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Prepaid Cards

Prepaid debit cards work like traditional debit/credit cards and access funds pre-paid for the cardholder that have been loaded by another consumer (as a gift), by the government for benefits, and by employers for payroll, rewards/incentives or health benefits.

While overall growth of prepaid cards is surging, largely due to the emergence of non-bank competition, community banks have yet to offer prepaid cards on a large scale. About half (48 percent) of community banks offer some sort of prepaid product, and those banks offer gift (43 percent), travel(24 percent), general-purpose reloadable(12 percent), and payroll cards (2 percent). However, ICBA anticipates an uptick in community bank participation given the substantial growth of the GPR card segment as part of the overall prepaid card market.


Staff Contacts: Cary Whaley

Date Title Source/Publication
10/07/2016 ICBA: CFPB Rule on Prepaid Cards Will Restrict Access NewsWatch Today
10/06/2016 CFPB Rule on Prepaid Cards Will Restrict Consumer Access News Release
10/06/2016 CFPB Issues Final Rule on Prepaid Accounts NewsWatch Today
05/04/2016 Summary of Customer Identification Program (CIP) Guidance for Holders of Prepaid Cards Summary
08/01/2006 Regulation E Final Rule on Payroll Cards The Federal Reserve
Visa Paycard Portal American Payroll Association

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