Q: Is a card considered a "general-use prepaid card" if the cardholder is not charged a fee for the card and receives the card prior to funds being loaded on the card?
A: Yes. A "general-use prepaid card" includes a card that is provided to the cardholder without underlying funds and for which the issuer authorizes use of funds that are subsequently loaded on the card. (Added October 24, 2011)
This Q&A was obtained from FRB’s website, in a section for Regulation II (Debit Card Interchange Fees and Routing) Frequently Asked Questions, which may be found here: