CHAPTER 604. SALE OR ISSUANCE OF STORED VALUE CARD
BUSINESS AND COMMERCE CODE
TITLE 12. RIGHTS AND DUTIES OF CONSUMERS AND MERCHANTS
CHAPTER 604. SALE OR ISSUANCE OF STORED VALUE CARD
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 604.001. DEFINITION OF STORED VALUE CARD. In this chapter,
"stored value card":
(1) means a record, as defined by Section 322.002, including a
record that contains a microprocessor chip, magnetic strip, or
other means of storing information:
(A) that evidences a promise made for monetary consideration by
the seller or issuer of the record that goods or services will be
provided to the owner of the record in the value shown in the
record;
(B) that is prefunded; and
(C) the value of which is reduced on redemption; and
(2) includes a gift card or gift certificate.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 604.002. INAPPLICABILITY OF CHAPTER. This chapter does not
apply to a stored value card that:
(1) is issued by:
(A) a financial institution acting as a financial agent of the
United States or this state;
(B) a federally insured financial institution, as defined by
Section 201.101, Finance Code, if the financial institution is
primarily liable for the card as the issuing principal; or
(C) an air carrier holding a certificate of public convenience
and necessity under Title 49, United States Code;
(2) is issued as a prepaid calling card by a prepaid calling
card company regulated under Section 55.253, Utilities Code;
(3) is distributed by the issuer to a person under an awards,
rewards, loyalty, incentive, rebate, or promotional program and
is not issued or reloaded in exchange for money tendered by the
cardholder;
(4) is sold below face value or donated to:
(A) an employee of the seller or issuer;
(B) a nonprofit or charitable organization; or
(C) an educational institution for fund-raising purposes; or
(5) does not expire and for which the seller does not charge a
fee other than a fee described in Section 604.051.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 604.003. CAUSE OF ACTION NOT CREATED. This chapter does
not create a cause of action against a person who issues or sells
a stored value card.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER B. PERMISSIBLE FEES
Sec. 604.051. FEES AND CHARGES RELATED TO ISSUANCE AND HANDLING
OF CARD. If disclosed as required by Subchapter C, the issuer of
a stored value card may impose and collect a reasonable:
(1) handling fee in connection with the issuance of or adding of
value to the card;
(2) access fee for a card transaction conducted at an unmanned
teller machine, as defined by Section 59.301, Finance Code; and
(3) reissue or replacement charge if an expired or lost card is
reissued or replaced.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 604.052. FEES OR CHARGES THAT DECREASE UNREDEEMED BALANCE
OF CARD. The issuer of a stored value card may impose or collect
a periodic fee or other charge that causes the unredeemed balance
of the card to decrease over time only if the fee:
(1) is reasonable;
(2) is not assessed until after the first anniversary of the
date the card is sold or issued; and
(3) is disclosed as required by Subchapter C.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER C. REQUIRED DISCLOSURES
Sec. 604.101. REQUIRED DISCLOSURE OF CERTAIN MATTERS APPLICABLE
TO CARD. An expiration date or policy, fee, or other material
restriction or contract term applicable to a stored value card
must be clearly and conspicuously disclosed at the time the card
is sold or issued to a person to enable the person to make an
informed decision before purchasing the card.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 604.102. REQUIRED PRINTING OF CERTAIN DISCLOSURES. In
addition to the disclosure required under Section 604.101, a
disclosure regarding the expiration of a stored value card or a
periodic fee that reduces the unredeemed value of a stored value
card must be legibly printed on the card.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 604.103. VALIDITY OF CARD SOLD WITHOUT REQUIRED
DISCLOSURES. A stored value card sold without the disclosure
required by this subchapter of an expiration date or policy, fee,
or other material restriction or contract term applicable to the
card is valid until redeemed or replaced.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.