Do gift cards expire? It’s not uncommon to forget about your gift cards, especially if you’ve stashed them out of sight. Weeks, months, and even years may pass before you stumble upon unused gift cards. By the time you find a gift card and decide to use it, you might worry that it will be declined at checkout.
Let’s find out more about gift card expiry dates and the rules that govern them across Canada.
Most gift cards do not have an expiry date. That said, some cards might, such as the following:
Whether or not gift cards expire depends on the province or territory.
Gift cards bought in Alberta do not expire, and they do not come with fees that would reduce their value over time. Gift card rules are governed by Alberta’s Gift Card Regulation, which falls under the Consumer Protection Act. Any businesses that violate the Regulation, including imposing expiry dates, could be fined.
The following card types are subject to the Regulation:
The following card types are not subject to the Regulation:
In British Columbia, most gift cards do not expire. Meaning the funds in the card will retain their value and can be used at any time. In fact, businesses in British Columbia are not usually allowed to assign an expiry date on gift cards bought in the province. That said, some exceptions apply, including the following:
Businesses are not allowed to put expiry dates on most gift cards, as per the Consumer Protection Act. All conditions of the gift card must also be stated clearly and visibly in writing. However, exceptions apply for some cards, such as the following:
Most businesses cannot charge extra fees under the Act, such as the following:
Expiry dates are not permitted on any type of gift card purchased in Quebec. Businesses are also not allowed to charge fees for using or replacing gift cards.
Expiry dates are not allowed on gift cards bought in Manitoba, except for the following:
In addition, merchants cannot charge fees on gift cards, except in the following scenarios:
Under Nova Scotia law, gift cards cannot have expiry dates. Service fees are also not allowed, except to replace or customize a card. This means inactivity fees cannot be charged if the card is not used within a certain time frame. Similarly, the value of the card will not decrease with time and can be used at its full value at any point in time.
Under the Gift Cards Act in New Brunswick, merchants cannot place expiry dates on gift cards. However, some exceptions apply, such as the following:
In Newfoundland, gift card expiry dates are not allowed. However, there are a couple of gift card types that can expire:
In addition, no fees can be charged on gift cards, except on cards issued for promotional purposes.
Gift cards don’t expire in Saskatchewan, except cards purchased for promotional purposes. No extra fees can be charged, either, with the following exceptions:
Merchants are not permitted to place an expiry date on gift cards. In fact, under the law, even if the card has an expiry date, it can still be used as though it does not have one.
Similarly, they cannot charge additional fees aside from the initial purchase price.
Prepaid cards and gift cards work in a similar way in that they are both loaded with a dollar value and can be used to make purchases at merchants. But there are two specific differences: how long each card lasts, and where each card type can be used.
Gift cards are preloaded with a specific dollar amount. Once you’ve used up that amount, gift cards are typically no longer useful. Further, gift cards are typically issued by a specific store or family of stores, which means you can only use your gift cards at these particular merchants.
Prepaid cards are similar to gift cards in that they are preloaded with a certain dollar value. The biggest difference is that once the value has been used up, prepaid cards can be reloaded again and again. Prepaid cards are also often multifunctional and can be used in a number of ways:
Further, prepaid cards have a network logo, such as Visa or Mastercard, which means the cards can be used anywhere these brands are accepted. They also usually come with monthly maintenance fees.
Gift cards are available for purchase from any merchant that offers them. Some stores sell only their own gift cards, while others, like department stores or supermarkets, sell a variety of gift cards from different merchants. You can buy them in person, online, or by telephone. Gift cards are also available at Canada Post locations.
To get the most out of your gift card and steer clear of potential issues, consider the following tips before buying one:
Gift card scams are on the rise, so it’s important that you recognize the signs of fraud before buying a card. Here are a few things to consider:
Most stores don’t allow refunds on gift cards. Before you buy a gift card, verify the store’s refund policy. Vendors can choose their own policies, though the rules may also vary by province.
Typically there are no fees charged by vendors to buy or use gift cards. However, in some provinces or territories, merchants are allowed to apply fees in the following circumstances:
When you buy a gift card, make sure that the cashier activates it at the point of sale. Otherwise, the card will not be active and won’t work when you try to use it.
Gift cards are available from big network brands, like Visa and Mastercard, as mentioned. They are convenient, since they can essentially be used as cash where Visa or Mastercard are accepted, but they’re not as handy as you may think.
These network gift cards earn a profit from fees. That means you’re paying a premium just to have a card in your hand, when you could easily buy a regular merchant gift card without the added fees.
Merchants sometimes offer gift cards at a discount, so keep an eye out for these sales when shopping for a card.
Provinces across Canada have rules that govern how merchants treat their gift cards, and in most cases, expiry dates are not allowed. That means if you stumble upon a long-lost gift card, odds are it’s still viable and can be used at the applicable merchant.
Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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