Gift cards
Did you know that most gift cards are not allowed to expire or have fees? BC’s gift card law speaks to expiry dates when fees can be charged, and what information must be disclosed to you.
The law uses the term “prepaid purchase card” and defines it as “a card, written certificate or other voucher or device with a monetary value that is issued or sold to a person in exchange for the future supply of goods or services to a consumer, and includes a gift card and gift certificate”.
Read the Prepaid Purchase Cards Regulation.
Read the Business Practices and Consumer Protection Act.
When you cancel or return a non-refundable good or service (such as a non-refundable plane ticket or piece of clothing), and the business gives you a store credit (or a voucher that is intended as credit) it is allowed to have an expiry date because it is not considered to be a gift card.
Can my gift card expire?
Gift cards, vouchers or credits for a specific dollar amount, for example, a $50 gift card to a spa, are not allowed to expire.
Expiry dates are allowed for:
- gift cards issued for a specific good or service. For example, a gift certificate for a manicure can expire.
- gift cards that were sold at a discount amount. For example, if a business discounted its services during a promotion or you bought a gift certificate at an auction.
- gift cards sold for charitable purposes
- if the gift card was bought before 2009 (when the law came into force)
When you cancel or return a non-refundable good or service (such as a non-refundable plane ticket or piece of clothing), and the business gives you a store credit (or a voucher that is intended as credit) it is allowed to have an expiry date because it is not considered to be a gift card.
What kind of fees can be charged for a gift card?
When you buy a gift card, you may be charged extra fees for some services.
Fees can be charged for:
- personalizing a card
- replacing a lost or stolen card
- “mall cards” that can be used at multiple unrelated businesses. For example, a card that can be used throughout a shopping mall.
What about mall cards?
Mall cards are most often issued for a shopping centre where you can use them towards purchases at multiple stores within the mall. Mall cards are allowed to charge fees, but there are some rules about these charges:
- they need to let you know about the extra fees
- mall cards can charge up to a $1.50 service fee at the time of purchase
- if you do not use your card within 15 months, a monthly service charge can be applied to the remaining balance. This is called a ‘post-purchase fee.’ This information needs to be included on the card but you should always ask about these charges before deciding to purchase a mall card.
- the monthly post-purchase fee cannot be more than $2.50 per month.
If after 15 months you need more time to use the card, you can ask the issuer to delay monthly service charges by an extra 3 months.
By law, you must be told about any restrictions, limitations, terms and conditions on the card. The issuer must let you know the rules about using, redeeming and replacing your card. They must also include information about any charges that will apply.
What about prepaid credit cards?
Prepaid cards that are issued by a financial institution, for example, a prepaid Visa card, are not covered by BC’s gift card laws. These cards are issued by federally regulated financial institutions and are overseen by the
Financial Consumer Agency of Canada.Not sure if your card was issued by a federally regulated financial institution? The easiest way to find out what type of card you have is to read the information on the back. If it was issued by a bank, trust or loan company, you likely have a general-use prepaid card. You can check to see if the institution found on the back of your card is listed on the Office of the Superintendent of Financial Institution website.
What’s the difference between a gift card and store credit?
Store credit is not the same as a gift card. Store credit is usually issued to you by a business when you return or cancel a non-refundable good or service (such as a non-refundable plane ticket or piece of clothing). If a business gives you store credit (or a voucher that is intended as credit), it does meet the definition of a gift card and can have an expiry date.
Gift cards are usually purchased from a business directly in exchange for the future supply of goods or services.
What to do if your gift card expires but it shouldn’t
Remember, when you cancel or return a non-refundable good or service (such as a non-refundable plane ticket or piece of clothing), and the business gives you a store credit or a voucher that is intended as credit, it is allowed to have an expiry date because it is not legally considered to be a gift card.
If your gift card or voucher for a specific dollar value (i.e. $50 to be used with the company at a later date) has an expiry date, we recommend the following steps:
- Go back to the business and notify them that your gift card or voucher can’t expire using our Notification of an expiry date prohibition on prepaid purchase cards form. (Reference: Part 4.1, Prepaid Purchase Cards, section 56.1-56.2 of the Business Practices and Consumer Protection Act). Ask that the business reissue the gift card or voucher without an expiry date.
- If you still can’t resolve the expiry date issue with the business, you can file a complaint with us. Please try to work it out with the business first before contacting our office.
Remember that this process applies if you live in BC or if you live out of the province but the business you dealt with is located in BC.
Read our consumer tips on gift cards.
