7-11 charged me tax on a vanilla mastercard?!?!?

[chengbin]

I bought a $25 vanilla mastercard at 7-11, and they charged me tax for it!! I thought you can't charge tax on a gift card? I saw there is a $4 activation fee, so my $30 spent only gives me $20. Can I return this card?

[SoroSuub1]

Is it tax on the $4?

[chengbin]

Is it tax on the $4?

No. It was $25 + tax.

Wait. Is the activation fee paid upfront or when you first use the card, and they deduct it from your $25 amount?

[bargainista!]

the activiation fee is paid when you buy the card. That way if you give someone a $25 card as a gift they will actually have $25 to spend.

[dwalker19]

They can't charge you tax when you buy it, *maybe* on the activation fee. But not on the $25. You are only charged tax when you use the card to purchase stuff.

[x95zsk]

damn...that's a lot of money for activation on a $25 card!!!

[Blvck_Scvle]

Great thread. Read your receipt next time.

[pompoco]

Did you pay $29.20? or $29.46?

$25 -VMC
$ 4 - Activation 5% GST= $.20 HST=$.46
----
$29.00 Subtotal

If you paid $30.40 you would have paid GST on the Subtotal amount which is unlawful.

[SoroSuub1]

Did you pay $29.20? or $29.46?

$25 -VMC
$ 4 - Activation 5% GST= $.20 HST=$.46
----
$29.00 Subtotal

If you paid $30.40 you would have paid GST on the Subtotal amount which is unlawful.

That's what I intended to ask. But was too lazy to break it down. xD

[akuma2]

They charge you the activation fee upfront when you purchase the card. I think the charge is $4.95. They also charge you a maintenance fee of like $2.50 per month after the 7th months you have the card until there is no balance. Also can't reload these cards.

If this is for yourself, the best thing to do is get yourself a secured Visa or Mastercard. At least it will help you build your credit over time.

[chengbin]

Did you pay $29.20? or $29.46?

$25 -VMC
$ 4 - Activation 5% GST= $.20 HST=$.46
----
$29.00 Subtotal

If you paid $30.40 you would have paid GST on the Subtotal amount which is unlawful.

I paid $29.46

That makes sense.

But 7-11 never gave me a receipt.

[Ojam]

and they say kids are the future....

[Toukolou]

But 7-11 never gave me a receipt.

Try asking for one next time.

[Akitakara]

and they say kids are the future....

Who ever said that the future was bright?