Many people assume that gift cards are not loaded down with fees and restrictions but thanks to Alberta's five year old gift card law there are exceptions that often trip people up.
Sue Price called CTV Calgary’s Consumer Specialist Lea Williams-Doherty after her gift card was declined when she tried to make a purchase.
Price had a $25 pre-paid Vanilla MasterCard that can be found in most convenience and grocery stores.
She tucked the card away for awhile and then tried to use it at two different stores for purchases worth more than $25.
Both times it was declined and the clerks couldn't tell her why.
She called Vanilla's customer service line and got two nasty surprises.
- First, after six months a $2.50 monthly service fee was being deducted so by the time she went to use it, it was only worth $12.50.
- Second, these cards will get declined every time if the total purchase price is worth more than the value of the card.
In order to avoid being declined, the consumer has to tell the cashier exactly how much is on the Vanilla card and exactly how much you will pay with another card or cash.
The cashier will then have to separate it out at the till in order for the transaction to go through.
"I mean I don't spend my day going through these tabs but if you do it tells you that before you go shopping, you have to check your balance so you can make the necessary adjustments and there's a whole other issue if you're going out for food," said Price.
Customers also must account for a tip when doing the calculations.
Lea says there is an exception in the law for pre-aid VISA and MasterCards issued by banks as opposed to gift cards issued by merchants.
Cards like the Vanilla ones are the worst for fees and restrictions but the big banks pre-paid cards are better.
Lea says that gift cards issued by the actual stores are best if you are trying to avoid fees, expiration dates and hassles.
