A Market On The Brink
Overwhelming consumer demand for open-loop prepaid gift cards created a $5 billion market in four short years but if pending legislation passes, and preemption is lost, it is likely some states will see existing open-loop gift cards withdrawn entirely. Meanwhile, other states will see a dramatic increase in the price consumer pay for gift cards.
The resulting higher cost will result from the need of gift card suppliers to create a unique gift card portfolio for each state that creates a unique set of pricing....