Canada's Finance Minister Jim Flaherty takes part in a news conference in Ottawa October 24, 2012.
Credits: REUTERS/BLAIR GABLE
Under the new regulations, prepaid cards must fully disclose any fees and conditions, must not expire and eliminate any unused balance, and also can't have maintenance fees for a year after card activation.
"We want to be sure Canadians understand what fees and conditions apply to prepaid products so that they can continue making informed decisions in the day-to-day lives," Flaherty said.
The Deputy Commissioner of the Financial Consumer Agency of Canada said broadening the regulations' reach would "improve consumer awareness".
Bruce Cran, director of the Consumers' Association of Canada, said he wasn't sure what the government was reacting to, but that regulating the way prepaid cards are used couldn't be all bad.
"We're not upset by this, but we're not enthralled either."