Canadian Tire Money Information
Canadian Tire money (CTM) is a loyalty program by Canadian Tire. It consists of coupons, issued by the company, which resemble real currency (although the coupons are considerably smaller than Bank of Canada notes), and can be used as scrip in Canadian Tire stores, but is not considered a private currency. The notes are printed on paper similar to real Canadian currency, and were jointly produced by two of the country’s long established security printers, British American Banknote Company (BABN) and Canadian Bank Note Company (CBN).[1] Some privately owned businesses (in Canada) accept CTM as payment (see history below), since the owners of many such businesses shop at Canadian Tire.
Contents |
History and dynamics
CTM was introduced in 1958, and was inspired by Muriel Billes, the wife of Canadian Tire's co-founder and first president, A.J. Billes, as a response to the promotional giveaways that many gas companies offered at the time. It was only available at Canadian Tire gas bars, but was so successful that in 1961 it was extended to the retail stores as well, and has become the most successful loyalty program in Canadian retail history.[1] The print on the 'notes' officially refers to them as cash bonus coupons.
Canadian Tire "Money" is given out for purchases paid for by cash or debit, based on the pre-tax total, excluding labour and shop supplies costs. The coupon rate earned was initially 5% of the eligible purchase price, but was subsequently lowered to 3%, then 1.4%, and now is 0.4%. Customers can use Canadian Tire Money to buy anything in the store. (Older CTM coupons state that they are redeemable at Canadian Tire stores and gas stations; however, CTM coupons produced during at least the last 15 years lack this wording and are therefore redeemable in the stores only.)
The "Money" can also be used to cover the sales tax on the purchases, since it is accepted as cash after the taxes are calculated. Also, even if a purchase was made entirely in CTM, it is also considered as a cash purchase and more CTM will be calculated and paid out.
In Ontario the Retail Sales Tax law and Bulletins stated that the "coupon must be reimbursed by the franchisee". By submitting them to other merchants, the merchants were in essence breaking Ontario law when they failed to include the discount in the value of the goods being calculated for being taxed. Some merchants were accepting CTM as a discount, but then were not calculating and remitting the sales taxes, as required by law, and then were getting fined for the practice. Until present, this has been an ongoing issue.
For this reason, among others, another loyalty programme provided in the 1960s, S&H Green Stamps, was terminated within the province.
Denominations
In 1958, five different denominations (composed of 5-cents, 10-cents, 25-cents, 50-cents, and $1) were issued. The revision of 1962 included the introduction of four lower values (1 to 4 cents), and 12 higher denominations, including 35 and 60 cents. A sequence of six denominations was introduced in 1985 including the 3-cents, 5-cents, 10-cents, 25-cents, 40-cents, 50-cents, and $1. A $2 note was added in 1989, and the 3 cents was dropped in 1991.[2]
CTM coupons are currently produced in 5-cent, 10-cent, 25-cent, 50-cent, one-dollar, and two-dollar denominations. In addition, Canadian Tire Money can be earned electronically on Canadian Tire credit cards and the Canadian Tire Options MasterCard. The latter can be used wherever MasterCard is accepted and earns Canadian Tire Money no matter where it is used to make a purchase, anywhere in the world. CTM is treated as real currency by the franchise and cannot be directly exchanged for real Canadian currency for customers. If an item bought with Canadian Tire Money is returned the customer receives either Canadian Tire Money back or is given the amount on a gift card. If an item is bought with cash or card and is returned for a refund the customer receives the refund less the value of the CTM issued on the item unless the CTM is also returned.
On December 2, 2009, Canadian Tire had handed out the first Canadian Tire coin. The coin being part of an advertised deal. If you were to spend 40 dollars you could receive this coin. They had another similar deal in 2010 (coinciding with the 2010 Olympic Winter Games) with a three coin winter collection. You can use these coins the same way as CTM.
Facts and Figures
| Lists of miscellaneous information should be avoided. Please relocate any relevant information into appropriate sections or articles. (January 2011) |
- CTM is accepted at face value by the occasional private merchant in Canada. For instance, the "Leonardo's Lounge" coffee shop, run by the student engineering society at Carleton University, Ottawa, Ontario, accepts CTM as payment.[3]
- In late 2004 in Moncton, New Brunswick, several customers at a Canadian Imperial Bank of Commerce ATM were dispensed a total of 11 bills of Canadian Tire money instead of real bills. They were compensated by the bank.[4]
- Contrary to popular belief in the United States and other countries outside Canada, the man on the "money" is not Canada's first Prime Minister Sir John A. Macdonald; he is actually a fictional creation named Sandy McTire.[1]
- Canadian Tire money is the main topic of the song "La Chute du huard" (Loonie's fall) by Quebec singer Mononc' Serge, the lyrics claiming it is more stable and a better investment than the Canadian dollar.
- Culturally, Canadian Tire money is sometimes referenced by comedians: perhaps as a national version of "Monopoly money", perhaps invoking a pejorative comparison of the value of Canadian dollars against U.S. dollars, or perhaps as a misunderstood exotic element of Canadian society (cf. Ron James' comedic reference to the person depicted on the bill as "our king"). In the 2009 Trailer Park Boys movie, "Countdown to Liquor Day" Jim Lahey offers Julian $700 in Canadian Tire money for his trailer.
- Canadian Tire money used to be a form of payment allowed for use by sellers on the Canadian version of the online auction site eBay
- In the mid 1990s, a man in Germany was caught with up to $11,000,000 in counterfeit Canadian Tire money. It was recovered before he left for Canada to redeem it. An Armenian man from the country of Georgia also had similar ideas about counterfeit scrip, and was caught with over 45 million in counterfeit coupons.[5]
- Canadian Tire's return policy states that customers must return the issued CTM along with returned product. If not, the store will deduct the amount off the return.[6]
See also
References
- ^ a b c "Canadian Tire Scrip", Numismatist Magazine, Harold Don Allen, p.64, Volume 119, Number 12, December 2006
- ^ "Canadian Tire Scrip", Numismatist Magazine, Harold Don Allen, p.65, Volume 119, Number 12, December 2006
- ^ Carleton University (2007). "Carleton Student Engineering Society: Leonardo's Lounge". http://cses.carleton.ca/services/leos/. Retrieved 2010-04-09.
- ^ "ATM gives customers Canadian Tire money". CBC News. 2004-12-02. http://www.cbc.ca/canada/story/2004/12/01/CanadianTire-ATM.041201.html. Retrieved 2007-06-14.
- ^ Shannon Montgomery (2006-12-21). "Liquor store rakes in Canadian Tire Money". http://www.lilith-ezine.com/articles/canada/2006/Canadian-Tire-Money.html. Retrieved 2007-06-14.
- ^ CBC Marketplace Funny Money?
External links
- Canadian Tire 'Money' - Select 1958 expand dash symbol — History, on the Canadian Tire website.
- Canadian Tire Currency — Canadian Tire Currency Picture Catalogue Index, 1958–2003 Issues
- Ontario Retail Sales Tax Guide 511
- The official website of the Canadian Tire Coupon Collectors Club
- Alberta liquor store accepts Canadian Tire money
- A website offering to exchange Canadian Tire money for cash
- Canadian Tire money rates explained
|
|||||||||||
|
||||||||||||||||||||||||||
Categories: Dollar | Canadian culture | Canadian Tire | Customer loyalty programs | Exonumia | Community currencies of Canada
|