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CFPB Field Hearing
Regarding Prepaid
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On Thursday, November 13th, the CFPB conducted a hearing on proposed regulatory changes to prepaid cards. Participants on the panel included representatives from the CFPB, the President of GreenDot, Steve Streit, and the Head of US Prepaid at Visa, Cecilia Frew.
The CFPB has proposed a rule that will tighten requirements for issuers of prepaid cards. While there are some rules in place for certain pre-paid products such as Payroll, minimal rules are in place for general purpose prepaid cards. It is anticipated that there will be approximately $100 billion loaded on Prepaid products next year.
The panel discussed how Prepaid has been traditionally used by the unbanked population in lieu of checking accounts, but the cards lack the protection of these accounts which are governed by Regulation E.
Currently 90 million Americans are unbanked.
One representative also mentioned the increasing population using Prepaid cards, in addition to checking accounts, to manage spend. The proposed regulations would apply to card transactions as well as digital cards to give consumers access to e-mobile solutions.
The regulations proposed the following changes. Timing was not discussed.
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Key terms to be noted on the outside of packaging so consumers can see terms before choosing a card
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Clear disclosures be provided to consumers
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Forced monthly statements so consumers are aware of their balance
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Late fees must be proportional to balance on the card
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Consumers should be given 21 days to repay any debt
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FDIC backing to cover loss of funds
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Removal of overdraft fees
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Protections against loss of card, theft and unauthorized transactions
You can learn more HERE.
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Earlier this month, Stephanie Corritori attended the Money 20/20 Conference in Las Vegas, NV. Below is a recap from her attendance.
It is difficult to summarize a conference that had over 7,500 attendees. I am sure Money 20/20 certainly left a profound impression on all of the participants I met.
The sheer numbers were overwhelming, the amount of advertising throughout the conference hall and the energetic vibe made for a very exciting three-day conference in Las Vegas. Thankfully, the Money 20/20 app helped guide participants to the correct panels, to the right booths and provided a live twitter feed directly in the app.
In review of Money 20/20, three core themes were prominent:
- The Customer Experience
- The Uncertainty of the CFPB and Government Regulation
- The Future of Mobile Wallets
To read the entire blog HERE.
Follow Stephanie on Twitter:
@SCorritori
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2014 Payment Guide to Holiday Shopping
(and Traveling)
by Jack Hojnar
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This is the year that cbsi's Jack Hojnar has given up - on hopes for a return to the old fashioned Holiday Season when stores started preparing for holiday shoppers in November instead of September.
But he's not given up on his Annual Holiday Shopping Guide. If anything, he's added a wrinkle to this year's post: some tips for using benefits when you travel.
So grab a glass of Nog, cozy up by the fireplace, go Old School vinyl with Vince Guaraldi's Christmas album and read this article to prepare yourself to shop smarter (and Travel Smarter) this Holiday Shopping Season.
2014 Payment Guide to Holiday Shopping (and Traveling)
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In one week, Black Friday will  descend upon the retail community as if it were Thursday - because let's face it, most everything related to Holiday Shopping starts earlier and earlier. To help you get started, check out these Black Friday apps:
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Holiday Benefits that Work
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This Holiday Shopping (and Traveling) Season, there's more than one way to trim a tree. And there's also more than one benefit to make your Holiday Shopping (and Traveling) efforts as light as a snowflake.
Some great Shopping Benefits:
- Purchase Security: buy something with your card and it is protected from damage, loss or even theft for up to 120 days from your date of purchase.
- Extended Warranty: buy something and double the manufacturer's warranty up to one year or more, just by using your card.
- Price Protection: buy something and find a better price later, you'll be refunded the difference.
- Return Protection: buy something you don't like and the retailer won't accept the return, get reimbursed; product return to administrator likely required.
Or how about Travel Emergency Assistance Services (TEAS)? Did you know that with most TEAS benefits, not only can you receive help should you lose your luggage, you can even use this service for information such as ATM locations, currency exchange rates, weather reports, health precautions, immunizations, and required passport visas.
Certain terms, conditions, and exclusions apply to every case.
To learn more about cbsi program options for Holiday Shopping (and Traveling) and how these programs can benefit your customers, contact us at [email protected].
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Using Benefits During Holidays
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Each year, we receive more positive comments regarding the usefulness of Benefits, particularly during the Holiday Season:
"I just want to say thank you so much for the help I received. I was not aware my card had that (Purchase Security) benefit. I came across the information by accident. it was a horrible experience being robbed and having the TV I purchased for my grandson stolen. Thank you again!"
- Comments regarding Purchase Security
"Great service offered, questions answered quickly and promptly, and friendly. And I'm happy that I have coverage through the Extended Warranty program on Christmas purchases. Thank you"
- Comments regarding Warranty Manager
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