Prepaid Card Regulations take effect May 1

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Ottawa: Prepaid Payment Products Regulations came into effect on May 1. The Prepaid cards which are available through financial institutions and at retail commercial outlets can be used to make purchases or withdraw funds via a payment network such as American Express, MasterCard or Visa. The new rules will ban maintenance fees for at least one year after the card is activated and will ensure that funds for a prepaid card never expire.

The new regulations apply to all federally regulated financial institutions, such as banks. The Financial Consumer Agency of Canada (FCAC) is responsible for overseeing and enforcing compliance with these regulations. FCAC has worked with federally regulated financial institutions that offer prepaid cards to ensure that the new requirements are fully implemented.