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New regs for prepaid cards

The fine print on prepaid cards just got a bit bigger thanks to new regulations that came into force on May 1, 2014.

Under the federal Prepaid Payment Products Regulations, an information box that clearly discloses fees must be included on the packaging of prepaid cards issued by federally regulated financial institutions.

Consumers won’t have to worry about cards expiring either. Funds on any cards in circulation as of May 1, 2014 (regardless of when they were issued) cannot expire and maintenance fees cannot be levied for at least a year after the card is activated.

The Financial Consumer Agency of Canada (FCAC) will enforce compliance with the new regs. For more about prepaid cards, read “Playing with a full deck.”◊