Pre-paid purchase cards can be a great option for that hard-to-buy-for relative or teenager.

The new rules around pre-paid purchase cards (gift cards or gift certificates) came into effect on November 1, 2008, and apply only to cards purchased after that date. The new rules state that cards may no longer be allowed to have expiration dates or to charge fees, with a few exceptions.

Consider the following tips when deciding whether to buy a pre-paid purchase card.

1. Educate yourself about the exemptions to the law. There are certain cards that are allowed to have expiration dates or charge fees, such as mall cards. Find out the details ahead of time, so that you can let the recipient of your gift know whether to expect a potential fee or expiration date.
2. Get the details. Cards with expiration dates and fees must contain disclosure information. It is always a good idea to read the fine print, so you – or the person you are buying for – aren’t surprised by the terms and conditions.
3. Ask questions of the retailer. You may want to know if the card is redeemable online or if the store even has the option to shop through their website. Prior to purchasing the card, be clear about what how you want the card to be used and don’t be shy about asking questions.
4. Buy from a trusted source. Be careful and do your research if you are considering buying a pre-paid purchase card online, from an unknown auction site or from a company you have never heard of.
5. Keep your receipts. It’s always a good idea to keep your receipts for any consumer transaction.

Both consumers and businesses have rights and responsibilities under BC law.   To obtain more information about the pre-paid purchase card regulations or to access Frequently Asked Questions about the law, click here.

Consumer Protection BC enforces the pre-paid purchase card legislation. You are encouraged to contact the business directly to resolve any issues. If the problem can’t be resolved, contact the Consumer Protection BC Inquiry Centre. Consumer Protection BC will work with businesses to address any issues.

The key to being a smart consumer is knowing what questions to ask and reading the fine print before entering into any kind of transaction. Happy shopping!