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> "Open-loop gift cards are issued under the aegis of a payments network, like Visa or American Express" It's ironic that Amex is used as an example given that
by tiffanyh 5y ago
> "Open-loop gift cards are issued under the aegis of a payments network, like Visa or American Express"
It's ironic that Amex is used as an example given that they are a closed-loop network.
- fragmede 5y agoI can spend an Amex card at any retailer that takes amex, vs my Best Buy gift card is only usable at Best Buy. In what way is Amex a closed-loop network?
- tiffanyh 5y agoWhen it comes to the network, a closed-loop network refers to the fact that the network operator is also the issuing bank (e.g. Amex, Discover). Open loop networks, the network operator is not the issuing bank (e.g. Visa, Mastercard). Patio11 is correct in that from a gift card usage perspective, Amex is open loop. But I'm just pointing out that from a network perspective, they are not.