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.