Restaurant gift cards in Ontario and BC: expiry dates, fees and what to check before you buy

A restaurant gift card is an easy present, and a good way to support a local business. Before you buy one, it helps to know what the law says in Ontario and British Columbia, and what to check at the till. The current regulations in each province are the final word.

Can a restaurant gift card expire?

In British Columbia, the general rule is no. Under the Business Practices and Consumer Protection Act and its Prepaid Purchase Cards Regulation, a business may not sell a prepaid card, such as a gift card or certificate, with an expiry date. A card sold with one can be used as if it had none. Consumer Protection BC publishes guidance.

Ontario has its own rules under the Consumer Protection Act and its regulation on gift cards, which restrict expiry dates and fees that reduce the card's value. In general, Ontario bans expiry dates and fees that reduce the value of a dollar-value gift card, with exceptions for a card good for one specific service, cards for charitable use and free promotional cards. A fee for customizing or replacing a card is allowed. The rules can change, so check the Ontario government's consumer pages.

What are the exceptions?

In British Columbia, the regulation exempts some cards, including:

• cards for a specific good or service, rather than a dollar amount
• cards issued for a charitable purpose
• promotional cards given away free, or sold for less than their face value

In Ontario, summaries describe exemptions for certain promotional cards, cards for a specific service and cards issued by financial institutions. A restaurant offering bonus credit, such as an extra amount when you buy a card, may attach conditions to the bonus. Read the terms.

What should you check when you buy a restaurant gift card?

• The amount. Make sure the face value is right on the receipt.
• Terms on the card. Look for an expiry date and ask what it means.
• Whether it is tied to one location. A card for a restaurant group may work at several branches, or only one.
• Bonus credit. If a card gives you extra, ask whether the bonus has a different expiry or rules.
• Whether it is physical or digital. Digital cards are easier to trace if they are lost.

What if a restaurant refuses your gift card?

First, check the terms. If it is a promotional card with a date that has passed, the restaurant may be within its rights. If you paid for it and it has an expiry date, you may have a case. Be polite, show the card and your receipt, and ask for a manager. If it cannot be resolved, contact Consumer Protection BC or the Ontario consumer services line.

What if the restaurant closes?

This is a real risk. A gift card is a prepayment, and if a business closes, you may become an unsecured creditor and lose the money. Spend cards soon after you buy them, particularly at small independent restaurants. If a restaurant is in difficulty, ask for a refund while you can, though businesses are not always obliged to give one.

What if the card is lost or stolen?

Many restaurants treat a gift card like cash. A physical card may not be replaced without proof of purchase, and some places will not replace it at all. Keep the receipt and take a photo of the card and its number. Digital cards linked to your account are usually safer.

Can you use a gift card for the tip?

This varies. Some restaurants allow you to put a tip on a card payment and use a gift card for the food. Others do not. A tip is for the staff, so if the card is full value, pay the tip with another method if you can.

Are gift cards taxed?

Buying a gift card does not normally add sales tax, since the tax is charged when the card is spent on food. You will see GST and HST or PST on the meal when you redeem it.

Should you buy a gift card for a restaurant you like?

Yes, as long as you do it with your eyes open. The best cards are for businesses that are doing well, used soon after purchase, and bought in an amount that will cover a real meal. Dinner for two is a useful amount for a present.

How do you choose a place worth a gift card?

A gift card lands best when it matches the person. Before you buy, look at what your friends have rated and saved: in the Mosey app, the Friends' picks layer on the map shows where the people you follow have eaten, and a rating by the dish tells you whether the kitchen is known for the brunch, the tasting menu or the pizza your recipient loves. Add a tag like Date Night or Group Dining to your own ratings so the next shopper can see why you chose it.

Keep a list called Gift ideas with a note on each place, and share it with the family member who always asks what to buy.

More guides to read next:

• Nanaimo, BC food guide: Nanaimo bars, the harbour and where to eat
• Canadian restaurant words explained: licensed, patio, double-double and what the menu means
• Canadian Thanksgiving in Ontario and BC: eating out, harvest menus and farm days

More in the Canadian food guides and the ranked lists of places.

When you find the right place for a gift, open the Mosey app and rate the dish that made you choose it.