It's Now Against the Law in America to buy a single gift card priced at $2,000 or more

Discussion in 'General Discussion | Miles/Points' started by Max M, Apr 14, 2015.  |  Print Topic

  1. Max M

    Max M Gold Member

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    Sad times in America, when now the government is imposing restrictions on gift card purchases in the name of attempting to prevent money laundering.

    Apparently, effective today, it’s now against the law in America to now buy a single gift card for $2,000 or more. Found this out by something new that appeared today on Staples.com which never existed prior to yesterday.

    [​IMG]

    Welcome comrades to The People’s Republic of America.
     
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  2. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Can you cite the law that became effective today?
     
  3. uggboy
    Original Member

    uggboy Gold Member

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    Thanks for posting "Comrade"....:D
     
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  4. marcwint55

    marcwint55 Gold Member

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    This is not something new. It has been in effect for a few years now.
     
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  5. TravelBear

    TravelBear Gold Member

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    I would ask Staples that since they are the ones touting the regulation.
     
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  6. Wandering Aramean
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    Wandering Aramean Gold Member

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    :confused:

    Indeed, it is unfortunate that people break laws and companies choose to not want to handle the paperwork associated with tracking that versus giving up the minimal few customers/transactions they'll lose with such policies.
     
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  7. Max M

    Max M Gold Member

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    I've been to a grocery store chain that asks for ID for gift card purchases in excess of $50.

    And now I know it's because of the anti-money laundering law.
     
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  8. Max M

    Max M Gold Member

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    I would assume that it's buried somewhere in the fine print of the Patriot Act.

    With Staples it is new today. This verbiage was not there yesterday--- April 13, 2015.

    Where was the mainstream U.S. media in covering such a law taking effect? I consume a ton of various channels of American mainstream media daily, and never recall a major journalistic piece about this.

    I'd love to see an article from the mainstream media, or any legitimate news source, prior to today that shed light on this stipulation on gift card purchases.
     
  9. Max M

    Max M Gold Member

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    So you're saying this is a Staples issue, and not an actual law-- rather than an infringement of American liberty based on a law that few are aware of?
     
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  10. Wandering Aramean
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    Wandering Aramean Gold Member

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    Well, I suppose there'd have to be a law which specifically applies to gift cards for that to happen. But there isn't.

    The Feds can require certain details of cash and cash equivalent transactions to be tracked to help support money laundering efforts and track structuring and other, similar activities. It is up to each company to choose whether they wish to keep such records (and endure the cost and process burdens of such) or not. Those considerations are weighed against the anticipated loss of revenue/profits. In this case Staples has drawn a line, expecting to not lose much business with the $2,000 threshold.

    It is entirely possible that they changed their mind on this policy yesterday. And that is completely their prerogative as a business.
     
  11. Wandering Aramean
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    Wandering Aramean Gold Member

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    It is both; see above.
    It is decidedly not this. You do not have a right to buy gift cards of certain denominations.
    Whether you are aware of the law or not has nothing to do with if the law exists and how it is effected.
     
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  12. jackplum
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    jackplum Gold Member

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    I think gift cards are defined in the Patriot Act as Stored Value. There are several Federal Reserve papers/guidance on the whole subject of monetary reporting and regulations.

    I think the specific changes to these instruments happened in either March of 2012 or 2014. I lost the page I was looking at during a puppy temper tantrum
     
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  13. daninstl

    daninstl Gold Member

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  14. Max M

    Max M Gold Member

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    I get that it's illegal to buy certain types of guns [and even handguns in some U.S. cities], drugs, prostitutes [except at legal brothels in parts of NV]--- but making it illegal to buy a $2,000 gift card to a jewelry store or home improvement store for a bonafide purchase?

    Absolutely absurd.
     
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  15. marcwint55

    marcwint55 Gold Member

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    July 2011 an extension of the bank secrecy laws prohibits any gift card from having more than $2000 stored on it at any time. This applies to all merchants and includes cards that can be reloaded.
     
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  16. satman40

    satman40 Gold Member

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    I deposited some pocket change in my Chase Business account, along with some checks, 1.73, and they wanted to see my DL.

    So a 70 year old is now a drug pusher, lot of silly laws out there,

    CC and GC. Are a real joke, Credit Karma showed me with 56 CC and a 300k credit limit, who needs a 2,000 GC., and my credit score is less than 800,

    These air miles are not worth what they use to be.
     
  17. Bay Pisco Shark
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    Bay Pisco Shark Gold Member

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    Dear OP, I don't know if you're trying to pin this on the "current administration" as a political jab or not, but this might be a good read for you:
    http://www.fincen.gov/news_room/aml_history.html

    Look at the timing. I took out the meat from this excerpt.
    Bank Secrecy Act (1970)
    NIXON

    Money Laundering Control Act (1986)
    REAGAN

    Anti-Drug Abuse Act of 1988
    REAGAN

    Annunzio-Wylie Anti-Money Laundering Act (1992)
    BUSH I

    Money Laundering Suppression Act (1994)
    CLINTON

    Money Laundering and Financial Crimes Strategy Act (1998)
    CLINTON

    Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act)
    BUSH II

    Intelligence Reform & Terrorism Prevention Act of 2004
    BUSH II

    And you end up with the net result of what you saw today. Getting my $ out of the USA in a bank-to-bank wire transfer to buy overseas property in 2008 was a royal PITA.
     
  18. satman40

    satman40 Gold Member

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    There you go again trying to get political.:D

    These laws have been there before BO, Clinton and Barney gave us all credit even if we did not have a job,

    In the old days we bought things in contract, between the buyer and the seller, or borrowed from friends., and paid them back plus interest,

    Thing are not like they use to be, we paid thing off then instead of letting them go back, and seuing the seller and the loan officer...:mad:, even if we received a low interest loan...:)

    We have no problem buying property out of the country, if you have a trusted friend.,,
     
  19. Wandering Aramean
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    Wandering Aramean Gold Member

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    It is not illegal to buy or sell such. But doing so comes with certain documentation obligations for the seller. If the seller chooses to not comply with such that is their prerogative, so long as they also halt the sales.

    Staples remains free to conduct large value transactions so long as it also maintains the necessary records. Seems like it does not wish to do so any more. And that is a choice it is free to make.
     
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  20. royce242

    royce242 Silver Member

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    EXACTLY.
     
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  21. Gargoyle
    Original Member

    Gargoyle Milepoint Guide

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    So you buy $2000 worth at Staples, go across the street to Office Max/Depot and buy another $2000, then down the street to Walmart and buy another $2000. What's the big deal? I agree, the main stream media should run splash front page headlines and run Pulitzer winning investigative stores about how the big bad gubbermint is in a socialist conspiracy to it harder for us to earn points through manufactured spending.
     
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  22. satman40

    satman40 Gold Member

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    GC are nothing more than unsecured loans, and many of us have the ability to buy $300,000 in GC.

    One if these day we could have a melt down, like the housing crisis.

    As I look at FTU pushing the card game, for $249 a head, it is easy to see where this is heading.

    More of my friends are starting the Mile game, as FC tickets jump to 210k from 67,5, wife tell me we are close to a million this year, and yet, it is only 5 trips.

    A mile is sure not worth what it once was..Gov and CC Regulators will close this game, or at least tighten up it down, and tax it to death..,

    It has been a good ride...the last 20 years ,,,
     
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  23. LittleYHZ

    LittleYHZ Member

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    People had to see this coming. But at the same time I have to say from my own experience that gift cards, and using them is a great way to keep certain transactions on the clean side...
     

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