Heavy regulations for prepaid debit cards open doors for bitcoin cards

Starting October 2017, prepaid debit cards in the United States will be subjected to tighter regulations.

The standard of regulation for prepaid debit cards, proposed by the Consumer Financial Protection Bureau, is expected to match “that of bank accounts and bank-issued credit cards in terms of loss compensation, fee disclosure and overdraft fees,” said National Consumer Law Center Associate Director Lauren Saunders.

In an interview with the New York Times, Saunders said, “The rules bring prepaid cards out of the shadows, with protections that in many ways are stronger than those for traditional bank accounts.” The National Consumer Law Center lobbied the Consumer Financial Protection Bureau for the new rules.

Under the new regulations, prepaid debit cards—typically sold in convenience stores—will have to start carrying a standardized disclosure of the card’s monthly fee, and detail the charges for cash withdrawals, customer service calls, reloading and other debit card-related activities. Prepaid card companies are also required to offer liability protection “on par with the coverage that applies to credit cards.”