Is anyone using Travelcard? My understanding is that it is a reloadable prepaid debit card that can replace travelers checks at the branch. What has your experience been? Are there compliance risks to be aware of? Any other words of wisdom?

Thanks!

We sell travel cards; they are reloadable. I completed a compliance reivew of our program a few months ago. There are quite a few compliance risks but if you have people who have a good understanding of them in the back office and the up front personnel are trained you should be ok. Compliance risks are mostly the disclosures. Refer to section 1005.20 of reg E for guidance.

We have sold travel cards for over a year with no problems. Like Soccer said, make sure they get the disclosures.

Our travel cards are reloadable. Our gift cards are not reloadable. Because the travel cards are reloadable, aren't they exempt from the disclosure rules?:

From Regulation E 1005.20(b) Exclusions. The terms “gift certificate,” “store gift card,” and “general-use prepaid card”, as defined in paragraph (a) of this section, do not include any card, code, or other device that is:

(1) Useable solely for telephone services;

(2) Reloadable and not marketed or labeled as a gift card or gift certificate. For purposes of this paragraph (b)(2), the term “reloadable” includes a temporary non-reloadable card issued solely in connection with a reloadable card, code, or other device;

(3) A loyalty, award, or promotional gift card;

(4) Not marketed to the general public;

(5) Issued in paper form only; or