Originally Posted by
Alcibiades
Durbin does not require gift cards to have PINs.
Originally Posted by
tuphat
This. The Durbin amendment was ONLY about limiting swipe fees, NOTHING to do with requiring GCs to have PINs. I still view it as a net negative, from both a MS perspective and, more generally, unneeded price fixing by the govt.
Actually that's incorrect... the Durbin Amendment is specifically the reason giftcards must have PINs.
The Durbin Amendment requires all issued bankcards to have at minimum (2) available unaffiliated card networks with which to process transactions. This has resulted in giftcards having a signature-based network and an unaffiliated PIN-based network.
Dodd-Frank Act - Section 1075, Durbin Amendment - Section 920 - "REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS" - Section (b) "LIMITATION ON PAYMENT CARD NETWORK RESTRICTIONS"
https://www.cfpbmonitor.com/wp-conte...12/Title-X.pdf
"NO EXCLUSIVE NETWORK.—The Board shall, before the end of the 1-year period beginning on the date of the enactment of the Consumer Financial Protection Act of 2010, prescribe regulations providing that an issuer or payment card network shall not directly or through any agent, processor, or licensed member of a payment card network, by contract, requirement, condition, penalty, or otherwise, restrict the number of payment card networks on which an electronic debit transaction may be processed
to—
(i) 1 such network; or
(ii) 2 or more such networks which are owned,
controlled, or otherwise operated by —
(I) affiliated persons; or
(II) networks affiliated with such issuer."
So.. dropping Durbin Amendment repeal saves our precious PIN-enabled giftcards. This is a huge win!