Not all gift cards are made the same

There’s only five more days to find that perfect Christmas gift for those on your list; and as stores get picked over and ideas run thin, chances are you’ll reach for a gift card.

However, it’s important to know that not all cards are made the same.

There are two kinds of gift cards – those that cater to a specific store and pre-paid credit cards that can be used to buy at multiple locations.

Retail gift cards are regulated by provincial law, meaning they cannot have expiry dates and retailers cannot charge in-activity feeds if they aren’t used for 6-months or more.

You could be charged a fee to activate the card; however, very few retail gift cards carry this fee.

These rules also cover gift certificates and vouchers, but not loyalty cards or phone cards.

The second type of gift card, a pre-paid credit card, are not regulated because they are issued by banks, credit card or finance companies.

The majority of these cards carry activation fees between four and seven dollars. If the cards still have a balance six months after activation, the card holder will be charged a monthly maintenance fee, anywhere from two to four dollars.

Shopping malls also offer pre-paid gift cards, but they fall into a grey area and will depend on who issues the card. If it is a bank that issues the card, it may come with additional fees and expiry dates, so it is important to ask before you purchase one.

Those looking for more information on gift card rules in Canada, they can visit the Financial Consumer Agency of Canada’s website for gift and pre-paid card tips, or the Alberta Consumer Services’ website for gift card rules.