If you’re like many Canadians, you have received a gift card or two in recent years. These cards allow you to spend a certain dollar amount at a retail store. You can usually get them right in the store or online. You simply pay the retailer whatever the card is worth. You can use cash, a credit card or debit card.

The big difference between a prepaid credit card and gift card is that you can use a gift card only at the specific retailer whose name is on the card. You can use a prepaid credit card used anywhere that accepts credit cards. Learn more now about what types of credit cards you can get.

Gift card rules

There are rules in Ontario about expiry dates and fees on gift cards. These rules apply to most pre-paid gift cards, paper gift certificates and gift cards that can be reloaded. The cards must be bought in Ontario.

Did you know?

• Most gift cards and certificates that have a set dollar value cannot expire. Your gift card keeps its value until you use it, as long as the company that sold it to you is in business.
• The seller of the gift card must clearly disclose or display any conditions or limits on using the card before you buy it.
• Service fees are restricted. You may be charged a fee to customize a gift card or replace it. You cannot be charged an inactivity fee or a fee to reactivate your gift card.

Exceptions not covered under these rules

• Loyalty cards - such as those you use to collect points or rewards.
• Gift certificates for specific goods and services - including spa packages or lessons. These can have an expiry date.
• Free or discount cards - where a gift card is given away or sold at a discount.
• Prepaid phone cards - although companies that provide phone cards must disclose the card’s terms and conditions clearly, in a way that consumers can understand.
• Prepaid credit cards - although they work like gift cards, they are not covered under the same rules.
• Gift cards you buy or receive to support fund-raising - including cards from a charity or non-profit organization.
• Mall cards - which are accepted or may be redeemed at more than one unaffiliated store in a shopping centre. Special rules apply here, including:
• Stores at shopping malls can charge dormancy fees on gift cards and other certificates that are redeemable at more than one unaffiliated store.
• When purchasing mall gift cards, consumers will pay a maximum one-time activation fee of $1.50. They will enjoy the full value of these cards for up to 18 months. After that, a dormancy fee of up to $2.50 per month kicks in. This reduces the value of the card.

Remember: gift cards are not the same as cash.

Certain rules may apply. Be sure to find out if there are any limits attached to a particular gift card before you buy it.