When University of Victoria student Stephanie Fromberg got a Citizen's Bank MY Treat Visa gift card for her birthday she was excited.
But she soon learned using the card was not straight forward, with restrictions like having to know her balance at all times.
"You had to have a running tally in your head at all times on what you're spending," Fromberg said. "It just became a little tricky to use."
Many merchants don't know how much is on the card either.
The card warns that a purchase for a dollar value amount higher than your available balance will be declined.
Another complication is that if you use it at a restaurant you have to allow 15 per cent above the price of the meal for a tip. So if you want to purchase a $20 meal you need $23 on the card even if you are planning to tip in cash.
Finding your balance is free online but if you call the 1-800 number to check you pay a 50 cent fee. An additional 75 cents is added if you talk to a live operator, so the total fee becomes $1.25.
After six months there are more fees, including a $1.50 a month maintenance fee. When you hit the expiry date companies can take whatever is left.
Also, if you lose your $25 card there is a $20 fee to replace it.
Consumer Protection B.C. says those credit card type of gift cards are exempt from the law in B.C.
Cards or gift certificates for a specific service may have an expiry date and they are not required to give you any minimum time to use it before it expires.
Mall cards can charge a $1.50 purchase fee and a $2.50 monthly fee after 15 months.
The only cards that are required to have with no fees and no expiry dates are from specific retailers for general use in the store like Pharmasave cards or ones from other retailers you see for sale everywhere. In other words, cards that are just like cash.
The bottom line with gift cards is to know the rules before you buy so you can avoid the fees and other complications.
With a report from CTV British Columbia's Chris Olsen
