Prepaid Payment Products Regulations

The Prepaid Payment Products Regulations were issued by His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to various sections of the Bank Act, Cooperative Credit Associations Act, Insurance Companies Act, Trust and Loan Companies Act, and other relevant legislation. The Regulations came into force on May 1, 2014.

The Regulations apply to prepaid payment products issued in Canada by institutions. These products include payment cards that can be loaded with funds and used to make withdrawals or purchases. The Regulations set out requirements for the disclosure of information about these products to consumers, including clear and simple language, presentation of fee information, and other conditions.

Institutions are required to provide specific information to consumers before a prepaid payment product is issued, such as the name of the institution, toll-free telephone numbers, restrictions on use, fees, and expiration dates. The Regulations also prohibit institutions from increasing or imposing new fees without providing advance notice and consent.

The Regulations also address issues related to the use of funds loaded on prepaid payment products, including the imposition of maintenance fees and overdraft charges. Institutions are required to disclose the terms and conditions of these products in writing and to obtain the express consent of consumers before charging certain fees or interest.

Overall, the Prepaid Payment Products Regulations aim to protect consumers by ensuring that they have access to clear and transparent information about prepaid payment products and that institutions comply with specific requirements for the disclosure of this information.