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#517287 - 03/20/06 03:57 PM Visa Gift Cards
Kevin Hoffman Offline
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Joined: Mar 2006
Posts: 1
I work in the auditing department for a privately owned bank and I am performing a compliance audit of our advertising department. Our bank sells Visa Gift Cards and I was wondering would this fall under Regulation E?

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#517288 - 03/20/06 05:56 PM Re: Visa Gift Cards
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Not yet. Currently, the only stored-value cards brought under Regulation E's aegis are payroll card accounts.
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#517289 - 05/22/06 06:50 PM Re: Visa Gift Cards
tjbanker Offline
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Joined: Jun 2002
Posts: 310
We are currently exploring the option of offering nonreloadable gift cards through our correspondent bank. We would be aware of any BSA issues and since Reg E doesn't play a role am I missing any other compliance issues? The funds for the card purchases are taken from our account directly. Thanks for any help.

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#517290 - 05/30/06 06:59 AM Re: Visa Gift Cards
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
I don't think you're missing much. You can also check out the recent FDIC consumer news publication. It had a section on debit cards, and these types as well. They can be recommended to customers traveling, as an example, who then don't risk taking their account debit card and risking all they have (or transferring the risk to you). Think of them as a quasi travelers check in some instances.
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#517291 - 06/19/06 01:22 PM Re: Visa Gift Cards
SkyDiver Offline
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SkyDiver
Joined: Jul 2002
Posts: 274
Northeast
Would a privacy notice have to be given to the purchaser of the Visa gift card? I am struggling with this and would appreciate opinions.

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#517292 - 06/20/06 12:15 PM Re: Visa Gift Cards
SkyDiver Offline
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SkyDiver
Joined: Jul 2002
Posts: 274
Northeast
Bump. A Visa gift card is not considered an account. And, at the time of purchase, the ultimate user is not known. I lean toward "no privacy notice is required". Any opinions on this would be helpful.

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#517293 - 06/20/06 09:24 PM Re: Visa Gift Cards
Gotwood Offline
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Joined: May 2001
Posts: 715
I agree, no privacy notice is required.

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