Christmas Gift cards
How to take full advantage of your gift cardsJanuary 10, 2013
By Sheryl Smolkin
Whether I am giving or receiving a gift, I have mixed feelings about gift cards. I like receiving cash because I can spend it on whatever I want, but often I just deposit gift cheques to my VISA card and don’t buy anything special with the money. Giving gift cards requires a bit more thought than just putting $50 in an envelope, but they are easily lost or misplaced.
The big problem used to be that many gift cards had expiry dates. However, since 2008 Saskatchewan (like most other Canadian provinces) has had legislation prohibiting expiry dates on all prepaid purchase cards and banning inactivity or dormancy fees that reduce the value of all cards bought and sold in the province.
Nevertheless, there are a few exceptions to the general rule:
- An expiry date is allowed for prepaid purchase cards that are issued for charitable purposes, e.g. a charity auction.
- An expiry date is allowed where the consumer has not given anything of value in exchange for the gift card or gift certificate, e.g. a retail business gives employees gift cards for store purchases as a holiday gift.
- Retailers can charge a fee for replacing lost or stolen prepaid purchase cards.
- Retailers can charge a fee for “customizing” a prepaid purchase card by adding personalized elements like names and logos.
So even if you excavate your bottom drawer and find a stash of gift cards that are several years old, chances are they are still useable. But what if there is absolutely nothing you want to buy from the establishments that issued the cards?
Here are some ideas:
- Re-gift the card to your brother because you know he is renovating his house and definitely can use something from a hardware store.
- Sell the card to a friend who frequently buys from a clothing store that doesn’t sell anything in your size range.
- Use the card to buy a wedding present for your cousin who has registered and made a selection at the gift store where the card was purchased.
- Donate gift cards for books, cosmetics etc. to registered charities like women’s shelters and seniors centres. Registered charities can issue official donation receipts for income tax purposes for the eligible amount of gifts of gift certificates and gift cards under specific circumstances.
And if all else fails, you can sell gift cards on several online websites like cardswap.ca. CardSwap also accepts store credits for returned merchandise accompanied by the receipt of purchase.
Here is how CardSwap works:
- Enter the details of your gift card into the online form. There is a list of over 450 merchants in the pre-populated form, but if you don’t see the company that issued your card you can request that it be added.
- Mail your gift card to CardSwap using their free pre-paid shipping label. You will receive an email confirmation when they receive your gift card.
- CardSwap will mail you a cheque, credit your account with SwapPoints or the amount can be deposited directly to your PayPal account. A PayPal deposit is instant, but further charges may apply. If you select points instead of cash, you can redeem your SwapPoints for gift cards from your favourite Canadian merchants sold online by other CardSwap users.
Another Canadian website where you can buy and sell gift cards is giftah.com, developed by several University of Waterloo students. Before selling your gift cards online do your own due diligence to satisfy yourself that the site is on the level and delivers what it promises.
Do you have any other ideas how to use unwanted gift cards? Send us an email to firstname.lastname@example.org. If your idea is posted, your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use or sell a gift card that you forgot about before you read this article.
If you would like to send us other money saving ideas, here are the themes for the next three weeks:
|17-Jan||Online shopping||Ways to save by shopping online|
|24-Jan||Home insurance||What does your home insurance cover?|
|31-Jan||Winter vacation||7 ways to protect your credit cards on vacation|