Q: Is a card considered a "general-use prepaid card" if the card may be used to redeem multiple promotional offers loaded onto the card that are provided by multiple unaffiliated merchants but where each particular offer loaded onto the card is redeemable only at a particular merchant?
A: No. The definition of "general-use prepaid card" in § 235.2(i) of Regulation II requires the card to be redeemable upon presentation at multiple, unaffiliated merchants for goods or services. A card that may be used to redeem multiple promotional offers but where each particular offer is redeemable only at a single merchant or group of affiliated merchants is not considered a "general-use prepaid 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: