We’ve issued an Advance Notice of Proposed Rulemaking to ask for input from consumers, industry, and others about prepaid cards and their impact on the market.
The prepaid card market is growing rapidly. As this market expands, we want to make sure consumers have information about prepaid cards so they can make the decisions that are best for themselves.
To introduce the issues we’re considering, we’ve put together a quick visual guide to prepaid cards and why we’re interested in them.
Check out the guide to learn more.
In many ways, using a prepaid card works like using a debit card linked to a bank account. Many cards have the option to receive direct deposit, withdraw cash at ATMs, and access account information online. Prepaid card users are increasingly choosing to load funds on their cards by direct deposit. This suggests that many consumers may be using prepaid cards in place of checking accounts.
While there are similarities between prepaid cards and debit cards linked to deposit accounts, there are important differences, too. Many federal rules that protect consumers who use other types of payments do not apply to prepaid cards.
As this market becomes an increasing part of consumers’ lives, your responses to our Advance Notice of Proposed Rulemaking will help us better understand the costs, benefits, and risks of using prepaid cards. Before we write any new rules, we want your input.
We want to make sure consumers understand how they work, too. We invite you to learn more about it with our guide, then to submit a comment to help us learn more, as well.
Assistant Director, Card and Payment Markets Group
The Consumer Financial Protection Bureau