Fed’s Duke Says Regulators Should Watch Prepaid Credit Cards

Fed’s Duke Says Regulators Should Watch Prepaid Credit Cards - Bloomberg
Federal Reserve Governor Elizabeth Duke said U.S. regulators need to protect consumers from differences among prepaid credit cards and other payment “devices.”

“It will be important for regulators to monitor, over time, the effect of differences in regulation and pricing restrictions to ensure that consumers are adequately protected regardless of their payment method preferences,” Duke said today in the prepared remarks of a speech at the Philadelphia Fed.

Consumers cannot be expected to know the differences between payments made using prepaid cards, which are subject to different regulations and fee restrictions based in part on their issuers and type, Duke said during speech at a conference on consumer credit.