Prepaid Payment Products Regulations

Marginal note:On issuance

• 6 (1) For the purposes of subsections 452(2) and 570(2) of the Bank Act, subsection 385.18(3) of the Cooperative Credit Associations Act, subsections 482(2) and 601(3) of the Insurance Companies Act and subsection 438(2) of the Trust and Loan Companies Act, any charges for which a natural person to whom a prepaid payment product is issued becomes responsible by accepting or using the product, as well as the following information, must be disclosed in writing to that person on issuance of the product:

  • (a) the product’s terms and conditions, including the product holder’s rights and responsibilities with respect to a lost or stolen product;

  • (b) a description of how the product holder can verify the balance of the funds loaded on the product;

  • (c) a description of how the product holder may, in certain circumstances, use funds loaded on the product towards partial payment of a purchase; and

  • (d) the information referred to in paragraphs 4(1)(a) to (f) unless the product is issued in person and that information was disclosed under subsection 4(1) immediately before the issuance of the product.

• Marginal note:Other than natural person

  (2) An institution must, on issuance of a prepaid payment product to a person other than a natural person, disclose to them any charges for which they become responsible by accepting or using the product as well as the information referred to in paragraphs (1)(a) to (d).