Retailers may come under federal regulation according to new government rule
Gift cards are a lucrative way for businesses to accommodate the needs of their consumers while boosting revenue. Now, however, retailers will need to ensure their store operations are equipped to handle the payment option as they will be subject to federal regulations.
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) announced this week that any retailers who sell gift cards and other products known as "pre-paid access products" will be required to follow anti-money laundering regulations.
Gift cards that are valued at or below $2,000 will be exempt from pre-paid access regulations, though. The full set of rules can be found on the agency's website, covering items such as cards used internationally or refilled remotely.
"The rule addresses regulatory gaps that have resulted from the proliferation of prepaid access innovations over the last 12 years and their increasing use as an accepted payment method," said FinCEN director James H. Freis, Jr.
Fortunately, retailers can find help navigating the new rules as well as protecting their customers' private financial information through the use of retail point of sale software.
