RBC drops expiry date, most fees on prepaid Visa cards in wake of federal reform

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RBC drops expiry date, most fees on prepaid Visa cards in wake of federal reform

TORONTO - Canada's largest banking group has dropped expiry dates and most of the fees on its pre-paid Visa cards.

The move by RBC Royal Bank (TSX:RY) comes four weeks after reforms for the prepaid card industry were announced by Finance Minister Jim Flaherty.

RBC says it will continue to charge a one-time flat fee of $3.95 to issue the prepaid card but all the money loaded will remain available to make purchases.

RBC says its prepaid cards will continue to show an expiry date but a new card can be requested at no charge if a balance remains after that date.

Flaherty said last month that the government believes it's not appropriate for consumers to lose money if a gift card expires after a period of time.

He said the government wants better disclosure of the terms of conditions of such cards.

Organizations: RBC Royal Bank, Visa, TSX

Geographic location: TORONTO, Canada

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