Gift Card Issuer Overview and Best Practices

Gift card issuers play a crucial role in the gift card industry, and understanding their operations is essential for consumers and businesses alike.

Some of the most prominent gift card issuers include major retailers like Amazon, Target, and Walmart, as well as financial institutions like American Express and Visa.

A key aspect of gift card issuers is their responsibility to ensure that cards are not sold or used for illicit activities, such as money laundering or terrorist financing.

Gift card issuers must also comply with regulations regarding card expiration dates, fees, and disclosure requirements.

Gift card issuers are responsible for creating and distributing gift cards to consumers. They often partner with retailers to offer their cards as a payment option.

The largest gift card issuers in the US are major banks and financial institutions, such as American Express and Visa. Some issuers also offer their own proprietary cards, like the Amazon Gift Card.

In addition to banks and financial institutions, some companies specialize in gift card issuance and management, providing services to retailers and other businesses.

Retail gift cards show you put thought into the type of gift the recipient would like, for example, a restaurant gift card for a foodie.

Retail gift cards can only be used at a particular business, so consider the financial health of the business, as it could go bankrupt and the card become worthless.

You should also think about how convenient it will be for the recipient to use it, especially if they're not accustomed to shopping online or have trouble visiting the brick-and-mortar store that issued the card.

A network-branded bank gift card, on the other hand, can be used at any business that accepts the card's type, such as American Express, Discover, Mastercard, or Visa.

These cards can also be used at certain ATMs to get the card balance in cash, which can be a convenient feature for the recipient.

If you have a dispute with a retailer about a purchase made with your gift card, you should try to resolve it directly with the retailer.

You can't rely on the gift card issuer to intervene or provide protection, as stated in the terms and conditions. The Consumer Protection Act 1974 doesn't apply to gift card purchases.

Once you've used your gift card to make a purchase, the issuer can't stop the transaction. This means you're left to deal with the retailer directly to resolve any issues.

Your gift card isn't a credit or debit card, and it doesn't offer the same level of protection as these types of cards.

Using AllGo Master is a straightforward process. You can find detailed instructions on how to use your AllGo Mastercard Gift Card on the Website.

The value of your transactions will be deducted from the balance on your Card as soon as they are made. This includes any applicable fees.

The AllGo Mastercard Gift Card belongs to the issuer, and they will deduct the fees as soon as they become payable by you.

Fees are a crucial aspect of gift card issuers, and it's essential to understand the rules surrounding them. A dormancy fee can be imposed on a gift card if there has been no activity within the one-year period prior to imposing the fee.

To meet the requirements, the issuer must disclose the dormancy fee clearly and conspicuously on the card or certificate before purchase. This disclosure must also be provided prior to purchase. The issuer can only impose one dormancy fee per calendar month.

If a dormancy fee is imposed on January 15 of year two, another dormancy fee cannot be imposed until February 1 of year two, as long as there has been no activity on the card since the previous fee was imposed. However, if the consumer uses the card to make a purchase on January 31 of year two, another dormancy fee cannot be imposed until January 31 of year three.

The issuer cannot accumulate fees for previous periods into a single fee that would circumvent the restriction on charging more than one fee per month. For example, if a consumer purchases and activates a store gift card on January 1 but never uses the card, a monthly maintenance fee of $2.00 a month cannot be accumulated such that a fee of $24 is imposed on January 1 the following year.

Some gift card issuers may charge additional fees, such as initial issuance and cash-out fees. These fees must be disclosed, including the type of fee, the amount of the fee (or an explanation of how the fee will be determined), and the conditions under which the fee may be imposed. The issuer must provide this information prior to purchase.

Here are some examples of fees that may be charged by a gift card issuer:

You can contact the AllGo Mastercard Gift Card issuer through their website's "Contact Us" facility, which will deal with your enquiry promptly.

They also have a customer service telephone line that you can call at +353 1 563 4444, or if your card has been lost or stolen, on +353 1 513 3656. Calls are charged at your local call rate.

If you're under 16, don't forget to get consent from your parent or guardian for non-essential cookies.

Your privacy is important to the issuer, and you can adjust your cookie settings at any time by clicking on the settings button below.

Treating your gift card like cash is essential for security. If your AllGo Mastercard Gift Card is lost or stolen, you may lose some or all of the funds on your Card, just like if you lost cash.

You must keep your Card safe by signing the back of the card immediately upon receipt, taking all reasonable care and precaution in its custody, and never giving your Card number or any other Card information to anyone unless you know who they are and why they need it.

Regularly checking the balance on your Card is also a good idea. You can do this online at the Website, and you'll receive your Card balance and a statement of recent transactions.

