Rules about gift cards in Ontario are catching people off guard

Not all gift cards are created equal The ban on expiry dates on gift cards does not apply to all gift cards depending on their purpose, and fees may be applied.

Many people who received git cards as presents before the pandemic tucked them away in their wallets or desks as many shopping malls and stores were closed.

Some people, who are now going to use them in stores, are getting a surprise when they’re told their current value.

“When you receive a gift card and it says it's worth a certain amount of money, it should be worth that amount of money," said Barry Wyner of Burlington, Ont.

Wyner said his wife was given a Visa pre-paid gift card for $200 dollars about two-and-a-half years ago and during the pandemic it was put away, but when they recently went to use the card they were shocked at it’s current value.

“When we went to the store that’s when we found out it was worth only $74 dollars instead of the original $200," said Wyner.

Wyner said he called the number of the back of the card and was told that his card expired, but that he could get a replacement. That replacement card, however was only worth $74.

Stephanie Cecchini of Vaughn was given two mall gift cards as presents about three years ago worth $100 and $50.

During the pandemic she decided to stay clear of shopping centers, but said she recently went to use the cards and was also baffled when she was told they were both worthless.

“When I called they said I had a zero balance on both cards," said Cecchini. “I saw $2.50 was taken out every month for nothing."

Following complaints from consumers, the Ontario government brought in legislation 15 years ago to ban expiry dates on gift cards, but the ban does not apply to all gift cards depending on their purpose.

Do gift cards expire?

Under the Ontario Gift Card Act, gift cards and gift certificates can expire if they are for spas, massages, manicures, salons or for charitable purposes.

Pre-paid credit cards, loyalty cards or cards used to collect rewards are also not covered by gift card rules.

Shopping mall gift cards keep their value for 15 months then fees can be applied at $2.50 per month.

Pre-paid credit cards may also have activation fees, maintenance fees or dormancy fees that are deducted each month, 12 months after the card is purchased.

So if you have gift cards for a service or a pre-paid gift card that you've been holding onto, you may want to check the fine print.

Wyner says he'll never buy one as a gift for anyone.

“I think it's most unfair," Wyner said. "On the packaging it says, 'it's the perfect gift,' but it's far from the perfect gift if you don't use it."

A survey done earlier this year by Square, a payments company that tracked gift card spending, found as many as 45 per cent of gift cards that have been purchased had not been used.

You may want to see if you have gift cards in your desk, wallet or purse to see if they are still worth what you think they are.