II 

113TH CONGRESS 

2D SESSION S. 1903 

To provide greater fee disclosures for consumers who have prepaid cards, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 9, 2014 

Mr. WARNER introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide greater fee disclosures for consumers who have 

prepaid cards, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Prepaid Card Disclo5 sure Act of 2014’’. 

6 SEC. 2. SPENDING ACCOUNTS. 

7 (a) SPENDING ACCOUNTS.—The Electronic Fund 

8 Transfer Act (15 U.S.C. 1693 et seq.) is amended— 

9 (1) by redesignating section 923 (15 U.S.C. 

10 1693 note), relating to the effective date of the ElecVerDate Mar 15 2010 03:05 Jan 10, 2014 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1903.IS S1903

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1 tronic Fund Transfer Act, as so designated by sec2 tion 1073 of the Dodd-Frank Wall Street Reform 

3 and Consumer Protection Act (Public Law 111–203; 

4 124 Stat. 2060), as section 925; 

5 (2) by redesignating section 922 (15 U.S.C. 

6 1693r), relating to exemptions for State regulation, 

7 as so designated by section 1073 of the Dodd-Frank 

8 Wall Street Reform and Consumer Protection Act 

9 (Public Law 111–203; 124 Stat. 2060), as section 

10 923; and 

11 (3) by inserting after section 923, as so redesig12 nated, the following: 

13 ‘‘SEC. 924. SPENDING ACCOUNTS; DISCLOSURE OF FEE IN14 FORMATION. 

15 ‘‘(a) DEFINITION.—For purposes of this section, the 

16 term ‘spending account’— 

17 ‘‘(1) means a transaction account, other than 

18 as defined in section 903(2)— 

19 ‘‘(A) that is established by a consumer or 

20 on behalf of a consumer at an insured deposi21 tory institution (as defined in section 3(c) of 

22 the Federal Deposit Insurance Act (12 U.S.C. 

23 1813(c))); 

24 ‘‘(B) that contains the funds of a con25 sumer; 


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1 ‘‘(C) to which payments are to be made by 

2 a consumer, or at the direction of a consumer; 

3 ‘‘(D) to which recurring electronic fund 

4 transfers may be made, at the direction of a 

5 consumer; or 

6 ‘‘(E) from which payments may be made 

7 at the direction of a consumer through the use 

8 of a card, code, or device; 

9 ‘‘(2) includes a transaction account described in 

10 paragraph (1)— 

11 ‘‘(A) that is operated or managed by a fi12 nancial institution, or any other person; and 

13 ‘‘(B) the funds of which are— 

14 ‘‘(i) pooled with the funds of a person 

15 other than the person who established the 

16 account; or 

17 ‘‘(ii) held in a name other than that 

18 of the person who established the account; 

19 and 

20 ‘‘(3) does not include— 

21 ‘‘(A) a nonreloadable general-use prepaid 

22 card, as defined in section 915(a)(2)(A), in an 

23 amount that does not exceed $250; 


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1 ‘‘(B) a general-use prepaid card, as defined 

2 in section 915(a)(2)(A), that is solely associated 

3 with— 

4 ‘‘(i) a health plan to which section 

5 105 of the Internal Revenue Code of 1986 

6 applies; 

7 ‘‘(ii) a qualified transportation fringe, 

8 as defined in section 132(f) of the Internal 

9 Revenue Code of 1986; 

10 ‘‘(iii) a health savings account, as de11 fined in section 223(d) of the Internal Rev12 enue Code of 1986; or 

13 ‘‘(iv) any other healthcare benefit ac14 count, including a healthcare account relat15 ing to Medicare or Medicaid benefits; 

16 ‘‘(C) a gift certificate, as defined in section 

17 915(a)(2)(B); 

18 ‘‘(D) a store gift card, as defined in sec19 tion 915(a)(2)(C); 

20 ‘‘(E) an electronic promise, plastic card, or 

21 payment code or device described in clause (i), 

22 (v), or (vi) of section 915(a)(2)(D); 

23 ‘‘(F) a nonreloadable card labeled as a gift 

24 card and marketed solely as a gift card; 


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1 ‘‘(G) a nonreloadable loyalty, rebate, or 

2 promotional card; or 

3 ‘‘(H) a debit card or general-use prepaid 

4 card that has been provided to a person pursu5 ant to a Federal, State or local government ad6 ministered payment program, in which the per7 son may only use the debit card or general-use 

8 prepaid card to transfer or debit funds, mone9 tary value, or other assets that have been pro10 vided pursuant to such program. 

