Prepaid Card Disclosure Act of 2014

Summary: Prepaid Card Disclosure Act of 2014 - Amends the Electronic Fund Transfer Act to extend its coverage to spending accounts (transaction accounts) established by a consumer (or on a consumer's behalf) at an insured depository institution or credit union: (1) to which recurring electronic fund transfers may be made, at the consumer's direction; or (2) from which payments may be made, at the consumer's direction, through the use of a card, code, or device (commonly referred to as prepaid cards). Treats as a spending account any similar transaction account operated or managed by a financial institution, or any other person, whose funds: (1) are pooled with the funds of a person other than the one who established the account, or (2) are held in a name other than that of the person who established the account. Excludes from the meaning of spending account: (1) any nonreloadable general-use prepaid card in an amount under $250; (2) any general-use prepaid card solely associated with a certain kind of health plan, a qualified transportation fringe, a health savings account or any other health care benefit account; (3) a gift certificate; (4) a store gift card; (5) an electronic promise, plastic card, or payment code, or device; (6) a nonreloadable card labeled as a gift card and marketed solely as such; (7) a nonreloadable loyalty, rebate, or promotional card; or (8) a debit card or general-use prepaid card that has been provided to a person pursuant to a federal, state or local government-administered payment program, in which the person may only use the card to transfer or debit funds, monetary value, or other assets that have been provided pursuant to that program. Authorizes the Consumer Financial Protection Bureau (CFPB) to require the placement of a QR code, barcode, or other similar technology on any packaging, card, or other object associated with a spending account, provided that the technology is capable of providing an electronic link to certain required disclosures to the consumer.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prepaid Card Disclosure Act of 
2014''.

SEC. 2. SPENDING ACCOUNTS.

    (a) Spending Accounts.--The Electronic Fund Transfer Act (15 U.S.C. 
1693 et seq.) is amended--
            (1) by redesignating section 923 (15 U.S.C. 1693 note), 
        relating to the effective date of the Electronic Fund Transfer 
        Act, as so designated by section 1073 of the Dodd-Frank Wall 
        Street Reform and Consumer Protection Act (Public Law 111-203; 
        124 Stat. 2060), as section 925;
            (2) by redesignating section 922 (15 U.S.C. 1693r), 
        relating to exemptions for State regulation, as so designated 
        by section 1073 of the Dodd-Frank Wall Street Reform and 
        Consumer Protection Act (Public Law 111-203; 124 Stat. 2060), 
        as section 923; and
            (3) by inserting after section 923, as so redesignated, the 
        following:

``SEC. 924. SPENDING ACCOUNTS; DISCLOSURE OF FEE INFORMATION.

