Gift Card Fraud Laws Are Reaching the Packaging Line

Gift card fraud can begin long before a customer reaches the checkout. A thief removes a card from a store display, records its redemption information and returns it to the rack. Once the card is purchased and activated, the balance can be drained before the intended recipient uses it.

States are responding with laws that place greater responsibility on retailers and the physical gift card package. Maryland now requires secure packaging that shows evidence of tampering and conceals numeric codes used for activation or redemption. Its requirements took effect in 2025, with separate compliance dates for open-loop and closed-loop cards. Maryland’s Office of the Attorney General also requires retailers to display consumer warnings and train employees who regularly handle gift card sales.

New Jersey’s requirements became operative on October 1, 2025. Cards must carry a visible tampering warning, while card numbers, PINs and other information used for balance inquiries or manual redemption must be concealed or otherwise unavailable before purchase. The law allows alternatives for cards or packages equipped with technology that prevents activation after tampering or detects unauthorized redemption. The New Jersey legislation reflects how gift card security is moving beyond store procedures and into card production.

Secure packaging begins with accurate variable data. Each card may contain a unique serial number, activation barcode, PIN or redemption code. Those values must be generated correctly, printed in the proper location and assigned to the correct carrier. A secure package provides little protection if a card is paired with another card’s activation information.

Matched card-and-carrier production creates a documented relationship between the physical card, its printed carrier and the database record used for activation. Production software can track each record as it moves through printing and finishing. If a card is removed, duplicated or placed on the wrong carrier, the system should identify the sequence error before the product leaves the facility.

Concealing sensitive information also requires more control than simply applying a scratch-off coating. The PIN must be completely covered, while the surrounding print and package construction should make removal or replacement visible. Position, coverage and adhesion all affect whether that feature works as intended.

Camera inspection gives producers a way to verify these elements at production speed. A vision system can confirm the card number and activation barcode, compare them with the carrier data and inspect the location of a concealed PIN area. Products with unreadable codes, missing security features or mismatched records can be rejected automatically.

Database reconciliation closes the loop. At the end of a run, the number of accepted cards, rejected pieces and unused records should agree with the production file. That accounting helps prevent duplicate activation data from entering circulation and provides a traceable record when a retailer or card issuer investigates a problem.

Gift card laws will continue to vary by state, but the production issue is already clear. Printers and card producers need controlled variable-data workflows that keep every card, code, carrier and database record aligned from printing through final inspection.