Is there any definitive guidance in the industry or from our regulators on these types of cards and whether or not they should/must be FDIC-insured? Is that mostly dictated by what the client wants? We don't necessarily want to set up individual deposit accounts for each cardholder, however the client is interested in the funds being insured. Not sure how to go about doing that, what needs to occur and the cost.

I have an FDIC proposed new rule from 7/19/05, however I haven't been able to find anything further that finalized this. HELP!

You can't find a finalized rule because - surprise - there was no finalized rule issued. Therefore, FDIC insurance is not required on stored value cards.

If your bank is getting into this, consider signing up for Mary Beth's Stored Value Cards webinar on the 14th, or buy the CD.