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Debit Cards, Gift Cards and Stored Value

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At the intersection of  prepaid financial services, stored value and technology  stands a network of federal, state and global regulations.  Let The CommLaw Group guide you through the maze of complex legal obligations and achieve safe haven from both governmental scrutiny and compliance with contractual duty    

The debit card, gift card and stored value industry has experienced tremendous growth in the last few years, in part because of the recent economic crisis. A growing segment of the population is turning to prepaid cards as an alternative to traditional bank accounts. In addition, more stores are resorting to promotional gift card offerings to attract business. However, with this growth comes increased state and federal regulatory scrutiny. Not only must providers contend with increased oversight with regard to consumer protection issues, they also face a renewed focus on banking regulations and anti-money laundering measures. Further, the current economic crisis has caused many states to struggle to fill dwindling coffers through creative means.

Authorities are increasingly targeting stored value vendors through the expansion and enforcement of state unclaimed property and escheat laws and the enlargement of traditional concepts of nexus for sales and income tax purposes.

In addition to The CommLaw Group’s regulatory and compliance services, through cross-pollination with our firm’s other practice groups, we offer clients valuable assistance in many facets of business development including interactions with consumers, distributors, and vendors.

Resource Material

Navigating Through Prepaid Regulation & Legislation: Payments Regulations

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