Gift Cards and Prepaid Cards
Deborah S. Thoren-Peden
Clients rely on Pillsbury for ongoing counsel on regulatory compliance related to gift cards and other prepaid access products, including, without limitation, federal and state gift card and prepaid card laws, licensing laws, unclaimed property laws, prepaid access regulations, Bank Secrecy Act and other anti-money laundering laws, and privacy and data security laws. Pillsbury clients include banks, credit unions, and other financial institutions; restaurant, food and beverage companies; retailers and other merchants; travel, leisure and hospitality entities; online e-tailers, and virtual world based businesses.
Our compliance team focuses on anticipating compliance issues, helping to develop commercially sound programs, solving clients' compliance problems, and minimizing class action exposure and other risks. If disputes arise, our consumer class action team offers decades of experience in consumer class action litigation and dispute resolution.
Pillsbury's Gift Card and Prepaid Card Law Compliance Practice
Pillsbury's Gift Cards and Prepaid Cards team distinguishes itself by providing focused legal counsel to solve clients' comprehensive prepaid program compliance challenges.
We provide ongoing legal advice to manufacturers, merchants, retailers, online merchants, and restaurant chains regarding gift certificates, gift cards, and promotional cards. We provide compliance counseling to businesses in every stage of program development, from the front-end design of the products to accommodate various on-the-card disclosures and terms and conditions, to employee training, supply chain distribution and network contract negotiation, marketing strategies, licensing, privacy, unclaimed property obligations, and many other areas.
We counsel issuers, payment networks, program managers, distributors, and others regarding the issuance and reload of prepaid cards, including related licensing, anti-money laundering, unclaimed property, privacy and other compliance requirements. We also negotiate agreements related to card programs and facilitate their expansion into international markets.
We advise our clients regarding the issuance of prepaid payroll cards and the administration of prepaid payroll card programs, as well as compliance obligations associated with such programs. We also advise our clients regarding the issuance of government benefit cards.
Our card practice includes helping clients develop alternative payment mechanisms and networks, such as virtual currency, mobile payments, and e-wallets.
Our services include counsel on:
- Closed-loop and open-loop cards
- Loyalty, award and promotional cards
- Virtual currency
- Mobile payments
- Payroll cards
- Government benefit cards
- Vouchers and coupons (including "daily deal" programs)
- Telecom and broadband cards
- Transportation cards
- Prepaid program terms and conditions
- Online user agreements
- Prepaid and gift card policies and procedures
- Gift card disclosures
- Formation of gift card subsidiaries
- Federal and state gift card laws
- State licensing laws
- Prepaid access regulations
- Bank Secrecy Act and anti-money laundering laws
- Escheat of unclaimed property
- Privacy and data security programs and policies
- CARD Act
- Electronic funds transfers
- Consumer class action defense
- Co-branding and licensing agreements
- Fair Credit Reporting Act
- Outsourcing arrangements
- Risk management