Can You Buy Cigarettes With a Gift Card?
Uncover the complexities of using gift cards for age-restricted items like tobacco. Learn why specific rules often apply to these purchases.
Gift cards have become a widely accepted form of payment, offering convenience and flexibility for various purchases. Their widespread use spans across numerous retail sectors. This convenience often leads to questions regarding their use for all types of products, including those with age restrictions.
Types of Gift Cards and Their Use
Gift cards generally fall into two main categories: open-loop and closed-loop cards. Open-loop gift cards are branded by major payment networks, such as Visa, Mastercard, or American Express, and function much like traditional debit or credit cards. These cards are broadly accepted by merchants wherever the associated payment network is honored. They are regulated under federal laws like the Electronic Fund Transfer Act (EFTA), which imposes requirements for clear disclosures, fee limitations, and consumer protections.
In contrast, closed-loop gift cards are issued by specific retailers or brands and can only be redeemed for purchases at those particular stores. While federal regulations primarily focus on open-loop cards, some state laws provide consumer protections for closed-loop cards, addressing aspects like expiration dates and fees. Both types of cards are widely used for a variety of consumer goods, ranging from groceries and apparel to electronics and dining experiences.
Why Purchasing Tobacco with Gift Cards is Restricted
Purchasing tobacco products with gift cards is generally restricted due to age verification requirements and retailer policies. Federal law, the Tobacco Control Act, mandates age verification for tobacco sales. Retailers must check photo IDs for customers appearing under a certain age, often under 30, to ensure compliance. Gift cards, unlike debit or credit cards, are not linked to a specific individual’s identity or age, making it challenging for retailers to fulfill these legal obligations when a gift card is the sole payment method.
Many retailers implement internal policies that prohibit the use of gift cards for age-restricted items, including tobacco. These policies are designed to mitigate legal liability and prevent underage sales, even if an open-loop gift card might technically process the transaction. For instance, some major retailers explicitly state in their terms and conditions that gift cards cannot be used for tobacco products.
Even though open-loop cards operate like traditional bank cards, the overriding concerns of age verification and retailer-specific policies often prevent their use for tobacco purchases. The legal responsibility to prevent underage sales supersedes the general acceptance of these payment network-branded cards. Closed-loop gift cards are inherently limited to their issuing store, and those stores are equally subject to the same age verification laws and internal policies against tobacco sales. This means that regardless of the gift card type, the legal and operational requirements for selling age-restricted products often create barriers to using gift cards for tobacco purchases.