NBPCA Statement in Support of New Rules Issued by FED under CARD Act
NBPCA Statement in Support of New Rules Issued by FED under CARD ActMONTVALE, N.J., March 24 /PRNewswire/ -- The Network Branded Prepaid Card Association (NBPCA), a non-profit trade association, supports the new rules issued by the Federal Reserve today regarding gift certificates, store gift cards and general use prepaid cards required by the CARD Act. However, the NBPCA does have significant concerns about the short deadline of August 22, 2010 for companies to make card products that comply with the new rules. The tight deadline will be logistically difficult to meet and may limit consumer access to what are consistently ranked as the most popular gifts during the holiday season. This will be disappointing and inconvenient for consumers and costly for retailers struggling to weather the recession.
"The Network Branded Prepaid Card Association (NBPCA) plans to continue a positive and productive dialogue with lawmakers, regulators and law enforcement to enable consumers to continue to have safe and convenient access to prepaid cards," said Kirsten Trusko, NBPCA President and Executive Director. "Consumer satisfaction with prepaid cards determines the success of our industry. Consequently, we support a regulatory framework that strikes the right balance between consumer protection and a structure allowing businesses to continue to offer these innovative card products in the marketplace."
Each day prepaid cards are used by millions of consumers, businesses and governments as a preferred payment method to reduce fraud and safely and conveniently access funds. Numerous studies indicate prepaid card users are overwhelmingly happy with the products and find their fee structures to be clear, transparent and fair. The NBPCA and its members support many of the new regulations issued on expiration dates, disclosures and fees. In fact, many companies have already implemented many of the new rules, some of which include:
- No more than one fee a month for service fees, including "activity based" fees such as ATM, reload fees, etc.
- Gift cards will now have an expiration date of 5 years from last load - and must be prominently disclosed on the card near the expiration date.
- Free replacement cards must be provided or the card issuer can give the remaining balance to the cardholder.
- A "toll free" telephone number written on the card.
- Pre-purchase disclosures must be made regarding all fees, expiration dates and cannot be changed after purchase.
The NBPCA's primary goal is to ensure consumers continue to be highly satisfied with their prepaid card experiences. The NBPCA remains committed to supporting a regulatory framework where there are fewer, not more, barriers preventing consumers from being able to choose the best possible products in the financial services marketplace.
About the NBPCA
The Network Branded Prepaid Card Association (NBPCA) is a non-profit, inter-industry trade association that supports the growth and success of network branded prepaid debit cards and represents the common interests of the many players in this new and rapidly growing payments category. For additional information, visit www.NBPCA.org.
SOURCE The Network Branded Prepaid Card Association
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