Agreements & Disclosures

Highnote provides you with templates for Cardholder Agreements.

Should there be changes to the agreement, it should be redlined, meaning changes tracked, and it will undergo a collateral review.

Given this is a legal document it may take longer than the 13 to 15 business day Service Level Agreement timeframe pending the amount of redlines.

Revisions required will undergo a separate review once changes are made.

Changes should be tracked and comments should be addressed within the document.

A clean version with the approved date must be sent back to Highnote.

Once the document is approved, Highnote responds back with this confirmation.

Ensure there is clear language around closing an account, defining when this can occur and how an account becomes inactive.

Highnote provides you with templates for Short Form Disclosures.

Regulation E identifies the requirements for the short form disclosures. A model template can be found Regulation E, 1005 A-10 along with more information on the Short Form Disclosures based upon different account types.

In addition to the formatting requirements listed for the short form disclosure for Prepaid Accounts, the short form disclosure for Payroll Accounts or Card Products must include a statement regarding wage or salary payment options. For example, “You do not have to accept this payroll card. Ask your employer about other ways to receive your wages” or “You have several options to receive your wages (list options) or this payroll card. Tell your employer which option you chose.” This statement must be located at the top of the short form disclosure.

General Guidelines

• Headings must have a minimum font size of 8pt. Font size can be no larger than what is used for the single fee amount
• Single fee amount must be bolded. Minimum font size is 15pt.
• Two Tier Fee must have a minimum font size of 11 for ATM withdrawals. Font size cannot be larger than what is used for the single fee amount
• Fees must have minimum font size of 8pt. Font size cannot be larger than what is used for the single fee headings
• Additional Fee Heading must be bolded
• Explanations must have a minimum font size of 6pt. Font size cannot be larger than what is used for the Overdraft Information, FDIC Insurance, CFPB Website, and Information about Fees
• Overdraft information must be bolded. Minimum font size is 7pt and font size cannot be larger than what is used for fees
• FDIC Insurance must have a minimum font size of 7pt and cannot be larger than what is used for fees
• CFPB Website must have a minimum font size of 7pt and cannot be larger than what is used for fees
• Information about Fees must have a minimum font size of 7pt and font size cannot be larger than what is used for fees. Phone number and website URL must be bolded

Highnote provides you with templates for Long Form Disclosures.

Regulation E identifies the requirements for the short form disclosures. A model template can be found Regulation E, 1005 A-10f along with more information on the Long Form Disclosures based upon different account types.

General Guidelines

• The Title of the Card Program must be the first line
• Fees should be grouped together and organized into subheadings by categories of function
• Format must be in the form of a table
• The minimum font size must be 8pt and all fonts must be the same size
• Symbols are not permitted to explain and all explanations must be provided in the details
• A statement about FDIC Insurance must be included along with an explanation of the coverage and benefit of the coverage or consequences for lack of coverage
• A statement about CFPB Information must direct the consumer to the CFPB’s website for general information and provide the CFPB’s telephone number for consumer complaints

The USA PATRIOT Act must be disclosed when a consumer’s personal information is collected. Personal information includes: (1) customer name, (2) date of birth, (3) address, and (4) identification number. The following are guidelines concerning when and where the PATRIOT Act needs to be disclosed.

When the USA PATRIOT Act Must be Disclosed

• The PATRIOT Act must be disclosed when the first piece of personal information, mentioned above, is collected. Inclusive of Card Applications and Cardholder Agreements if CIP is performed on the cardholder
• USA PATRIOT Act must be appropriate capitalized as it is an acronym that stands for “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism”

Where the PATRIOT Act Must be Disclosed

There are three (3) options for the location of the PATRIOT Act Disclosure

• Text on the same page as the personal information
• An icon in which the consumer hovers over and the PATRIOT Act Disclosure is displayed
• A link that redirects the consumer to the PATRIOT Act Disclosure. Please note, the disclosure can only be one click/link away, meaning the consumer should only click one link to reach the PATRIOT Act Disclosure

Sample Language

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account

Highnote provides you with instructions using the Privacy Notice Online Form Builder offered by Federal Reserve. It should be provided when a customer relationship is established, meaning enter into a continuing relationship. See Regulation P, 1016.4 for when initial Privacy Notice is required for consumers.

Regulation P identifies the requirements for the Privacy Notice form. A model template can be found Regulation P, Appendix to Part 1016 along with more information on completing the Privacy Notice form.

The general rule is that you cannot share (directly or indirectly) nonpublic personal information about a consumer to a nonaffiliated third party unless the consumer opts out. Opt-out notice is not required when the product discloses nonpublic personal information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, meaning sending information to a network or processor.

Common definitions to consider when completing the Privacy Notice form:

• Affiliate is a company that controls, is controlled by, or is under common control with another company
• Affiliate Marketing is when the Program shares nonpublic information with an affiliate for marketing purposes
• Nonaffiliated Third Party is any person except (1) your affiliate or (2) a person employed jointly by you and any company that is not your affiliate