Gift Card Regulations

[Ben_EverythingLiquid]

Hi Guys,

I am after some advice, hoping someone could help

I would like to introduce a gift card service for our product range.

I am trying to find out the legalities of offering this service, I have come across 'the electronic money act 2011" but trying to get the nuts and bolts off what feels like a million page document is frustrating.

Basically I am after a few bullet points on the process I need to take to make sure what I will be doing is legal, and compliant to what is required.

Any help would be greatly appreciated.

Many Thanks,
Ben

 

[tan_lan]

The Regulations do not cover “closed loop” schemes. This is where the balance can only be expended with the issuer itself, for example, a balance with an online wine retailer or a gift card for a music store and would also exclude, for example, your top-up card for the office canteen. In respect of “controlled loop” schemes – in that the balance on that card or account can only be expended at certain retailers as specified by the card issuer or the account bank, such as, gift cards for a franchise of coffee shops – would probably not be covered by the Regulations as long as the retailers where that balance could be expended were made very clear and the ability to spend outside that “controlled loop” was disabled.

 

[Ben_EverythingLiquid]

Thank you for giving your time to reply.

Reading this seems like we are definately closed loop and able to proceed, however for official clarification I have asked the UGVCA for an official response.

Regards,
Ben

 

[tan_lan]

I think that gift vouchers are really just credit notes and so little regs apply.

Not that I think thats good, many people have been ripped off by gift cards when the issues goes bust.

 

[Twinkle Toes]

We used to offer gift cards, they would be purchased for X amount and the recipient could spend the balance a little at a time. Each spend and the new balance were simply updated on the card, by hand, by a member of staff, and the details of the card, and it's balance, updated on our computer system (each card had a unique number). The card was designed like a greetings card.

Hope that makes sense, as the reason for the detail is that it wasn't strictly electronic so may not apply. But we phoned trading standards to make sure we were able to do this, and as far they were concerned there were no issues at all, as effectively we were issuing a credit note.

If that applies to swiped "credit" type cards I don't know.

Just my tuppence worth that may or may not be of use!