Credit Card Accountability Responsibility and Disclosure Act

Created by J.P. Morgan Treasury Services


What has the CARD Act changed?

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) is aimed at establishing fair and transparent practices relating to the extension of credit under an open end consumer credit plan. Consumers will gain more protection through new rules on interest rate increases and increased disclosure notices. The law also affects companies that issue gift cards and certain types of prepaid cards. Gift card issuers are prohibited from setting expiration dates less than five years after the card is purchased. They will also be prohibited from charging dormancy, inactivity and service fees unless the card has not been used for at least 12 months.


Who will the CARD Act affect and how?

The law provides enhanced protections to consumer gift card users and users of certain other types of prepaid cards. Issuers of gift cards and other affected prepaid cards must evaluate their offerings in light of the revised law.


What won't the CARD Act affect?

Credit cards issued to employees under bona fide employer corporate card programs (such as travel and expense cards) are not the subject of this legislation.


What can you do?

If you are a retailer that offers gift cards or prepaid cards, you need to understand the rules that govern the cards you currently issue to ensure you are in compliance with the new legislation.


To learn more about how Chase's solutions can help you,
please contact us or call your Commercial Banker.