Скачать презентацию New Rules for Gift and Prepaid Cards What Скачать презентацию New Rules for Gift and Prepaid Cards What

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New Rules for Gift and Prepaid Cards What Are The Merchant’s Next Steps? Scott New Rules for Gift and Prepaid Cards What Are The Merchant’s Next Steps? Scott D. Feinstein Associate General Counsel ABA Spring Conference April 23, 2010

First Step – Take An Inventory of Card Use • Take an inventory of First Step – Take An Inventory of Card Use • Take an inventory of how gift cards are used in the company today, which is most likely a mix of gift card, reward card, marketing promotions etc as they all have different rules • Ask questions about fees, or if the actual issuer charges fees and determine if the fee is really necessary • Ask questions about expiration dates, and whether the underlying funds expire after the card expiration or on that date • Work with your business to replace card stock as required to comply with the new rules • Develop guidelines for business use of each kind of card (gift, reward/promotion, prepaid). 2

Next – How is the Card Marketed? • Gift Card Malls – don’t mix Next – How is the Card Marketed? • Gift Card Malls – don’t mix the types of cards on display. Have policies and procedures to prevent inadvertent error from converting your cards. • Purpose of the Card – is it a gift or a bank substitute? • Review all advertising – prevent the marketing message from changing the type of card issued • B 2 B and wholesale – not just good enough to know that you sell the cards to another business. • Employee incentive or rewards cards 3

Don’t Panic and Try To Always Meet the Exceptions • For Reward/Promotional cards, if Don’t Panic and Try To Always Meet the Exceptions • For Reward/Promotional cards, if there are no fees, and the underlying value expires when the card does, generally just prominent disclosure of the value expiration date (which is usually the card expiration date) and any restrictions on use are sufficient (making sure you use card stock that clearly states on it that it is for reward/promotional purposes). • Paper Certificates – if properly issued as a paper certificate, can keep the bar code at the POS to use for customers who lose their certificate and it’s still a paper certificate. 4

Reward/Promotional Card Requirements • For cards, codes or other devices provided to a consumer Reward/Promotional Card Requirements • For cards, codes or other devices provided to a consumer in connection with a loyalty, award or promotional program, you must disclose: • A statement that the card, code or other device is issued for loyalty, award or promotional purposes, which must be on the front of the card, code or other device; • The expiration date for the underlying funds which must be on the front of the card, code or other device; • The amount of any fees that may be imposed and conditions under which they may be imposed which must be included with the card, code or device; and • A toll-free number and if one is maintained, a web site, that a consumer may use to obtain fee information which must be included on the card, code or other device (this disclosure not needed if there are no fees). 5

Exceptions (cont’d) • The terms “gift certificate”, “store gift card” and “general-use prepaid card” Exceptions (cont’d) • The terms “gift certificate”, “store gift card” and “general-use prepaid card” do not include any card, code or other device that is: • Usable solely for telephone services; • Reloadable and not marketed or labeled as a gift card or gift certificate (including temporary non-reloadable cards issued solely in connection with a reloadable card or other device • A loyalty, award or promotional gift card (but disclosures still apply to those); • Not marketed to the general public • Issued in paper form only with no electronic promise • Redeemable solely for admission to events or venues at a particular location or group of affiliated locations, or to obtain services along with such events in and around the geographic proximity to the event. 6

Preemption of State Gift Certificate Laws • Only those state gift certificate/gift card laws Preemption of State Gift Certificate Laws • Only those state gift certificate/gift card laws inconsistent with the purposes of these rules will be preempted • If the state law provides greater protections for the consumer, the state law will not be preempted • 25 States do not allow expiration dates on cards where the customer provides consideration; 5 states don’t allow expiration on cards even when the customer provides no consideration • The Federal Reserve Board will decide when asked if any particular state law restriction is preempted using the standards above. 7