The fraudulent procurement of third-party gift cards/pre-paid
cards at retail establishments in the Township has become a widespread
problem. These incidents affect numerous victims, particularly the
elderly, and require considerable law enforcement resources to investigate.
By adopting these provisions, the Township Commissioners desire to
protect the health, safety, and welfare of all persons living in the
Township, as well as those visiting the Township, and operating businesses
within the Township, by deterring the fraudulent procurement of third-party
gift cards at retail establishments and conserving the limited amount
of time, energy, and resources available to local law enforcement
agencies when investigating said behavior.
The Commission finds that:
A. There has been a substantial increase in the fraudulent procurement
of third-party gift cards at retail establishments within the Township.
Third-party gift cards are oftentimes purchased by:
(1) Individuals using cloned or stolen financial transaction cards, counterfeit
checks, or through other fraudulent means.
(2) Victims of fraudsters who demand payment from their victims via gift
cards and/or the transactional information of said gift cards.
B. Due to the complex nature of cases involving fraudulent third-party
gift card procurement, local law enforcement agencies have exerted
a significant amount of time and energy into investigating these cases.
These investigations are particularly time-consuming and involve numerous
victims, resulting in a strain on the limited amount of resources
that are otherwise available to local law enforcement.
C. Requiring retail establishments to verify identification at the point
of sale is an effective way to deter criminal behavior, and to prevent
victimization of innocent citizens, particularly the elderly.
D. This section is adopted pursuant to the First Class Township Code
of the Commonwealth of Pennsylvania and the Township's inherent
regulatory authority. The provisions contained herein are reasonably
related to promoting the general welfare of the community and other
legitimate police-power objectives, both expressly identified herein
and otherwise implied.
This chapter shall be known and may be cited as the "Fraud Protection/Third-Party
Gift Card Procurement Ordinance."
The following terms are hereby defined as indicated for purposes
of interpretation, administration, and enforcement of this chapter:
FINANCIAL TRANSACTION CARD
Any instrument or device, whether known as a credit card,
credit plate, charge plate, courtesy card, bank services card, banking
card, check guarantee card, debit card, electronic benefit system
(EBS) card, electronic benefit transfer (EBT) card, assistance transaction
card, or by any other name, issued with or without fee by an issuer
for the use of the cardholder in obtaining credit, money, goods, services,
public assistance benefits, or anything else of value, and includes
the account or identification number or symbol of a financial transaction
card.
PERSON
An individual, partnership, limited partnership, limited
liability company, corporation, or other legal entity.
PROOF OF IDENTIFICATION
A driver's license, Pennsylvania identification card
number, or other identification document issued for identification
purposes by any state, federal, or foreign government if the document
includes the person's photograph, full name, birth date, and
signature.
RETAIL ESTABLISHMENT
A physical place of business in which consumer merchandise
is sold to the general public.
SELL
To transfer to another in exchange for monetary consideration
through the use of a financial transaction card.
THIRD-PARTY GIFT CARD
A reloadable or non-reloadable prepaid card sold at retail
establishments and used to make purchases via either the American
Express, MasterCard, or Visa networks, for which the value is decreased
upon each purchase.
All other sections, parts and provisions of the Code of the
Township of Muhlenberg shall remain in full force as previously enacted
and amended, except as amended hereby.
In the event any provision, section, sentence, clause or part
of this chapter shall be held to be invalid, illegal or unconstitutional
by a court of competent jurisdiction, such invalidity, illegality
or unconstitutionality shall not affect or impair the remaining provisions,
sections, sentences, clauses or parts of this chapter, it being the
intent of the Board of Commissioners that the remaining chapter shall
be and shall remain in full force and effect.
This chapter shall take effect and be in force from and after
its enactment as provided by law.