Third-Party Gift Card Ordinance

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.