It's Illegal for Businesses That Accept Credit Cards to Deny Prepaid Cards like Chime or Cash App Cards

As cashless payment options become more popular, many consumers are turning to prepaid cards like Chime and Cash App to make purchases. However, some businesses are denying these cards as a form of payment. This practice is not only unfair, but it's also illegal.

The Truth in Lending Act (TILA) and the Electronic Fund Transfer Act (EFTA) both prohibit businesses from discriminating against a particular type of credit card or debit card. This means that if a business accepts credit cards, they must accept all types of credit cards, including prepaid cards like Chime and Cash App.

Prepaid cards work just like traditional credit or debit cards, but they are not linked to a bank account. Instead, users load money onto the card, and they can only spend what they have loaded. This makes them a popular option for people who don't have a traditional bank account or who want to control their spending.

Unfortunately, some business owners are not aware of the laws surrounding prepaid cards and may deny them as a form of payment. This is not only illegal, but it's also bad for business. By denying prepaid cards, businesses are turning away potential customers and limiting their revenue stream.

If you encounter a business that denies your Chime or Cash App card, you have the right to file a complaint with the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC). These agencies can investigate the matter and take legal action if necessary.

In conclusion, businesses that accept credit cards must also accept prepaid cards like Chime and Cash App. Denying these cards as a form of payment is illegal and can result in legal action. As a consumer, it's important to know your rights and to speak up if you encounter any discriminatory practices.