Third-Party Gift Card Ordinance

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Thanks for your feedback. The Minnetonka City Council adopted the gift card ordinance Oct. 3, 2022.

Credit cards

The City of Minnetonka is proposing a city ordinance that requires businesses to verify identification at the point of sale of third-party gift cards.

The fraudulent purchase of third-party gift cards at retail businesses has become a widespread problem in the city. Criminals often use stolen credit cards to purchase high-dollar, prepaid gift cards before the credit card is reported stolen. The Minnetonka Police Department reports stolen credit cards are often obtained during thefts from motor vehicles. These incidents affect numerous victims and require considerable law enforcement resources to investigate.

The ordinance aims to deter the fraudulent purchase of third-party gift cards, as it:

  • Requires a business to verify identification at the point of sale by comparing the identification of the person purchasing the gift card to the name on the credit card
  • Prohibits self-checkout purchases of prepaid gift cards without employee assistance
  • Targets only Visa, MasterCard and American Express gift cards that are purchased with a credit card

Prior to drafting a final ordinance for the city council, the city is open to community feedback and information regarding the proposed ordinance. You can share your feedback and ask questions in the spaces provided below.

The City of Minnetonka is proposing a city ordinance that requires businesses to verify identification at the point of sale of third-party gift cards.

The fraudulent purchase of third-party gift cards at retail businesses has become a widespread problem in the city. Criminals often use stolen credit cards to purchase high-dollar, prepaid gift cards before the credit card is reported stolen. The Minnetonka Police Department reports stolen credit cards are often obtained during thefts from motor vehicles. These incidents affect numerous victims and require considerable law enforcement resources to investigate.

The ordinance aims to deter the fraudulent purchase of third-party gift cards, as it:

  • Requires a business to verify identification at the point of sale by comparing the identification of the person purchasing the gift card to the name on the credit card
  • Prohibits self-checkout purchases of prepaid gift cards without employee assistance
  • Targets only Visa, MasterCard and American Express gift cards that are purchased with a credit card

Prior to drafting a final ordinance for the city council, the city is open to community feedback and information regarding the proposed ordinance. You can share your feedback and ask questions in the spaces provided below.

Share feedback and information

Prior to drafting a final ordinance for the city council, the city is open to feedback and information regarding the proposed ordinance. Please share it in the space provided.

Thanks for your feedback. The Minnetonka City Council adopted the gift card ordinance Oct. 3, 2022.

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This is a very good idea. I frequently buy gift cards for family members. This ordinance will add time and some inconvenience to each transaction. The benefits of the ordinance are well worth the inconvenience. Pass it!

Kj.anderson3311 over 1 year ago

This is a great idea. I've had gift card fraud on one of my credit cards. I also purchase many for business. Cub Shakopee always checks my ID. A manager needs to view my ID and sign off for larger card purchases ($500 or so).

Tom Stockert over 1 year ago

Great idea! All for it.

Kimh over 1 year ago

Makes sense.

Nessie over 1 year ago

This is such a logical move. A minute or two on the front end to prevent the purchase makes more sense than all the time and effort by city resources after the card(s) have been purchased. Why aren't Discover cards included?

J G Thorp over 1 year ago

Great idea! If we are successful with this, hopefully the rest of the Twin Cities will follow suit. This would be a pain for point of service employees, but I think is needed and good to think out of the box in regards to this type of crime.

Cheryl over 1 year ago