Frequently Asked Questions About Prepaid Purchase Cards – Information for Consumers

A prepaid purchase card is an electronic card, a written certificate or other voucher or device with a monetary value, including a gift card and gift certificate. It is issued or sold in exchange for the future purchase or delivery of goods or services.

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The requirements came into effect on November 1, 2007. Beginning November 1, 2007, keep a copy of the receipt showing when the card was purchased or received in case you have any problems about fees or expiry dates that aren’t allowed, or problems where the seller or issuer hasn’t provided the required information with the card

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The requirements do not apply to cards purchased or received before November 1, 2007. Beginning November 1, 2007, keep a copy of the receipt showing when the card was purchased or received in case you have any problems about fees or expiry dates that aren’t allowed, or problems where the seller or issuer hasn’t provide the required information with the card.

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Expiry dates are not allowed on prepaid purchase cards except:

• if the card is issued or sold for a specific good or service (ex: a manicure)
• if nothing of value is exchanged for the card at the time of issue, (ex: cards issued for a promotional or charitable purpose, or as part of a reward or loyalty program).

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If there is an expiry date on a prepaid purchase card bought after November 1, 2007 that is not allowed, the card remains in effect as if there is no expiry date. Contact the Consumer Protection Office for assistance.

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When you buy a prepaid purchase card, including a gift card or gift certificate, or are issued one, you must be given information about the card as outlined below:

• All restrictions, limitations, and conditions on the use of the card, including any allowed fee or expiry date, and
• A description of how the holder can get information about the card, including any balance left on it.

The information must be given clearly and in a way that it will likely be brought to the holder’s attention.

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If you did not get the required information with the card contact the Consumer Protection Office for assistance.

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No fees can be charged except:

• A fee to replace a lost or stolen card
• A fee to customize a card (ex: a personal photograph on the card)
• A maximum $2.50 monthly fee if a card has not been used for 12 months (see examples in question 9), only if the card is one that lets the holder purchase goods or services from multiple unaffiliated sellers (ex: different retailers located within a shopping mall).

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The rule is that a maximum of a $2.50 monthly fee can be charged only after the card has not been active for 12 months.

Example 1:

A card is purchased/activated on November 1st, 2007 and is never used.

The card could be subject to a maximum monthly fee of $2.50 starting 12 months after the date of purchase (or November 2nd, 2008).

Example 2:

A card is purchased/activated on November 1st, 2007 and is used on February 10th, 2008 and not again.

The card could be subject to a maximum monthly fee of $2.50 starting 12 months from the last use (or February 11th, 2009).

Example 3:

A card is purchased/activated on November 1st, 2007 and is used on February 10th, 2008. It is used again on August 20th, 2009 and not again.

The card could be subject to a maximum monthly fee of $2.50 starting 12 months from the first use (or February 11th, 2009). The fee would stop upon the next use of the card (or August 20th, 2009). The card would be eligible for a fee again 12 months from the last use (or August 21st, 2010).

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The rule is that a card is considered to be active when the funds are loaded on the card at the time of purchase, or when the card is used by the holder to purchase goods or services.

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If you are charged a fee that isn’t allowed, it is your right to get a refund of the fee. You may request the refund by giving notice to the supplier of the card within one year after paying the fee. It is recommended that you give notice in writing by a method where you can prove that the notice was given, such as registered mail. If you don’t receive the refund contact the Consumer Protection Office for assistance.

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You can ask the person who purchased it when it was bought, or check the information you received with the card to see if there is a purchase date shown. If you still can’t find out the date it was purchased, contact the supplier of the card. See question 6 for details on what information must be provided to consumers.

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If nothing of value is given for the cards at the time they are issued, cards such as those issued for charitable or promotional purposes, or as part of a reward or loyalty program, may have an expiry date and a fee may be charged. The providing of information requirements outlined in question 6 do apply.

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The requirements do not apply to prepaid phone cards, as they fall under the jurisdiction of the federal government.

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The requirements do not apply to prepaid purchase cards issued under an agreement between a bank and a consumer, as those cards fall under the jurisdiction of the federal government.

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Issuers or sellers of prepaid purchase cards that don’t comply with expiry date requirements, providing of information requirements, and the limit on fee requirements, may have to pay a penalty ranging from $1000 to $5000. They may also be prosecuted in some circumstances.

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Consumer Protection Office
302–258 Portage Avenue
Winnipeg, Manitoba R3C 0B6

• Telephone (Winnipeg and area): 204-945-3800
• Toll-free within Manitoba: 1-800-782-0067
• Fax: 204-945-0728
• Email: consumers@gov.mb.ca

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Consumer Protection Office
302–258 Portage Avenue
Winnipeg, Manitoba R3C 0B6

• Telephone (Winnipeg and area): 204-945-3800
• Toll-free within Manitoba: 1-800-782-0067
• Fax: 204-945-0728
• Email: consumers@gov.mb.ca

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The regulation requires completion of a review of all requirements by April 30, 2009. If you have suggestions for improving the requirements for prepaid purchase cards please forward them in writing to:

Consumer Protection Office
302–258 Portage Avenue
Winnipeg, Manitoba
R3C 0B6

• Fax: 204-945-0728
• Email: consumers@gov.mb.ca

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