The CFPB released a new set of rules for prepaid cards, but it may have gone too far.
Boston, January 12, 2017 – The prepaid card market has flourished in recent years; consumers currently use prepaid cards in a wide variety of ways, from giving simple gift cards to receiving governmental or medical benefits to managing their finances in lieu of using a checking account. The U.S. Consumer Financial Protection Bureau (CFPB) has released final rules for prepaid cards and also included mobile wallets and other person-to-person payment products. With the pendulum swinging from no consumer protections to all those enacted, it may have swung a bit too far. What happened to the CFPB’s proposals, and what is included in the final rules?
This Impact Note includes a checklist to help readers get started on the road to compliance. It is based on analysis of the CFPB’s published rules as well as telephone interviews with specific executives in the prepaid card industry.
This 20-page Impact Note contains seven tables. Clients of Aite Group’s Retail Banking & Payments service can download this report, the corresponding charts, and the Executive Impact Deck.
This report mentions American Express, Discover, Google, Green Dot, Mastercard, NetSpend, Square, Venmo, Visa, and Walmart.