Tuesday, March 15, 2011
NetSpend's February 2011 letter to the Fed said the regulations should be structured in a way that "best protects the provision of financial services through GPR [general-purpose reloadable] cards, as it provides an extremely important point of accessibility to financial services for many underbanked Americans."
The five main comments NetSpend expressed in its letter are:
2. The proposed rule fails to tie interchange fees to the costs of a particular transaction, as required by the Act.
3. The Fed should require that networks honor the prepaid card exemptions provided in the Act.
4. The Fed needs to clarify that an exempt prepaid card category will not lose its exemption status as long as the card issuer agrees to waive fees for the first monthly withdrawal of funds by the cardholder from a proprietary network ATM.
5. The Fed needs to allow for a signature-only debit or prepaid card, and not require all covered cards to have both a signature debit routing network and an unaffiliated PIN-based network.
To access NetSpend's letter to the Fed, go to www.federalreserve.gov/SECRS/2011/February/20110209/R-1404/R-1404_020811_64281_580501021667_1.pdf .
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.