EMV Rules Make Finding Some Gift Cards Tougher

March 10, 2016         By: Steven Anderson

Gift cards make, as the name suggests, a wonderful gift.

Leave aside the carpers who claim they’re the height of lazy and thoughtless, gift cards let the generous folks handing them out pick up the tab at a favorite restaurant or store, or even take on a necessary expense to free up cash to be used elsewhere.

The recent move to Europay, MasterCard, Visa (EMV) rules, however, has made it a little tougher to find some gift cards, thanks to the impact the rules have on the issuer.

The EMV rules have left some stores reconsidering gift cards in a variety of ways; some won’t issue gift cards any more altogether, but others are requiring cash-only purchases, or just reducing the total amount that a gift card can be issued for, in a bid to protect themselves.

However, the versatility of gift cards also makes them a prime target for criminals, who use stolen credit cards to buy gift cards, and essentially launder money rapidly.

That never used to be a big problem until the EMV change, where those who haven’t upgraded terminals to EMV compatibility are now on the hook.

This is a problem for some, but not a problem for others; smaller stores and restaurants in particular have been slow to make the jump thanks to low perceived threat and high costs of upgrade.

It’s clear that there are a lot of ways to beat that problem; cash or cash equivalents for purchase, limited amounts—criminals buying a whole pot of $10 gift cards might as well wear a “I’m Buying This With a Stolen Credit Card” sign on their backs—and the like.

These might be a bit inconvenient for customers, but they’re minor inconveniences, and fairly easily accommodated. Getting rid of gift cards altogether is a much worse notion; this year alone, gift cards are expected to represent $651 billion in business, and that’s business no one wants to lose.

The EMV move has meant more than a few changes for businesses and customers alike, and gift cards are no different. With a few basic protection methods in place, risks should be kept to a minimum for business, even without having to keep gift cards out of the picture.