In what it called a "small" deal worth about $300 million, American Express has announced plans to buy Revolution Money, the card-based alternative payments platform launched in 2007 by a goup that included former AOL Chief Executive Steve Case.

American Express CEO Ken Chennault said his company believes Revolution Money "has big potential," and indicated that Amex plans to take the low-cost payments platform global. The immediate effect will be to give American Express a foothold in the alternative payments arena and the technology supporting it.

The deal also -- at least potentially -- gives Amex closer business ties to several financial institutions with substantial issuing and aquiring operations. Citigroup and Fifth-Third Bank, for example, both issue Revolution Money cards and Fifth Third also includes Revolution card acceptaance in its merchant acquiring operations

The Federal Reserve Board on Monday announced proposed rules that would restrict the fees and expiration dates that may apply to gift cards. The rules would protect consumers from certain unexpected costs and would require that gift card terms and conditions be clearly stated

The proposed rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1) there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the fees. Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded

The Board's proposed rules generally cover retail gift cards, which can be used to buy goods or services at a single merchant or affiliated group of merchants, and network-branded gift cards, which are redeemable at any merchant that accepts the card brand

The proposed rules are issued under Regulation E (Electronic Fund Transfers) to implement the gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009

The Board's notice is attached. Comments on the proposal must be submitted within 30 days after publication in the Federal Register, which is expected shortly.

Highlights of the rules proposal.

Retail sales in October rose more than analysts expected, the government reported November 16.

The Commerce Department said total retail sales jumped 1.4% last month, compared with September's revised decline of 2.3%. Economists surveyed by Briefing.com had anticipated that October sales would grow 0.9%.

With the start of the holiday shopping season fewer than two weeks away, the Nove. 16 report shed little light on whatretails sales willl look like. Sales excluding autos and auto parts edged up only 0.2%. That's slightly worse than the 0.4% increase predicted by economists, but better than revised September numbers..

Consumer spending accounts for two-thirds of U.S. economic activity, and data are closely watched to determine whether a recovery is underway. With unemployment at a 26-year high of 10.2%, however, consumers remain cash-strapped, driving down4th-quarter sales predictions.