifts, subsidies, or loyalty programs.

Common types include gift vouchers that specify a fixed value, discount vouchers or coupons that provide percentage or amount off, and cash or travel vouchers that can be redeemed toward purchases or services. Electronic vouchers (e-vouchers) are delivered by email, app, or SMS and are increasingly dominant in online commerce. Government or employer-issued vouchers may subsidize education, meals, housing, or transportation.

Redemption typically occurs at checkout or online checkout. Vouchers carry terms such as value, expiration dates, geographic or product restrictions, and whether they are transferable. Some vouchers allow partial redemption or roundups into remaining balance; others forfeit remaining value if not used.

Benefits include motivated sales, targeted marketing, budget discipline, and subsidized access to goods or services. Potential downsides include fraud risk, complexity of terms, inflationary effects on prices, administrative costs, and the problem of unredeemed balances known as breakage.

Regulation varies by jurisdiction. Consumer protection rules address disclosure, expiry, and non-transferability; some markets restrict expiration periods and stacking with other offers. In practice, vouchers are a flexible tool for promotions and social programs but require robust controls to prevent misuse and ensure accessibility.