Here's a quick rundown of what to expect from your transaction statements:

Fraud is a serious concern when it comes to gift cards, and it's essential to be aware of the risks. Issuers have the right to close your account and request alternative payment methods if they suspect your card has been obtained fraudulently.

To minimize the risk of fraud, it's best to purchase gift cards directly from authorized retailers or the issuer's website. Buying discounted cards from third-party resellers, such as those on Craigslist or eBay, is not recommended as they may be purchased with stolen credit cards and can be closed at any time.

If you're unsure about the legitimacy of a card, you can email [email protected] for more information. This can help you avoid potential issues down the line.

Your issuer may also query your card usage for fraud prevention reasons, which can result in blocked transactions. To resolve this, you can contact their customer support team to request that your card be reinstated.

In some cases, your issuer may ask you to stop using your card and return it to them or destroy it. This may happen if they're concerned about the security of your account or suspect unauthorized or fraudulent activity.

If your issuer refuses to pay a transaction, it's usually due to one of the following reasons: security concerns, insufficient funds, outstanding shortfalls, or suspected fraudulent activity. You can contact them to correct any information that may have caused the issue.

Here are some reasons why your issuer may refuse to pay a transaction:

Treat your AllGo Mastercard Gift Card like cash, as you may lose some or all of the funds if it's lost, stolen, or your card details are compromised.

You should sign the back of the card immediately upon receipt and take all reasonable care to keep it safe.

Never give your card number or other card information to anyone unless you know who they are and why they need it.

Protect your card from scratches and exposure to magnets, which can damage it and render it unreadable.

Regularly check your card balance online to stay on top of your spending and avoid any potential issues.

Here's a summary of the steps to keep your AllGo Mastercard Gift Card secure:

Your gift card funds are protected in the unlikely event of the issuer becoming insolvent. The funds are deposited in a separate bank account, which is segregated from the assets of EML Money DAC and AllGo Global Rewards Limited.

This means that if EML or AllGo were to go out of business, your funds would be safe and available for return to you. The Irish Deposit Guarantee Scheme does not cover claims related to the issuing of electronic money.

Gift card regulations can be complex, but understanding them is essential for issuers and consumers alike. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) created new consumer protections for gift certificates, store gift cards, and general-use prepaid cards.

In the United States, the Federal Reserve Board (Board) published a final rule amending Regulation E to implement the Credit CARD Act's requirements. This rule affects gift certificates, store gift cards, and general-use prepaid cards sold or issued primarily for personal, family, or household use.

The final rule applies to various types of cards, including those with chip or other embedded mechanisms, mobile phones, and stickers containing contactless chips. However, cards for telephone services are excluded, unless redeemed for prepaid Internet access and similar technology services.

To comply with regulations, gift card issuers must clearly and conspicuously disclose dormancy, inactivity, or service fees on the certificate or card before purchase. These fees can only be imposed under specific conditions: there must be no activity on the card for one year, only one fee can be assessed per calendar month, and the fee must be disclosed before purchase.

Here are the conditions for imposing dormancy, inactivity, or service fees on gift cards:

To illustrate this, consider the following example: If a consumer purchases a gift card on January 15 and there is no activity on the card since its purchase, a dormancy fee can be imposed on January 15 of the following year. However, if a fee was imposed on January 15, another fee cannot be imposed until February 1 of the same year, as February is a new calendar month.

To use your gift card, follow the instructions on the issuer's website. You'll need to deduct the value of your transactions from the balance on your card as soon as they're made.

The issuer will also deduct any applicable fees as soon as they become payable by you. This is outlined in the fees section of the website.

Your gift card belongs to the issuer, so be sure to use it responsibly and follow their guidelines for usage.

Expiration dates can be a real headache when it comes to gift cards. Most gift cards display an expiration date, but this doesn't necessarily mean they will expire. In fact, under federal law, a gift card must remain valid for five years after the date it was activated.

This means that even if the expiration date on your card is within the first five years, the card should still be usable as long as there are unused funds on it. However, if the card does expire, you may be able to have it replaced without a fee.

Some states take it a step further and don't permit gift cards to expire at all. If you live in one of these states, be sure to check with your state's consumer protection office for more information.

If you're trying to redeem the funds on your gift card, be aware that you may be subject to a redemption fee. But don't worry, you can still redeem the funds if you request it within six years of the card's termination or expiry.

A dormancy fee can be imposed on a gift card if there's been no activity within a year, but only if the issuer clearly discloses this on the card and provides it before purchase.

You can't impose more than one fee per month, and a dormancy fee can't be accumulated with other fees to circumvent this rule. This means if a fee is imposed on January 1, another fee can't be imposed until the next calendar month.

If a fee is imposed on January 1, a balance inquiry fee can't be imposed in the same month.

