Consumer Banking and Payments Law: 7.2.1 What Is a Prepaid Card or Prepaid Account?
The term “prepaid card” does not have a clear, uniform meaning. Specific regulatory definitions are discussed in the context of the relevant regulation. The CFPB’s prepaid accounts rule (hereafter “the prepaid rule”), effective April 1, 2019, uses the term “prepaid account” and has a precise definition of accounts covered by that rule. The Regulation II rules governing interchange fees use the term “prepaid card” and cover a narrower set of devices.5