The Fed is Messing With Accounting Again: Going After Gift Cards
Now the Fed is going after gift cards, which up until now have pretty much belonged to the accountants. What's up with that?!
The Federal Reserve stepped up its consumer protection efforts for the second time in less than a week Monday, proposing to limit the ability of gift card issuers to impose excessive fees.
The Fed proposed banning any fees for the first year and limiting gift card issuers to one fee a month if the card was not used for at least a year. It also requires clear disclosure to consumers about penalties.
Last week the central bank banned overdraft fees on banks’ automated teller machine and debit card transactions unless consumers had actively chosen to use an overdraft protection service.
The rules would also prohibit the cards from expiring before five years had passed from the date the card was issued or five years from the date additional funds were added to the card. The rules would be not be put in place until August 2010.
Instantly complicating revenue recognition. Way to go, guys.
(I totally did this last December. Butt out, it's ours)