11 ‘‘(b) DISCLOSURE OF FEE INFORMATION.— 

12 ‘‘(1) DISCLOSURE REQUIRED.—Each financial 

13 institution or entity that is operated, managed, or 

14 controlled by a financial institution, or any other 

15 person that offers a spending account shall provide 

16 to a consumer— 

17 ‘‘(A) together with any application, offer, 

18 or solicitation for a spending account, a table of 

19 any fees that may be charged in connection 

20 with the spending account that— 

21 ‘‘(i) can be easily understood by the 

22 consumer; 

23 ‘‘(ii) is clearly and conspicuously dis24 played to the consumer before purchase; 

25 and 


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1 ‘‘(iii) includes, at a minimum, the 

2 amount and a description of each fee that 

3 may be charged in connection with the 

4 spending account by the financial institu5 tion or entity that is operated, managed, or 

6 controlled by a financial institution, or any 

7 other person; and 

8 ‘‘(B) on the card or other means of access, 

9 a toll-free telephone number and website at 

10 which the consumer may access a clear and 

11 conspicuous disclosure of the fees that may be 

12 charged in connection with the spending ac13 count. 

14 ‘‘(2) QR CODE.—The Bureau may, in accord15 ance with any rules established under paragraph (3) 

16 and in addition to the disclosure requirements under 

17 paragraph (1), require the placement of a QR code, 

18 barcode, or other similar technology on any pack19 aging, card, or other object associated with a spend20 ing account, provided that such QR code, barcode, 

21 or other technology is capable of providing an elec22 tronic link to the disclosures required under para23 graph (1) to a consumer. 

24 ‘‘(3) RULES.—Not later than 9 months after 

25 the date of enactment of the Prepaid Card DiscloVerDate Mar 15 2010 03:05 Jan 10, 2014 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1903.IS S1903

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1 sure Act of 2014, the Bureau shall establish, by 

2 rule, the headings, content, and format of the fee 

3 table and estimate required under paragraph (1).’’. 

4 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

5 Section 903 of the Electronic Fund Transfer Act (15 

6 U.S.C. 1693a) is amended— 

7 (1) by redesignating paragraph (4) (relating to 

8 the Board of Governors of the Federal Reserve Sys9 tem), as so designated by section 1084(2)(A) of the 

10 Dodd-Frank Wall Street Reform and Consumer Pro11 tection Act (Public Law 111–203; 124 Stat. 2081), 

12 as paragraph (3); and 

13 (2) in paragraph (3), as so redesignated, by 

14 striking ‘‘term ‘Bureau’ means the Bureau of Gov15 ernors’’ and inserting ‘‘term ‘Board’ means the 

16 Board of Governors’’. 

17 (c) PRESERVATION OF AUTHORITY.—Nothing in this 

18 Act shall be construed to limit, amend, or otherwise alter 

19 the authority of the Bureau of Consumer Financial Pro20 tection to issue and adopt rules, take any action, or exer21 cise any other power under the Electronic Fund Transfer 

22 Act, including with respect to general-use prepaid cards 

23 or any other electronic fund transfer product not subject 

24 to the provisions of this Act. 


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1 (d) RULE OF CONSTRUCTION RELATING TO EBT 

2 CARDS.—Nothing in this Act shall be construed to affect 

3 the regulation of electronic benefit transfers by the Bu4 reau of Consumer Financial Protection. 

Æ 


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