Visa To Set Standards for Prepaid Cards
Visa is planning to create a designation for its prepaid debit cards that meet “consumer friendly standards.” The goal is to assist consumers in picking the right prepaid card for their needs.
Currently, there are no rules about how prepaid cards must disclose their fees and terms. Many card issuers have been under scrutiny lately because of poorly disclosed fees on their prepaid cards. Visa wants to make their prepaid cards more transparent by putting them under a special designation.
That designation will be offered for “general purpose” reloadable cards that meet the following requirements: the card must cover all basic activities, such as in-store purchases and in-network ATM withdrawals, under a flat monthly fee. These fees vary from one card to the next and currently range from $2 to $15.
Cards that meet these requirements will receive a seal that will be visible on card packaging and materials. The designation was developed in conjunction with the Center for Financial Services Innovation and The Pew Charitable Trusts.
“There’s still a lot of noise around these cards. Our intention is to create a product standard that clarifies that,” Cecilia Frew, head of prepaid products for Visa in the United States, said in a statement.
If you will be in the market for a prepaid Visa card in the coming months, your search could get a lot easier.