Ontario woman 'shocked' when her $250 gift card expires

An Ontario woman says she was “shocked” when her $250 pre-paid Visa gift card expired, despite a provincial ban on gift card expiration dates.

“I was shocked and said to the cashier I didn’t know gift cards could expire and she said she didn’t know that either,” said Carola Della Mattia of Brampton, Ont.

The Ontario government banned gift cards from expiring 15 years ago after many complaints from the public, but what some people don’t realize is that certain gift cards can still expire and leave them worthless.

During the pandemic when the economy virtually shut down, many gift cards went unused as many stores and restaurants were closed.

Della Mattia said her husband gave her a $250 pre-paid Visa gift card for Christmas in 2019.

"We kind of set it aside because we were going to take the family out for dinner and then COVID hit and I put it in a drawer and completely forgot about it," said Della Mattia.

Della Mattia found the gift card last October and went to a store to use it and was shocked to be told it had expired.

"I think people need to know that these cards can expire and you need to use them right away, so don't put them in a drawer and save them for a rainy day because they do expire," said Della Mattia.

Della Mattia found out that after one year a $3 service fee was deducted each month and the card had an expiry date of August 8, 2022.

Under the Ontario Gift Card Act gift cards can expire for spas, massages, manicures, salons or for charitable purposes. Pre-paid credit cards, loyalty cards or cards used to collect rewards are not covered by gift card rules.

Pre-paid credit cards may also have activation fees and maintenance or dormancy fees deducted each month.

When CTV News Toronto contacted pre-paid Visa gift cards, the Blackhawk Network, which handles the cards, said in a statement, “We want every shopper to have a great experience with gift cards. We’re disappointed to see this wasn’t the case in this instance.”

“Consumers choose The Perfect Gift Visa Prepaid Card because it allows the recipient the ultimate choice in how they’d prefer to spend their gift; for example, it can be accepted online and in-store where Visa is accepted. It is a preferred gift over cash because it allows the recipient to easily shop and spend online as consumers move towards more convenient, cashless and contactless payment methods. In the event the card is lost or stolen, we do not charge any fees for replacement cards.”

“For consumers’ benefit, there are stringent regulatory requirements in Canada relating to the disclosure of any such fees. These regulations allow for maintenance fees to be charged, provided they are not imposed until after a period of 12 months from when the card is activated and that they have been disclosed in accordance with the regulations. These fees are disclosed prominently on the back of the packaging and can be seen by the consumer prior to purchasing the card.”

“These regulations also require that any expiry date be set out on the product but that the cardholder’s right to these funds may not expire. This means that while the plastic card itself has an expiry date, the funds themselves do not expire. If a cardholder has a balance remaining on his/her card upon expiry, the cardholder can call the number on the back of the card to get a replacement card with the then remaining balance free of charge.”

After CTV News Toronto contacted Blackhawk Network about Della Mattia’s situation the company sent her a gift card worth $250 that she plans to use right away.

"Well I’m thrilled I never expected this to happen, I thought once the card expired that was it so this is great news,” said Della Mattia.

If you're holding onto gift cards you may want to use them so you don't lose them.

A study by the Retail Gift Card Association in the U.S. found about two to four per cent of gift cards are never claimed, which is pure profit worth billions for retailers.