They are a popular gift all year long, but you also need to be cautious when purchasing them. Saskatchewan’s financial and consumer affairs authority (FCAA) has three tips to follow when buying gift cards.
Buy from reputable retailers
One complaint the FCAA receives is difficulty using a card. This could be for many reasons, but a common one is the retailer has gone out of business before the gift card could be used.
Officials say when buying a card, you should consider whether the person you are giving it to will be able to use it in a timely manner.
If a business does close, the holders of gift cards become unsecured creditors and may have difficulty getting anything for the card.
Read the fine print
Often, there are restrictions or limitations on the use of a gift card. For example, golf packages are typically restricted to certain days of the week.
Gift cards are typically less flexible than cash and can lose value over time due to inflation.
READ MORE: ‘Debtcember’? 5 tips to avoid racking up holiday debt
No expiry date
Any gift card sold in Saskatchewan cannot have an expiry date. The only exception is if gift cards or certificates were given away for free without payment or consideration. In those cases, cards may have an expiry date.
Once purchased, gift cards cannot carry monthly fees or any additional charges like activation, dormancy or consideration fees.
Anyone who is having difficulty redeeming a gift card can contact the FCAA at 1-877-880-5550.
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