Gift cards, vouchers and loyalty programmes

• Directive (EU) 2015/2366 — PSD2 and the limited network exclusion
• Regulation (EU) 2016/679 — GDPR, Article 27
• Directive 2011/83/EU — consumer rights
• Directive (EU) 2019/2161 — Omnibus
• Directive 2009/110/EC on electronic money

Who has to appoint one

Businesses outside the Union issuing gift cards, vouchers or loyalty points usable in the EU. The payment services question is decisive: instruments usable only within a limited network or for a limited range of goods can be exempt, but the exclusion is narrow and must be notified above a threshold.

Thresholds and exemptions

The limited network exclusion requires notification to the national competent authority where the total value of payment transactions over the preceding twelve months exceeds €1 million.

What must appear on the label

Not physical. Terms setting out the validity period, the fees, the redemption conditions and the consequences of expiry, plus the representative in the privacy notice.

Marketplace fields

Payment providers and platforms verify the payment services position before onboarding, and consumer authorities have acted against short expiry periods and dormancy fees in several member states.

Documentation you must hold

Legal analysis of the payment services position with the limited network notification where the threshold is exceeded, terms and conditions compliant with consumer law, Article 30 records for the loyalty data, the Article 27 designation, and unclaimed balance accounting.

Standards and testing

Not applicable.

Language requirements

Terms, expiry information and redemption conditions in the language of each market served.

When it applies

Notification of the limited network exclusion once the threshold is passed. Consumer information before purchase.

How long records are kept

Loyalty and transaction data for the period necessary and for accounting purposes, with profiling data minimised.

What happens if you do not comply

Supervisory action from financial regulators including a requirement to seek authorisation as an electronic money institution, GDPR fines, and consumer law penalties for unfair expiry terms, which several national courts have struck down.

Who enforces it

National financial supervisors, consumer protection authorities and data protection authorities.

Where the boundary lies

Loyalty points that can be exchanged for goods from third parties, or converted to cash, generally fall outside the limited network exclusion and into regulated territory. Expiry periods shorter than those permitted nationally are treated as unfair terms regardless of the payment analysis.

Questions we are asked

Is a gift card electronic money?

It can be. The limited network exclusion covers instruments usable only in a specific network or for a limited range of goods, and it must be assessed and, above the threshold, notified.

Can we set a one-year expiry?

Several member states restrict short expiry periods and dormancy fees on vouchers, and national courts have found them unfair. Check per market.