Has anyone heard of this Win Game going on through Visa? For every application that a bankers submits they get to scratch a card for a chance to win prizes? Because there is consideration for a chance to win, this would be considered a lottery, Correct? Someone please help, my retail department says that all the banks that we are affiliated with are doing this but I don't see how we can. Thanks!

You might check Visa's official rules. There is usually an alternate method of entry so that everyone can enter which keeps it from being a lottery.

I actually did think of that... and here are the Official rules for "To Enter: The Visa "Surprise, Surprise!" Employee Game ("Game") begins 5/01/07 and ends 8/31/07, or when supply of Game cards is exhausted, whichever occurs first ("Promotion Period"). During the Promotion Period employees of Participating Institutions (as defined below) will receive one (1) Game Card from their manager when they (i) submit on behalf of a consumer a completed application for a Visa credit card, or Visa Check card, or Visa Business credit card, or Visa Business check card, or (ii) sell a Visa Buxx card, Visa Gift card, or Visa Travelmoney card, or Visa Payroll card or Visa General Purpose Reloadable card (collectively, "Eligible Cards"), or (iii)submit a referral form. For the purpose of this Game, "Participating Institutions" shall be defined as a participating financial institution, retailer, employer or other authorized seller or issuer of any or all of these Eligible Cards."

This is it as far as entering there was no clauses for entering any other way...

If these are payments to employees - it is not a lottery - it is incentive pay.

The more important questions would be: Who's responsible for the W-2 reporting on these prizes?

But the payments are based on a game of chance, with consideration (submitting of a complete app- the only way to enter), thus I believe making it a lottery. From my understanding you can not have a lottery for customers or employees. I agree the question of who is responsible for w-2 is also a concern I am having...

I would imagine that you have a lot on your plate already Shayh, why get worked up over a VISA contest conducted by VISA?

It is not open to the customers, thus not a lottery to them.

It is an incentive program to staff/affiliates. Consider: How much different is it that you may pay an employee for opening a checking account, rather than the entire staff for that account? Is it not partly chance too that that customer approached one employee over another?

Take the scratch off element out of it. You referred an app to us, here is a token of our appreciation.

There is no consideration. The employee is not submitting thier own applications, they are customer applications. This is no different that putting every employee name in a fish bowl for every new account they open and drawing a name each month and giving them cash or another prize. This sounds like purely incentive compensation.

I agree with Randy. While it sounds like a lottery, the participants, the employees, are not paying any consideration. The employees don't pay any fee to submit an app and pay no fees afterward.

Part of what I was basing my info on came from a Webinar- answer and questions for Contests, Bonuses, Sweepstakes and Lotteries put on by Andy Z. & John B. How is opening an account for a customer consideration while submitting a app wouldn't be??


Question 57. Do contests/lotteries apply to employees? For example
employee who refers/opens specific account is entered into a raffle for vacation
for 2. Do the laws apply to this type of situation?
Answer: A lottery is a lottery is a lottery. The rules do not differentiate between
employees or customers.

The reason why this "is" a problem or something for me to spend time on is because we do not allow our marketing department to run promotional "lotteries" and they heard about this promotion and questioned why this was allowed for retail and they weren't allowed to run similar promotions in marketing (most of the time for charity fundraisers-good causes)...so There is a bigger reason, we just try to keep the line clear across the board- especially since everything I had researched said that a financail institution "shall not" for customers or employees...

Where's the consideration given for entering the contest??? There has to be consideration for it to be deemed a lottery.

I am still "green" to compliance but my understanding is that consideration can be monetary or simply be requiring a specific act to enter, in this case having a completed app to sumbit. I also think what makes this different than incentive is that not everyone is getting compensated for there acts, some win 5$ gift cards, some win 10$ gift cards, others win a "chance" to win $5000 visa gift card and others get nothing...and they have all done the same "act" to enter to win. And honestly I didn't think that you could put everyone's name in a hat for opening an account (this would be consideration- with my understanding) because it needs to be open for everyone for a drawing to be able to be done at a Financial Institution... I guess I am a little confused because of what I have been researching on Bankeronline I feel varies with what everyone is telling me here now.

I agree with Randy and Andy. I must "advance money or credit to another in exchange for the possibility or expectation that one or more . . . will receive . . . more than the amounts they advanced . . ." [Refer to Section 20(c)(2) of the Federal Deposit Insurance Act.]

I recommend you research it for yourself rather than believe anyone - including me. That's one of the first rules of being a good compliance expert: don't believe me, look it up yourself.