iii. A consumer purchases a $25 gift card that allows the gift card holder to make purchases from a merchant or claim admission to the amusement park affiliated with the merchant. The Card is not eligible for the exclusion of Section 1005.20(b)(6) as it cannot be exchanged solely for entry or the Ticket itself (or for goods and services purchased as part of such admission). The Card meets the definition of a „Store Gift Card” and is therefore subject to § 1005.20, unless otherwise excluded. 3. Non-physical certificates and cards. If no physical certificate or card is issued, disclosures must be provided to the consumer prior to the purchase of the certificate or card. For example, if a gift card or card is a phone code, the required information can be provided orally prior to purchase. See also § 1005.20(c)(2). 4.
Issued primarily for personal, family or household use. Section 1005.20 applies only to cards, codes or other devices sold or issued to a consumer primarily for personal, family or household use. A card, code or other device originally acquired from a business is subject to this section if the card, code or other device is purchased for redistribution or resale to consumers primarily for personal, family or household use. In addition, the fact that a card, code or other device may be funded primarily by a business, such as: In the case of certain reward or incentive cards, the card, code or other device does not fall within the scope of § 1005.20 if the card, code or other device is given to a consumer primarily for personal purposes, family or domestic. See, however, § 1005.20(b)(3). Whether a card, code or other device is issued to a consumer primarily for personal, family or household use depends on the facts and circumstances. For example, if a program manager purchases gift cards directly from an issuing merchant and sells these cards in its retail stores, these gift cards are subject to the requirements of section 1005.20 because the gift cards are sold to consumers primarily for personal, family or household use. In contrast, a card, code or other device would generally not be issued to consumers primarily for personal, family or household purposes and would therefore not fall within the scope of section 1005.20 if the purchaser of the card, code or device is contractually prohibited from reselling or redistributing the card, the code or device to consumers primarily for personal use. Family or household purposes and appropriate policies and procedures will be maintained to prevent such sale or distribution for such purposes. However, if an entity that has acquired cards, codes or other devices for commercial purposes sells or distributes those cards, codes or other devices to consumers primarily for personal, family or household use, that entity will not comply with section 1005.20 if it has not met the substantive and disclosure requirements of the rule or unless an exclusion in section 1005.20(b) applies.
(1) Mandatory compliance date delayed. For gift cards, store gift cards or general-purpose prepaid cards created before April 1, 2010, the mandatory compliance date for the requirements of paragraphs (c)(3), (d)(2), (e)(1), (e)(3) and (f) of this Section is January 31, 2011, provided that the issuer of such certificate or card: 3. Cards, codes or other devices, which can be exchanged for specific goods or services. Certain cards, codes or other devices may be redeemed upon presentation for a specific good or service or „experience” such as a spa treatment, hotel stay or flight. In other cases, a card, code or other device may entitle the consumer to a certain percentage of the purchase of a good or service, such as a 20% discount on each purchase in a store. These cards, codes or other devices are generally not subject to the requirements of this section because they are not issued to a consumer „in a certain quantity” as required by the definitions of „gift card”, „store gift card” or „general purpose prepaid card”. However, if the card, code or other device is issued for a specific or denominated amount that can be used to purchase a specific good or service, such as: a certificate or card that can be exchanged for spa treatment up to $50, the card, code or any other device is subject to this section, unless one of the exceptions in section 1005.20(b) applies. See, for example, § 1005.20(b)(3). If the Card, Code or other device indicates a particular monetary value, such as a „$50 value”, the Card, Code or other device is subject to this Section, unless section 1005.20(b) applies. (2) Additional information. Issuers relying on the delayed effective date of section 1005.20(h)(1) must disclose through in-store signage, messages during customer service calls, websites and general advertising: iii. A card issuer promotes a reloadable card for teens and their parents who promotes the teen card for occasional expenses, textbooks and emergencies, and for parents to monitor spending.
Because the Card is marketed and may be sold to anyone in the general public, the exclusion in section 1005.20(b)(4) does not apply. See, however, § 1005.20(b)(2). 1. Application of exclusion. A card, code or other device is excluded from the definition of „gift certificate”, „gift card” or „general purpose prepaid card” if it meets one of the exclusions in section 1005.20(b). An excluded card, code or other device is generally not subject to any of the requirements of this section. See, however, section 1005.20(a)(4)(iii), which requires certain disclosures for fidelity, reward or promotional gift cards. 1. Service Fees. Subject to section 1005.20(a)(6), the Service Fee includes a recurring fee for the possession or use of a Gift Card, Gift Card or Prepaid Card for general use. Periodic fees include any fees that may be charged from time to time on a gift card, gift card or prepaid card for general use for the possession or use of the certificate or card, such as monthly maintenance fees, transaction fees, ATM fees, top-up fees, foreign currency transaction fees or residual application fees.
if the fee is waived for a certain period of time or only after a certain period. The Service Fee does not include one-time fees or fees that are unlikely to be charged more than once while the underlying funds are still valid, such as initial issuance fees, withdrawal fees, additional card fees, or lost or stolen certificate or card replacement fees.