Selling Gift Cards

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Question:

If I sell gift cards at my teller window and/or at a merchant’s location, am I required to get new account data such as TIN and driver’s license numbers?

Answer:

A gift card or stored value card does not fall within the definition of an "account" for CIP purposes; you are not required to obtain any specific information in connection with its sale. Nevertheless, I encourage you to limit your sales of stored value cards to established customers; i.e. customers on whom you have already verified identity and have identifying information on file. The current lack of compliance requirements relating to stored value cards doesn't suggest that they don't present risks, it only suggests that the law has not yet caught up with the technology.

First published on BankersOnline.com 10/23/06