Third Party Sales ("TPS") represents an outstanding opportunity for a company that is trying to expand its gift card program. Many card programs use, or in the future, may use:

• Retail Third Party Sales programs like Blackhawk, InComm, and Walgreens,
• Charitable sales programs like Great Lakes Scrip Center, eScrip and other scrip programs or
• Incentive programs like Maritz and Carlson.

An unfortunate byproduct of TPS programs may be the creation of state tax nexus. TPS may create nexus by causing the retailer to have a physical presence in a state by virtue of having property and/or agents in the state.

Fortunately, CardFact enables retailers to address this pitfall. An out-of-state retailer that uses CardFact may be able to have a TPS program without placing property or agents within a state and creating nexus.