Prepaid Law

  • The Community Reinvestment Act and Prepaid Cards WHY IT MATTERS Some financial institutions might be able to earn credit for prepaid card activities under the Community Reinvestment Act services test.
  • Recent Regulatory Actions Emphasize Importance of Managing Vendor Relationships WHY IT MATTERS If you are a card issuer and a third party assists in the operation of your prepaid card program, any missteps by that third party could leave your company open to liability.
  • Prepaid Card Programs that Disburse State Funds Must Comply with State Escheatment Laws WHY IT MATTERS Banks offering prepaid card programs for the disbursement of state funds must comply with state abandoned property laws, which can require careful attention because they can impose different requirements on funds disbursed onto prepaid cards, funds held by a state agency, and funds generally held by a bank.
  • Payroll Cards: Legal Compliance Basics WHY IT MATTERS Recent litigation, enforcement, and political activity related to payroll card programs suggests that legal requirements associated with these programs will continue to evolve, and demonstrates the importance of staying current on legal compliance obligations. In this article, we highlight several recent government and legal actions related to payroll card programs, and review some basic payroll card compliance issues.
  • New Payroll Card Laws in Illinois and Hawaii WHY IT MATTERS State lawmakers in Illinois and Hawaii have passed legislation that contains restrictions on payroll cards, continuing a trend of increased focus on payroll card practices at both the federal and state level.
  • MasterCard Introduces Payroll Card Standards WHY IT MATTERS New payroll card programs will be required to comply with the standards starting July 1, 2014, while existing programs will be required to comply by October 1, 2014.
  • IRS Issues Proposed Rule on Calculation of Minimum Value WHY IT MATTERS The IRS proposed rule would not count wellness program rewards or premium reductions toward the requirement that employer-sponsored health insurance plans offer a “minimum value” of coverage.
  • FinCEN Issues Guidance on Application of Regulations to Convertible Virtual Currencies WHY IT MATTERS The new FinCEN guidance serves as a reminder that, as payment methods evolve, FinCEN will continue to look at the substance of transactions to determine whether parties should be regulated as money services businesses.
  • Federal Preemption of State Unclaimed Property Laws WHY IT MATTERS Issuers of prepaid cards have concerns about conflicting requirements of Regulation E’s gift card provisions and state unclaimed property laws. This CFPB determination suggests that the CFPB will use its preemption authority narrowly in this area, which means that the industry will continue to struggle with conflicting federal and state legal requirements for prepaid cards.

Related Features

PaymentsJournal Library
Browse Sessions: