Statement by the Electronic Transactions Association (ETA) on the CFPB’s Proposed Rules on Prepaid Products
November 13, 2014 – We applaud the CFPB for releasing these long awaited proposed rules for prepaid products. Prepaid debit cards are an important tool for un-banked and under-banked consumers, providing them with a secure, affordable, and convenient option to make payments and receive deposits.
The FDIC estimates that in the U.S., some 10 million households are unbanked, and another 24 million are underbanked. This is a challenge to growth here at home because access to banking services is key to economic empowerment. Access to affordable, secure financial services can boost job creation, raise income, and reduce vulnerability to theft.
While ETA is in support of transparent fee disclosures, we believe it is critical that disclosures be tailored to provide relevant information to consumers. We are also concerned that over regulation of credit options in prepaid cards will drive consumers toward more expensive alternatives. We look forward to working with the CFPB to ensure the final rule supports a competitive marketplace, where consumers have access to these important financial tools.
About ETA
The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $4.5 trillion in purchases in the U.S. and deploying payments innovations to merchants and consumers.
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