    ``(a) Definition.--For purposes of this section, the term `spending 
account'--
            ``(1) means a transaction account, other than as defined in 
        section 903(2)--
                    ``(A) that is established by a consumer or on 
                behalf of a consumer at an insured depository 
                institution (as defined in section 3(c) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1813(c)));
                    ``(B) that contains the funds of a consumer;
                    ``(C) to which payments are to be made by a 
                consumer, or at the direction of a consumer;
                    ``(D) to which recurring electronic fund transfers 
                may be made, at the direction of a consumer; or
                    ``(E) from which payments may be made at the 
                direction of a consumer through the use of a card, 
                code, or device;
            ``(2) includes a transaction account described in paragraph 
        (1)--
                    ``(A) that is operated or managed by a financial 
                institution, or any other person; and
                    ``(B) the funds of which are--
                            ``(i) pooled with the funds of a person 
                        other than the person who established the 
                        account; or
                            ``(ii) held in a name other than that of 
                        the person who established the account; and
            ``(3) does not include--
                    ``(A) a nonreloadable general-use prepaid card, as 
                defined in section 915(a)(2)(A), in an amount that does 
                not exceed $250;
                    ``(B) a general-use prepaid card, as defined in 
                section 915(a)(2)(A), that is solely associated with--
                            ``(i) a health plan to which section 105 of 
                        the Internal Revenue Code of 1986 applies;
                            ``(ii) a qualified transportation fringe, 
                        as defined in section 132(f) of the Internal 
                        Revenue Code of 1986;
                            ``(iii) a health savings account, as 
                        defined in section 223(d) of the Internal 
                        Revenue Code of 1986; or
                            ``(iv) any other healthcare benefit 
                        account, including a healthcare account 
                        relating to Medicare or Medicaid benefits;
                    ``(C) a gift certificate, as defined in section 
                915(a)(2)(B);
                    ``(D) a store gift card, as defined in section 
                915(a)(2)(C);
                    ``(E) an electronic promise, plastic card, or 
                payment code or device described in clause (i), (v), or 
                (vi) of section 915(a)(2)(D);
                    ``(F) a nonreloadable card labeled as a gift card 
                and marketed solely as a gift card;
                    ``(G) a nonreloadable loyalty, rebate, or 
                promotional card; or
                    ``(H) a debit card or general-use prepaid card that 
                has been provided to a person pursuant to a Federal, 
                State or local government administered payment program, 
                in which the person may only use the debit card or 
                general-use prepaid card to transfer or debit funds, 
                monetary value, or other assets that have been provided 
                pursuant to such program.
    ``(b) Disclosure of Fee Information.--
            ``(1) Disclosure required.--Each financial institution or 
        entity that is operated, managed, or controlled by a financial 
        institution, or any other person that offers a spending account 
        shall provide to a consumer--
                    ``(A) together with any application, offer, or 
                solicitation for a spending account, a table of any 
                fees that may be charged in connection with the 
                spending account that--
                            ``(i) can be easily understood by the 
                        consumer;
                            ``(ii) is clearly and conspicuously 
                        displayed to the consumer before purchase; and
                            ``(iii) includes, at a minimum, the amount 
                        and a description of each fee that may be 
                        charged in connection with the spending account 
                        by the financial institution or entity that is 
                        operated, managed, or controlled by a financial 
                        institution, or any other person; and
                    ``(B) on the card or other means of access, a toll-
                free telephone number and website at which the consumer 
                may access a clear and conspicuous disclosure of the 
                fees that may be charged in connection with the 
                spending account.
            ``(2) QR code.--The Bureau may, in accordance with any 
        rules established under paragraph (3) and in addition to the 
        disclosure requirements under paragraph (1), require the 
        placement of a QR code, barcode, or other similar technology on 
        any packaging, card, or other object associated with a spending 
        account, provided that such QR code, barcode, or other 
        technology is capable of providing an electronic link to the 
        disclosures required under paragraph (1) to a consumer.
            ``(3) Rules.--Not later than 9 months after the date of 
        enactment of the Prepaid Card Disclosure Act of 2014, the 
        Bureau shall establish, by rule, the headings, content, and 
        format of the fee table and estimate required under paragraph 
        (1).''.
    (b) Technical and Conforming Amendments.--Section 903 of the 
Electronic Fund Transfer Act (15 U.S.C. 1693a) is amended--
            (1) by redesignating paragraph (4) (relating to the Board 
        of Governors of the Federal Reserve System), as so designated 
        by section 1084(2)(A) of the Dodd-Frank Wall Street Reform and 
        Consumer Protection Act (Public Law 111-203; 124 Stat. 2081), 
        as paragraph (3); and
            (2) in paragraph (3), as so redesignated, by striking 
        ``term `Bureau' means the Bureau of Governors'' and inserting 
        ``term `Board' means the Board of Governors''.
    (c) Preservation of Authority.--Nothing in this Act shall be 
construed to limit, amend, or otherwise alter the authority of the 
Bureau of Consumer Financial Protection to issue and adopt rules, take 
any action, or exercise any other power under the Electronic Fund 
Transfer Act, including with respect to general-use prepaid cards or 
any other electronic fund transfer product not subject to the 
provisions of this Act.
    (d) Rule of Construction Relating to EBT Cards.--Nothing in this 
Act shall be construed to affect the regulation of electronic benefit 
transfers by the Bureau of Consumer Financial Protection.