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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
03/22/2016 Agencies Issue Customer Identification Guidance on Prepaid Cards NewsWatch Today
08/01/2006 Regulation E Final Rule on Payroll Cards The Federal Reserve
Visa Paycard Portal American Payroll Association

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