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| Iowa May Ban Gift Card Fees |
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An
Iowa Senate proposal would ban some widespread practices involving slosed loop prepaid cards, banning expiration dates and fees on unused balances, among other things. The measure was recommended Wednesday by the Senate
Commerce Committee in a 9-3 vote. Opponents of the bill say it clashes with current law and creates an unfair burden for businesses but the measure has widespread consumer support. It includes an exception for gift cards that are given away as charitable prizes or as part of a promotion. Those cards would still be allowed to have expiration dates or other conditions that would reduce the face value. One of the more complicated parts of the measure is how it works with current law. Right now, if a gift card is purchased in Iowa and not redeemed for three years, businesses are required to declare the cash value as unclaimed property and transfer it to the Iowa Treasurer’s Office. The cards add up to about $500,000 per year. Opponents of the bill say retailers would be in a bind if a customer tries to redeem a gift card after three years. Supporters say this is unlikely to happen very often, but if it does, retailers would be able to get the money back from the Treasurer’s Office. If the bill becomes law, Iowa would join more than 30 states that either ban expiration dates or say a certain amount of time must pass before expiration. |
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Strategic Leadership &
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2009 ETA Annual Las Vegas, NV |
| 2009 Annual Meeting |
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 2008 Annual Meeting Exhibitor Information is Here! If you're planning to join the leading companies in the payments business in the ETA Annual Meeting exhibiton hall next April, now is the time to reserve your space and make your plans. Everything you need is here . |
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