Can Gift Cards Be Tracked and Who Can Access the Data?

Gift cards have become a ubiquitous payment method, offering convenience for both givers and recipients. These cards function as a form of prepaid currency, allowing individuals to make purchases up to a specified value. As their popularity has grown, questions often arise regarding whether the financial activities associated with them can be tracked. This article explores the nature of the data generated and who might have access to such information.

Data Associated with Gift Cards

Every gift card generates data from its inception through its usage. Upon activation, details such as the date, time, and location where the card was purchased are recorded. As the card is used for purchases, each transaction creates data points, including the date, time, amount spent, and the merchant involved. This transactional information is linked to the card’s unique identification number.

This data is primarily stored and managed by the entity that issues the gift card or the payment network facilitating its transactions. While a record of the card’s activity is maintained, this data is tied to the card itself rather than to an individual’s personal identity. Unless a gift card is registered to a specific person or linked to a loyalty program, the transaction data remains anonymous. Therefore, while usage patterns are recorded, this does not automatically translate into personal tracking of the cardholder.

Open-Loop and Closed-Loop Gift Cards

Gift cards are categorized into two main types, which influence their data collection and traceability: open-loop and closed-loop. Open-loop gift cards, often branded with major payment network logos like Visa, Mastercard, or American Express, can be used wherever those brands are accepted. These cards operate on payment networks, allowing for broader data aggregation across merchants. The underlying network can collect transaction data from purchases.

In contrast, closed-loop gift cards are specific to a single merchant or a limited group of affiliated merchants, such as those issued by a particular retail store or restaurant chain. These cards function only within the issuing entity’s systems, meaning any data generated is confined to that specific merchant’s ecosystem. The scope of data collection for closed-loop cards is narrower, limited to transactions within their proprietary network. Even with open-loop cards, personal identity is not linked to the transaction data unless the card was purchased with identifiable information or subsequently registered by the user.

Accessing Gift Card Information

The data associated with a gift card can be accessed under specific circumstances by authorized parties. Cardholders can typically check their balance and transaction history through the issuer’s website or phone service, using the unique card number. Merchants may also access limited transaction data for purposes like returns or resolving purchase disputes. These forms of access are routine and intended to facilitate normal card usage and customer service.

Beyond routine inquiries, gift card data may be accessed during fraud investigations by the issuing financial institution or the merchant involved in a suspicious transaction. Law enforcement agencies can also request access to gift card transaction records through legal processes such as subpoenas. In these situations, access is limited to the issuing entity, the merchant where the card was used, or legally authorized government bodies. While transaction data exists and can be retrieved, linking this data to a specific person usually requires additional identifying information, such as surveillance footage or other investigative methods.