The U.S.Court of Appeals for the First Circuit has upheld the authority of national banks and federal savings associations to use non-bank third parties to market stored value gift cards issued by the institutions without regard to state laws.

According to court documents, federal banking regulators “are entitled to regulate the terms and conditions of gift cards sold by national banks and national thrifts” and that such regulations preempt New Hampshire laws relating to expiration dates and administration fees. The case is a clear victory for those who support pre-emption of state laws governing gift cards and the payments industry broadly. Click Here to view the entire text of the court’s decision.