Visa, Pew Develop Voluntary Prepaid Card Standards

more+
less-
more+
less-

On June 3, Visa announced that it teamed with Pew Charitable Trusts to develop voluntary prepaid card standards and a designation for cards that meet those standards. To qualify for the designation, which Visa believes “will signify a new level of simplicity, protection and opportunity,” a prepaid card must have the following features: (i) flat monthly fee covering all basic activities; (ii) no additional charges for declined transactions, customer service, in-network ATM withdrawal or balance inquiries, PIN or signature transactions, cash back at point of sale, or overdrafts; (iii) “consumer friendly” communication of fees—e.g. fee box and disclosures; and (iv) “quick-use guide” for using the card at the lowest cost. In addition, issuers seeking the designation must provide the following consumer protections: (i) individual FDIC/NCUA insurance; (ii) Regulation E dispute resolution rights; (iii) coverage under Visa’s zero liability policy; and (iv) access to Visa’s Prepaid Clearinghouse Service to assist with fraud prevention.

 

Topics:  FDIC, NCUA, Prepaid Payment Products, Visa

Published In: Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »