The Assault Continues - Prepaid Cards Included in Senate's Financial Services Reform Bill - The Prepaid Press

    15 June 2010

    When the U.S. Senate passed the financial services regulatory reform package on May 20, 2010, it did so without any apparent discussion of
    prepaid cards during several days of debate leading up to the final vote. Yet, the Restoring American Financial Stability Act of 2010, S. 3217, and closed loop prepaid products. Much more telling is the inclusion of stored value or prepaid cards in key definitions. They are included in such terms as “consumer financial products or services,” which a new governmental body will regulate, and “debit cards,” which the legislation will subject to limits on interchange fees. Likewise, the bill could impact the future evolution of the product: it affects statutes and regulations that helped foster the rapid development of the industry in recent years and will probably eliminate a regulator that oversees some of the key players in prepaid card programs.