Visa announced yesterday a new designation for consumer reload-able prepaid products that aims to simplify and clarify fees, step-up consumer protections and make prepaid solutions a valid tool for getting onto stronger financial footing.
“Consumers have been confused by an often complex prepaid landscape,” said Ryan McInerney, president, Visa Inc, noted in a released statement. “As a prepaid leader, we felt it was important to go beyond current requirements in the marketplace and bring transparency to this growing product area. This Visa designation will signify a new level of simplicity, protection and opportunity, enabling cardholders to confidently manage their spending every day.”
To qualify for the Visa prepaid designation, prepaid programs must offer things like simplified fees and transparent disclosures of them. The new designation also bans some types of feeing such as transaction decline fees, customer service fees or overdraft protection (which is not to be offered) fees among others. Once designated, cards products will receive a seal that will be visible on card packaging and materials.
“We applaud Visa’s efforts to raise the bar on quality in the prepaid industry by building on our Compass Principles,” said Jennifer Tescher, president & CEO of CFSI. “Their efforts are vital because millions of Americans are searching for tools to help them reduce financial friction, and prepaid cards can be a valuable option. We look forward to continuing to work with Visa to design and test new prepaid features and options that enable consumers to spend, save, borrow and plan effectively.”
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