Canada's New Prepaid Debit, Promotional Gift Card Rules Now in Effect
Canada this month put into effect new regulations determining how fees and charges are handled for prepaid debit and promotional gift cards. The rules, introduced in 2013, ban maintenance fees for at least a year after a card is activated and eliminate expiry dates, among other changes. According to CTV News, the regulations apply to all existing prepaid cards, regardless of purchase date.
"As part of Canada's Economic Action Plan, our government is committed to protecting consumers and saving Canadians money," said Canadian Finance Minister Joe Oliver at a news conference. "These new regulations show we are taking action to support that commitment, helping to create jobs, growth and prosperity across Canada."
The U.S. enacted similar legislation in 2009 when the Credit Card Accountability, Responsibility and Disclosure Act was signed into law.