Shakopee Law Targets Gift Card Fraud; Retailers Opposed

SHAKOPEE, Minn. (AP) -- A new ordinance in Shakopee requires consumers to show a picture ID to buy Visa, Mastercard or American Express gift cards with a credit card at stores.

Police Chief Jeff Tate says the move is aimed at reducing fraud. He says fraud is among the city's top three reported crimes and increased 17% last year alone.

The City Council passed the ordinance last week. It also prohibits buying the three types of gift cards in a self-service checkout lane.

Tate says criminals favor the cards because they can get cash quickly while remaining relatively anonymous, and the transactions are largely irreversible.

The Minnesota Retailers Association opposed the ordinance, unsuccessfully urging the council to allow retailers to brainstorm solutions before creating a mandate.