Gift cards grow in popularity
After apparel, cards are 2nd choice for giving
Gift cards have overtaken toys, booze, electronics and games as a top Christmas gift this year. Only clothing beats gift cards on the list of products Canadians want this Christmas, according to Maritz Research Canada.
"The flexibility and convenience associated with gift cards continues to make them an evermore popular gift to give and receive," said Rob Daniel, managing director at Maritz.
Daniel told CBC News that gift cards are especially popular with women. Twice as many women said they wanted gift cards than jewelry, according to the survey.
"Maybe the best thing possible is a gift card from Birks," he joked.
While gift cards are popular, there are some downsides.
Most provinces prohibit expiry dates
In order to ensure gift cards are used in a timely manner, some retailers attach expiry dates to them. However, most provinces have legislation to protect consumers from losing the card's value.
B.C., New Brunswick and Ontario allow retailers to charge a monthly fee on unused balances, in certain circumstances.
Most other provinces forbid charging fees to gift card customers, but there are exceptions.
Alberta law allows a one-time fee for activating a card at time of purchase, while B.C. and Ontario allow fees for customizing or replacing a card.
Consumer protection agencies warn consumers they should only buy gift cards from trusted sources. Purchasing from online auction sites such as eBay could result in a card that is stolen, counterfeit or was obtained fraudulently.
Buyers are also advised to include the original receipt when giving the card, in case it becomes lost or stolen.
When buying a gift card, consumers are warned to always check the terms and conditions before trading their cash for plastic.
The Maritz survey results are based on online interviews with 1,500 Canadians. The results are considered accurate within 2.5 percentage points 19 times out of 20.