Gift cards are becoming increasingly popular among consumers. They are often the ideal gift. As long as you know your limits.
The big question: Does my card have an expiration date? In most cases no. The issuer, often a dealer, does not have the right to set a date or depreciation over time. However, the law provides for exceptions.
This means that an important category of cards does not meet this requirement: prepaid phone cards, which often display deadlines.
On the other hand, a distinction must be made between gift cards and prepaid cards. The law only applies to cards purchased by a consumer (including gift cards).
As a result, a retailer who offers you a $50 gift card because you just spent $500 at their store may have a deadline.
On the other hand, certain cards can only be exchanged for a specific good or service: restaurant meal, spa session, book, etc. The merchant can set a deadline after which he can increase the price to account for inflation.
You then have to pay the difference. However, this condition must be clearly shown on the map.
Cost
Certain cards allow you to pay for any goods or services, including prepaid cards from networks such as Visa, Mastercard or Canada Post.
The issuer may charge an administration fee when you purchase the card.
Various fees may apply for cards issued by a shopping center or high street merchant association.
For example, the issuer may charge an administration fee of $3.50 at the time of purchase and a monthly fee of $2.50 after the 15th month (these amounts represent the limits established by law). Over time, these fees add up until the card's balance drops to zero.
Finally, some merchants may reject these cards. Either because their payment system doesn't accept them, or because they only use traditional credit cards, or because they reject plastic money.
A tip: If you receive a gift card, don't wait too long to use it. If the merchant closes its doors, the card will be unusable.
Advice
- Does your prepaid or gift card have a balance of $5 or less? You can request that the difference in money be reduced to zero. Example: The balance on your card is $20, you buy an item for $16, you can request that the merchant give you $4 in cash. This is often incorrectly rejected by cashiers.
- If the service or good offered with the card is no longer offered by the merchant, the merchant must offer you an equivalent good or service (or a new gift card).
- Have you lost your card? Was it stolen from you? The merchant may charge an administration fee for the replacement if its infrastructure allows identifying the holder and determining the account balance. However, you must be informed of this when purchasing the card.