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Non-personalized Prepaid Mastercards

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Question: 
I've been reading with great interest the two threads on BOL regarding the [Name of tax preparation service withheld] Prepaid Mastercards. We've had many questions already from customers and non-customers about getting cash advances from our branches with these cards. I am concerned particularly with the non-personalized cards (i.e., no owner name on the card) that are issued by [Name of tax preparation service withheld]. According to our information, these non-personalized cards are issued "on the spot" to the [Name of tax preparation service withheld] clients, with very little explanation. (They are given disclosures.) If a client wants to get a personalized card with their name, it takes several other steps and several more days to get the card. We believe we're mostly going to be seeing these non-personalized cards. Do we have the right to refuse to handle the non-personalized cards, especially for non-customers, or because the card is a Mastercard product are we required to accept them?
Answer: 

Based on information I've been sent concerning the MasterCard rules on cash advances, the bank must honor requests even from the bearers of these non-personalized cards. The cards do include a signature panel that should be signed and MasterCard requires that you obtain and record confirming identification before processing the request. If you follow MasterCard's requirements, you should be insulated from liability if it turns out that one of these cards was stolen. I suggest you contact your MasterCard representative and obtain clarification.

First published on BankersOnline.com 2/26/07

First published on 02/26/2007

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