A. Purpose: The fraudulent procurement of third-party gift cards at retail establishments in the City has become a widespread problem. These incidents affect numerous victims and require considerable law enforcement resources to investigate. By adopting these provisions, the City Council desires to protect the health, safety, and welfare of all persons living in the City, visiting the City, and operating businesses within the City by deterring the fraudulent procurement of third-party gift cards at retail establishments and conserving the limited amount of time, energy, and resources available to local law enforcement agencies when investigating said behavior.
B. Definitions: The following words, terms, and phrases when used in this Chapter shall have the meaning ascribed to them in this Section except where the context clearly indicates a different meaning:
FINANCIAL TRANSACTION CARD: Any instrument or device, whether known as a credit card, credit plate, charge plate, courtesy card, bank services card, banking card, check guarantee card, debit card, electronic benefit system (EBS) card, electronic benefit transfer (EBT) card, assistance transaction card, or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining credit, money, goods, services, public assistance benefits, or anything else of value, and includes the account or identification number or symbol of a financial transaction card.
THIRD-PARTY GIFT CARD: A reloadable or non-reloadable prepaid card sold at retail establishments and used to make purchases via any credit card, bank card, or other monetary card network, for which the value is decreased upon each purchase.
RETAIL ESTABLISHMENT: A physical place of business in which consumer merchandise is sold to the general public.
PERSON: An individual, partnership, limited partnership, limited liability company, corporation, or other legal entity.
PROOF OF IDENTIFICATION: A driver’s license, Minnesota identification card number, or other identification document issued for identification purposes by any state, federal, or foreign government if the document includes the person’s photograph, full name, birth date, and signature.
SELL: To transfer to another in exchange for monetary consideration through the use of a financial transaction card.
C. Identification Verification Required: Any person that sells a third-party gift card to an individual on behalf of a retail establishment, including an agent, employee, or other representative of the retail establishment, shall require that the individual purchasing the third-party gift card display proof of identification and shall verify that said proof of identification matches the individual’s form of payment.
D. Self-Checkout: A retail establishment shall not allow the purchase of third-party gift cards at self-checkout kiosks where customers themselves scan merchandise and pay without the assistance of an employee of the retail establishment.
E. Enforcement; Violations: Penalties for violations shall be enforced against the retail establishment and shall subject the violator thereof to the penalty provisions under Title 1, Chapter 3 of this Code.