NBPCA supports transparency in disclosure of fees to consumers, prior to purchase, so they clearly understand the terms and conditions associated with prepaid cards before their purchase. In members’ drive to set a high industry bar in delivering safe, convenient, and efficient prepaid cards to consumers, NBPCA developed disclosure and consumer best practices on general purpose reloadable cards –also known as prepaid debit cards.
The NBPCA has a tough fight ahead of it when it comes to protecting the image of prepaid cards. In addition to the Florida Attorney General’s investigation, an article by the Associated Press has once again raised the specter that prepaid cards are the tool of choice for criminals. (Read the story here: http://www.washingtonpost.com/business/new-svelte-cross-border-tool-for-money-launderers—prepaid-plastic-in-your-pocket/2011/05/22/AFs96B9G_story.html.)
Prepaid cards have become a target for the government and for consumer activists who think that they are the tool of the devil, apparently. At the same time, the government and advocates have also found that prepaid cards have been helpful for distributing benefits, cutting costs, and helping consumers, particularly those without bank accounts. The important thing is to keep the regulators and legislators from being caught up in the rhetoric to avoid throwing the baby out with the bathwater.
Read the full press release here: http://www.prnewswire.com/news-releases/the-network-branded-prepaid-card-association-encourages-fee-disclosures-and-strong-protections-for-consumers-using-prepaid-debit-cards-122347408.html