Peoples Trust Company, part of Peoples Group, announced that certain general purpose reloadable prepaid card products to be eligible for CDIC insurance.
PTC's issuing clients now have the ability for funds loaded to eligible GPR prepaid card programs, including Payroll cards, to benefit from CDIC protection. Funds loaded to these particular prepaid card programs are held at PTC, a CDIC member institution, and are eligible for CDIC deposit protection. These eligible deposits are combined with the depositor’s other eligible deposits held at PTC, for up to $100,000 of deposit protection, per category, per depositor.
“Peoples Trust Company continues to lead with innovative solutions in the area of prepaid cards. This CDIC insurance eligibility will provide additional peace of mind for cardholders, knowing their funds can be insured, which in turn increases their confidence in using our clients’ programs”, said Howard Klein, President of Peoples Payments and Cards, part of Peoples Group. “We worked closely with CDIC to get this eligibility confirmed and appreciate their efforts and collaboration.”
Participating cardholders will now have the added benefit of their card balance protected by CDIC insurance, similarly to funds are insured in savings or investment accounts. This safeguard also has the potential to boost interest from the prepaid card industry.
The CDIC deposit insurance protection adds to the value proposition of these alternate service providers that are gaining attention from an increasing number of fintech and banking challengers entering the market. PTC expects increased interest from the prepaid card industry because of this new product feature.
Once implemented, cardholders can determine if their reloadable prepaid card is eligible for CDIC insurance by looking for the CDIC notification on the program’s website or mobile app. Peoples Trust Company is working with program managers that want to integrate this protection into their general-purpose reloadable card program features that qualify for CDIC insurance coverage.