Get money-saving tips in your inbox.

Stay on top of personal finance tips from our money experts!

News & Resources

Federal Gov't Outlines New Rules to Protect Prepaid Credit Card Holders

Dec. 3, 2013
1 mins
Young modern family with toddler son shopping in the city

New regulations on prepaid credit cards will put an end to expiry dates and curb excessive fees for their use.

On December 3, Kevin Sorenson, minister of state for finance, and Maxime Bernier, minister of state for small business introduced the regulations to address consumer complaints that terms for using the prepaid cards were unclear and card issuers were getting away with charging unfair fees.

Prepaid credit cards, as you know, are often given as gifts and can be used generally wherever credit cards are accepted. Spending is limited to the amount of money you load on the card and the purchase amount is automatically deducted each time you use it. Some users choose to top up the funds when the balance gets low.

Credit card issuers often charge consumers activation, transaction and maintenance fees for using the cards, which reduces the buying power.

The new regulations will stop issuers from charging maintenance fees for the first year. Additionally, all fees and conditions of use for prepaid cards will have to be clearly displayed on the exterior packaging.

Holiday shoppers will not benefit from the new rules this season, as they are not expected to take full effect until May 2014.

Latest life insurance articles

10 Life insurance myths debunked
Life insurance is for someone older or has kids, right? Wrong. Let’s debunk life insurance myths and learn why everyone needs some form of coverage.
6 mins read
Do you need life insurance? A primer for Canadians
Life insurance isn’t a one-size-fits all solution. But if you have dependents, it can be an important financial safety net for those you love.
7 mins read
Why life insurance should be part of estate planning for new parents
Life insurance is one of the best ways new parents can protect their family and help loved ones in the event of your unexpected death.
5 mins read

Subscribe to our newsletter

Stay on top of our latest offers, relevant news and tips!

Thanks for joining!

You'll be hearing from us shortly - stay tuned.