A Consumer Financial Protection Bureau mandate kicked in this week, compelling prepaid card issuers to offer the same basic protections and services that users of bank debit cards receive. A simple fee chart will disclose how much prepaid customers pay for using ATMs and reloading their cards; and they also will be protected from fraud, unauthorized charges, and errors. “Now there is little difference between prepaid cards and bank checking accounts as far as the laws are concerned,” says Sue Brown with Mercator Advisory Group. The regulation comes as the payment option gains momentum in the United States. The volume of funds loaded onto general-use prepaid cards surged from $208 billion in 2012 to $324 billion in 2017 and could hit $428 billion by 2021, according to Mercator.
Similar Posts
FTC to Prioritize Deceptive Debt Collection in 2018
The Federal Trade Commission and Consumer Financial Protection Bureau earlier this year issued a joint…
Boomerang Buyers: More People Who Lost Homes During Housing Crisis Are Buying Again
More people who lost homes to foreclosure or short sale during the housing crisis may…
Turn the Post Office Into a Bank? First Check Japan
Legislative efforts to turn the U.S. Postal Service into a bank to provide cheap financial…
How Does Buy Now, Pay Later Affect Customers’ Credit?
This paper explores the relationship between consumers’ use of buy now, pay later (BNPL) and…
Optimism About Personal Finances Hits 16-year High: Gallup
Americans are now more upbeat about their personal finances than they have been in 16-plus…
Banks tighten credit-card standards, loosen terms for business loans: Fed survey
The numbers: About 17% of banks have eased standards and terms on business loans to…