Here's an example of what this looks like in practice:

Here's a list of the conditions that must be met for a dormancy fee to be imposed:

You can load your AllGo Mastercard Gift Card with up to €2,500, but be aware that the issuer might refuse a particular transaction.

Loading your card requires completing the security check requirements, and once cleared, your funds will be available for use without delay.

The e-money associated with your card is issued by EML Money DAC, a company authorized by the Central Bank of Ireland under the Electronic Money Regulations 2011.

Your AllGo Mastercard Gift Card is not transferable to anyone else, it's the property of AllGo.

Gift cards can be customized with a company's logo, making them a unique and thoughtful gift for employees or customers. Some gift card issuers offer a range of design options to choose from.

Gift cards can be loaded with a specific amount, allowing the recipient to choose their own gift within that budget. This feature is particularly useful for companies that want to offer a gift card as a reward or incentive.

Gift cards can be used to purchase products or services online, making them a convenient option for recipients who prefer to shop from home.

Reloadable cards that aren't marketed or labeled as gift cards or gift certificates are a thing, and they're actually quite useful.

These cards are called "reloadable" because you can add funds to them, but they're not marketed as gift cards or certificates, which is important for compliance purposes. The terms and conditions of the prepaid card determine this, not the issuer's technical ability to add value.

Multiple parties can be involved in a card program, like a retailer marketing the product and not the card issuer. This can make it tricky for the issuer to verify how the cards are displayed at each retail outlet.

The final rule provides that the exclusion applies as long as the card or certificate isn't marketed or labeled as a gift card or certificate, and the issuer maintains policies and procedures reasonably designed to avoid such marketing.

Reasonable policies and procedures might include contractual terms and conditions that prohibit marketing the general-purpose reloadable cards as gift cards or certificates, and controls to regularly monitor or verify that cards aren't being marketed as such.

For example, an issuer or program manager might set up a single multi-sided display at the retailer with gift cards segregated from excluded cards, and signs of equal prominence clearly differentiating between gift cards and other prepaid cards. This would be a reasonable way to avoid marketing the general-purpose reloadable cards as gift cards or certificates.

Loyalty and Promotional gift cards are a bit different from the others. They're usually funded by the entity sponsoring the card program, not by the consumer.

To qualify for the exclusion, the card must meet three requirements. It must be issued on a prepaid basis primarily for personal, family, or household purposes to a consumer in connection with a loyalty, award, or promotional program.

The card must be redeemable at one or more merchants for goods or services, or it can be used at an automated teller machine. This is a pretty broad range of options.

Loyalty, award, or promotional gift cards are not subject to the Credit CARD Act's substantive restrictions on fees and expiration dates. This means they can have expiration dates and fees, but they're not bound by the same rules as other gift cards.

The front of the card must disclose the expiration date and state that it is issued for loyalty, award, or promotional purposes. Printing "Reward" or "Promotional" on the front of the card satisfies this requirement.

Issuers must also disclose a toll-free number anywhere on the card and (if applicable) a website address that a consumer can use to obtain fee information. This is to help consumers navigate any fees associated with the card.

Any fees and the conditions under which they may be imposed must be disclosed on or with the card, code, or device. This is just a matter of transparency, so consumers know what they're getting into.

Some gift card issuers, like American Express, offer reloadable gift cards that can be refilled online or by phone.

Amex gift cards can be used anywhere American Express is accepted, both online and offline.

American Express gift cards are available for purchase at various retailers, including Costco, Walmart, and Target.

Gift cards are not considered marketed to the general public if they're obtained through specific channels or subsets of consumers. For instance, a card containing insurance proceeds provided by an insurance company to a customer to settle a claim is not marketed to the general public.

A card containing store credit provided by a retailer to a customer following a merchandise return is also not marketed to the general public, as long as the card states it's issued for store credit. This is a common practice in the retail industry.

In some cases, a merchant selling gift cards at a discount to a business that may give them to employees or consumers as incentives or rewards is not considered marketing to the general public, as long as the card can also be purchased through retail channels. This highlights the importance of having multiple sales channels.

A bank marketing gift cards only to its customers is not considered marketing to the general public, as long as a member of the general public can become one of the bank's customers. This shows that even exclusive marketing efforts can still be open to the general public.

A card issuer advertising a reloadable card to teenagers and their parents is not considered marketing to the general public, as long as the card is marketed and sold to any member of the general public. This is a key distinction to make when it comes to gift card marketing.

The AllGo Mastercard Gift Card is issued by EML Money DAC, a company based in Ireland. EML Money DAC is authorised by the Central Bank of Ireland under the Electronic Money Regulations 2011.

Your AllGo Mastercard Gift Card is not transferrable to anyone else, it's property of AllGo.