[jeffrey]

There is a big difference between store-issued gift cards and bank-issued gift cards that is not apparent to most consumers and possibly, some state regulators. While the majority of store-issued gift cards are devoid of fees, they do not carry all the rights and protection afforded to credit cards or offer the global acceptance of bank-issued gift cards. Gift cards issued by retailers are simply designed to be a loyalty product and to presell merchandise. By contrast, bank-issued gift cards are financial instruments. While banks receive some of the merchant fees generated from the card's use, the administrative costs of issuing the card and providing benefits are generally recovered through fees such as processing fees, inactivity fees, replacement card fees, loading fees, etc. Several states are now in the process of trying to regulate these fees... [ read more at Cardweb.com ]