5 things community financial institutions should know about prepaid card regulations
TMG prepaid card experts issue first in white paper series exploring the growing payment channel
DES MOINES, IA (January 5, 2017) — To address the operational impact of new prepaid card regulations, a pair of payments experts from TMG have issued a white paper exploring the new rules. Jeff Falk, TMG director of prepaid, and Jeff Stein, TMG prepaid growth consultant, say the regulations, although largely positive, may change the way some community financial institutions are issuing the cards.
“Without a doubt, prepaid cards are helping redefine the current and future consumer finance landscape,” write Falk and Stein. “While extra attention from consumer protection groups may cause temporary slowdowns as card issuers and providers adjust, new rules are also helping ensure prepaid cards continue to be viable, consumer-friendly financial tools.”
Falk and Stein take a closer look at five areas to which, they say, community financial institutions should pay particular attention. These include changes to prepaid card disclosures, periodic statements, error resolution and consumer protections.
“Credit unions and community banks desiring to provide smart and convenient financial solutions to target consumer segments may be well positioned to participate in the prepaid card resurgence,” the authors suggest. “The key is to partner with experienced prepaid card experts who are up-to-speed on regulatory requirements and forward-thinking about how prepaid cards are shaping future payment methods.”
The paper, which includes insight from Cindy Williams, regulatory and compliance vice president at TMG sister company PolicyWorks, is first in a series of white papers TMG plans to publish on prepaid cards. Credit unions and community banks interested in launching or evolving a prepaid card program are encouraged to download the paper at www.tmg.global/trending. Click “Prepaid” to access the paper, “5 Things to Know About Prepaid Card Regulations.”
About TMG
TMG is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.tmg.global.
