MONTREAL- One consumer expert has a suggestion to those thinking of offering gift cards this Christmas: give money instead.
Stephanie Poulin of Option Consommateur said that if buyers were aware of the many clauses that deteriorate the value of the cards, many would think twice.
Take for example the RBC-Visa gift card, which comes with a one-year expiry date. It costs $3.95 to buy, and if it's not spent within six months, it decreases in value $1.50 each month thereafter.
If lost, it costs $15 to replace and if any credit remains unspent at the end of the year, the owner of the card can get charged with a fee that is equal to the entire balance.
So the $103.95 purchase is worth zero if neglected for 12 months.
Poulin suggests that those who absolutely must gift retail cards should read the small print and stick to those which can be spent in a single store, chain or mall.
"There are some cards offered by Visa, Mastercard that have lots of fees and are not as good a deal as the other ones," said Poulin.
The federal government promised in its 2011 budget to tighten up legislation to protect consumers.
Meanwhile it is telling consumers to consult a tip-sheet entitled Prepaid cards: 10 things to consider before buying.
