In fact, it’s estimated that over $400 billion in gift cards will be given in 2020, the majority of those being purchased as gifts during the holiday season -- and all told, up to 76 per cent of adults decided to purchase at least one gift card or e-card over the past year and 93 per cent of consumers have purchased a card at some time in their lives, according to www.moola.com.
That translates into big business for many retailers, especially those using ‘closed loop’ cards that have the person receiving the gift able to purchase from that specific business. ‘Open loop’ cards -- such as prepaid Visa and Mastercard cards -- are another popular option, allowing consumers to buy from wherever they wish.
It will come as no surprise that the most popular card last year was to Amazon.ca, with cards and certificates to local restaurants also proving very popular.
There is a rather surprising statistic surrounding the little plastic cards or paper ducats, though -- the number of them that go unused year-to-year. A third of people have received a gift card they never used, with an estimated $3 billion not being spent in 2019 alone.
The good thing is, as revealed by the Saskatchewan government on Tuesday afternoon, if you have a card that’s been sitting around for awhile, odds are very good you can still use it -- the Consumer and Business Practices Act in the province bans retail gift cards from having an expiry date unless it’s issued for a charitable purpose or if nothing of value is being provided by the card.
Of course, the way to ensure the card is used is rather simple: cash it in as soon as you can, which has the additional bonus of ensuring the business will still be active.
The province’s Financial and Consumer Affairs Authority passed on a handful of other tidbits about gift cards in their news release.
- Generally, gift cards have no additional fees. Under the Act, most businesses cannot charge extra fees for things such as fees for activation or added service fees to purchase the card or to use the card. An additional fee is allowed if the consumer is replacing a lost or stolen card, or if the consumer wishes to customize their card.
- No sales tax can be charged when buying a gift card. Retailers cannot charge PST or GST when you buy a gift card. Check your receipt to make sure tax is not charged. Applicable taxes will be charged on items or services you purchase using your gift card.Make sure your card is not damaged or tampered with.
- Do not purchase a gift card that has a damaged or torn package. If it looks as though the card has been tampered with, bring it to the attention of a store employee.
For more information about gift cards, visit the FCAA's website.
