Credit and Debit Card Ratings

CFPB Proposes Prepaid Card Rules

After a great deal of speculation, on November 13 the Consumer Financial Protection Bureau (CFPB) unveiled its proposed rules to govern the fast-growing prepaid debit card market. The proposed rules, which are open for public comment for 90 days, are an acknowledgment that more and more Americans utilize the cards to do their everyday banking.

The CFPB’s proposed rules are an effort to provide mainstream consumer protections to products that are no longer on the financial margins. “Consumers are increasingly relying on prepaid products to make products to make purchases and access funds, but they are not guaranteed the same protections or disclosures as traditional bank accounts,” CFPB director Richard Cordray said. “Our proposal would close the loopholes in this market and ensure prepaid consumers are protected whether they are swiping a card, scanning their smartphone, or sending a payment.”

As proposed, the CFPB rules would safeguard consumers under the Electronic Fund Transfer Act in ways that many credit card holders are already protected. Among the rules are:

• Access to account information: Prepaid card issuers must now either provide periodic statements of account activity or make information about account balances, transactions and fees available for free online. According to the CFPB, nearly half of all prepaid cards currently charge consumers to view their statements.

• Unauthorized charge protection: Today, when some prepaid cards are lost or stolen consumers have no protection for money lost due to fraudulent use of their account. This new rule would limit a consumer’s responsibility to $50 when a card is lost or stolen.

• Error resolution: Financial institutions must now work with prepaid card holders who find errors with their account. Specifically, the new rule obligates card issuers to investigate and resolve errors reported by customers in a timely manner. In cases when an issue can’t be resolved quickly, financial institutions must temporarily credit the disputed amount to a consumer until an investigation is complete.

• “Know Before You Owe”: One of the more nettlesome problems consumers shopping for a prepaid card encounter is an inability to compare and comprehend fees. This rules aims to change that by requiring standard disclosures, including fees for monthly account maintenance, ATM withdrawals, reloading an account and other important fees. In addition, the proposed rule also requires card issuers to make their account agreements online.

 

Author: Chris Warren

  • AmEx and Walmart Double Savings Catcher Rewards

    AmEx and Walmart Double Savings Catcher Rewards

    The rush to attract holiday shoppers and their dollars started before trick-or-treaters donned their costumes and headed out into the night. On Oct. 27, the checking account alternative card, Bluebird by American Express, announced the launch of a “Get 2X” promotion meant to entice Walmart shoppers with even bigger savings.

    Here’s how the promotion works. Walmart customers can already take advantage of the company’s Savings Catcher tool, which allows shoppers to compare the price of items they intend to buy at Walmart with the advertised prices of other national retailers. If Walmart’s Savings Catcher identifies a lower price at a rival store, Walmart customers then receive the price difference on either a Walmart Reward eGift Card or in a Bluebird account. Customers can spend the money at a Walmart store or at Walmart.com.

    The new promotion works the same way, although it gives double the benefits to Bluebird cardholders. To take advantage of the deal, which lasts through Feb. 28 of next year, customers can either go online to the Savings Catcher website or use the Walmart app and scan their Walmart receipt.



    The Savings Catcher tool works as it normally does and searches for a lower advertised price offered by competitors. If it finds a better price, Bluebird cardholders can click on “Redeem to Bluebird,” which will automatically trigger a deposit of double the savings into their account.






    The “Get 2X” promotion is a way to give Bluebird cardholders even more bang for their bucks, says Daniel Eckert, a senior vice president of Walmart Services. “Millions of customers are using Savings Catcher to ensure they are getting the best price on their everyday purchases. Now thanks to American Express, they can get even more back when using their Bluebird Card,” he says. “Bluebird is known for saving people money and now coupled with Savings Catcher, it’s going to put real money in customers’ pockets.”

Credit and Debit Card Ratings