Shopping Malls Exempt From Dropping Expiry Dates On Gift Cards
Before you get gift card happy this holiday season, there's something you should know.
You may recall when the Ontario government banned gift cards from having an expiry date back in October because it wants "consumers to know that gift cards are worth the money they paid for them, regardless of when those cards are used," according to Consumer Services Minister Ted McMeekin.
But it looks like that rule won't apply to shopping malls over the shopping frenzy this month as they've been granted a temporary exemption from the new law until the New Year.
Some malls are still charging a $1.50 processing fee, while others are subject to a monthly two dollar maintenance fee.
I've never understood why gift cards had expiration dates to begin with. In my mind, that's the equivalent of going to the ATM and withdrawing cash with an expiration date, saying must be spent by xx/xx/xx. I mean come on shopkeepers, I've paid for the card, you have the money, let the bearer spend the card when ever they damn well please. It makes no sense to me.
But then again, I've always thought the concept of gift cards made little sense to begin with. As a comedian, whose name I cannot recall, so aptly put it, and I'm paraphrasing here, you know for the same twenty dollar gift card, you could have gotten me twenty bucks. So much for telling me not to spend it all in one place, it doesn't seem like I have a choice now, do I?
What's worse is it says about the giver that they went all the way to a store, but when they got there, were too lazy to figure out what to get.
Some might argue that giving cash may seem thoughtless and crass. I don't see how it is crass, the value of the card is printed in large bold text for the whole world to see; we know exactly how much it cost. Also, by giving someone a gift card, you're telling them where to shop... that seems a lot less thoughtful.
A thought just occurred to me. If one were to buy, say a $20.00 gift card, after taxes, that should come up to something just shy of $23.00. Now, when the recipient purchases something with that same gift can they buy something with a $20.00 sticker value and simply walk out the store, or would they have to pay taxes on that again? Would the government be double dipping on an item that was essentially only sold once?
4 comments:
I don't believe gift cards are taxed.
I think this new legislation is a step in the right direction, but as you mentioned, the exemption for mall gift cards doesn't make sense.
What else doesn't make sense is why you can't return the gift card for cash. It IS cash!
I don't believe gift cards are taxed.
Good to know, thanks Nhi.
What else doesn't make sense is why you can't return the gift card for cash. It IS cash!
YEAH!!! What's up with that?
Strictly from an accounting perspective, it's revenue on their books, but no reduction in inventory until it is used for merchandise. The gift card holder should rightfully be able to exchange the gift card for cash. It's so black and white to me.
Unless of course, the Gift Card is treated as inventory itself, and when an item is purchased with said card, it's treated as an exchange? Hmm, that doesn't seem right either as most store won't exchange products after thirty days... Or maybe we we're over looking the obvious; they're money grubbing soulless cash whores!
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