FOSTER CITY, Calif. (6/4/14)--Visa Inc. announced Tuesday a new designation for reloadable prepaid cards, aiming to simplify fees and improve consumer protection. The designation was developed in conjunction with the Center for Financial Services Innovation and The Pew Charitable Trusts.
Simplified fees mean that cardholders will be charged a flat monthly fee that includes all basic activities. No fees will be charged for declined transactions, customer service, in-network ATM withdrawals, balance inquiries, PIN or signature transactions, or overdrafts.
There will also be a quick-use guide provided to consumers to find the lowest-cost way to use the prepaid cards.
Other consumer protections on the cards include:
Prepaid programs must meet a set of standards to qualify for the new Visa prepaid designation and identification seal.
Visa also announced that it will aim "to keep prepaid at the forefront of financial services innovation," which includes working with industry leaders to improve consumer financial health through education, new products and ways to safely build credit.
It also plans to work with other card networks to introduce a global tokenization standard to enhance security of digital payments, particularly for shopping on smartphones, tablets and other devices.