Oct 31, 2012 Sean Albert
Though prepaid cards are not currently regulated by lawmakers, many providers of these services fear that this will not last. In Canada, officials are already beginning to roll out new regulations to monitor and control prepaid card use in various areas of the North American country, The Canadian Press reports. According to the news provider, officials in Ottawa announced that they had come to agreements regarding the new statutes pertaining to prepaid cards, though their actions are not as worrisome to businesses and consumers. The source explained that the regulations make it illegal to have hidden fees and conditions, while expiration dates will also no longer be allowed. As many businesses in the United States that offer the cards work to keep fees and conditions at a minimum, these types of regulations might be a moot point for many, as industry best practices have led the way in keeping standards moral. The Canadian Press explained that this was the first step for officials in Canada to begin gaining more leverage over the prepaid card industry, and is part of a larger effort to reform its own codes regarding interchange fees for all types of plastic. Sussing out the shoddy providers
While Canada moves to eradicate incendiary forces from the prepaid card industry, competition in the United States has rapidly improved the offerings for customers. Because regulations remain low regarding the prepaid card industry, providers have much more leeway to offer affordable and attractive options to customers. Further, many businesses have started using prepaid cards for a variety of other purposes within their own operations, including expense allowances to employees.