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Gift Cards (CRS Report for Congress)

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Release Date Oct. 5, 2007
Report Number RS22431
Report Type Report
Authors Pauline Smale, Government and Finance Division
Source Agency Congressional Research Service
Summary:

Terms and conditions (including fees, lost or stolen card policies, and expirationdates) for individual card products vary. Gift card programs have different features andapplications. In addition, the varying capabilities of merchants' data processing systemscan affect card usage. This can be confusing to both recipients and givers. Federalregulators have responded to concerns. Advisories were issued providing consumerswith information and tips on gift cards. In addition, regulatory guidance articulatespractices to be followed by financial institutions that establish and administer gift cardprograms. Some states have consumer protection laws that cover gift cards. Consumeradvocates have urged Congress to create a set of national disclosure standards for giftcards and to curb or prohibit fees.
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