Gift Cards were introduced in 1994, by Neiman Marcus. It was a Closed Loop Card. It was barcode activated and limited to one time use only and cashback provided with any remaining balance.
Financial Accounting Standard No. 125 was issued by the Financial Accounting Standards Board to address the Extinguishment of Liabilities. This statement was effective for extinguishment of liabilities occurring after December 31,1996 and was to be applied...
The first magnetic stripe activated Gift Card was introduced by Mobil Oil in 1996. It was a Closed Loop Card with remaining balances staying on the Gift Card.
By 2002, the U.S. States began efforts to regulate fees and expirations dates regarding gift cards via consumer protection regulations and unclaimed property laws. These state laws impacted the use of traditional accounting methods addressing unused card...
In 2004, Target rolled out a new Gift Card which did not have Back-End Fees or Expiration Dates with an accompanying marketing plan. This joined regulatory pressure in pushing issuers of Gift Cards to cease using Back-End Fees and Expiration...
