Adam Fagen

New Prepaid Debit Card Rules Would Add Protections, Curb Overdraft Abuse

A growing number of America’s unbanked and under-banked consumers have been turning to prepaid debit cards as an alternative to checking accounts. Between 2003 and 2012, the total amount of money deposited annually onto these cards increased from $1 billion to $65 billion, and that amount is expected to near $100 million for 2014. But those cards often come with hefty fees and lack protections of other financial products. The Consumer Financial Protection Bureau is looking to make prepaid cards safer and lest costly with a new slate of proposed rules. [More]

Suze Orman And Magic Johnson Prepaid Cards Come To An End

Suze Orman And Magic Johnson Prepaid Cards Come To An End

Lending their names to a reloadable prepaid debit card might be a hot way for celebrities to make money and take up permanent residence in their fans’ wallets, but they’re also widely criticized for their high fees and taking advantage of unsophisticated consumers. Now the cards promoted by two big names who really should have known better, Magic Johnson and Suze Orman, are shutting down. [More]

People Still Falling For Fake IRS Phone Demand Scam

People Still Falling For Fake IRS Phone Demand Scam

Remember the scam that we kept hearing about during tax season, where victims received a phone call from a person pretending to represent the Internal Revenue Service who demanded immediate payment on a prepaid debit card? People just keep on falling for it. Yes, even now that most people have turned in their tax returns. [More]

More Consumers Open To Banking Without Traditional Banks

More Consumers Open To Banking Without Traditional Banks

Is the future of banking not at banks? That might not seem too unrealistic, what with the rise in prepaid debit cards and the high number of consumers who are unable to obtain traditional banking products. [More]

No Surprise Here: Prepaid Card Fees Vary Considerably

No Surprise Here: Prepaid Card Fees Vary Considerably

There is a prepaid debit card on the market to fit just about everyone’s needs. Consumers can choose from cards with celebrity faces on them to cards from their preferred wireless provider. While prepaid cards can be convenient, and often the only option for the unbanked, they can also be littered with fees that suck up all your hard-earned cash. [More]

Can Postal Service Stay Alive By Cashing Checks & Selling Prepaid Debit Cards?

Can Postal Service Stay Alive By Cashing Checks & Selling Prepaid Debit Cards?

The once-great US Postal Service continues to sink into obscurity and financial oblivion, a destiny that will probably not be saved by all the postage stamp price increases in the world. But could the USPS keep its head above water by offering the financial services that are generally reserved for run-down strip malls? [More]

Banks Are Cashing In With Brand-Name Prepaid Debit Cards

Banks Are Cashing In With Brand-Name Prepaid Debit Cards

Who needs an actual debit card when there are hordes of prepaid debit cards on the market? That’s a question you might have to ask yourself with more retailers (and at least one wireless provider) launching their own cards. But while the branding on the front of the card might be for a store, it’s the bank behind that card that is cashing in. [More]

Cyber-Criminals Steal $45 Million, Ship It Off In Suitcases Full Of Cash

Cyber-Criminals Steal $45 Million, Ship It Off In Suitcases Full Of Cash

Since the dawn of the connected computer age, criminals in movies have easily transferred massive amounts of stolen money via computer — often while an onscreen “transaction processing” bar slowly indicates the progress of the crime. But when real-life cyber-criminals want to pay off their ringleader, they apparently do so the old-fashioned way, with a suitcase full of cash sent on a bus. [More]

(carianoff)

Scammer Threatens To Blow Up Kmart If Prepaid Debit Card Isn’t Filled

While the man in the earlier story who mentioned that he might get a machine gun and use it against the employees of a customer service call center was improperly venting his frustration, the person who called in a bomb threat to a New Jersey Kmart was just trying to scam the store out of some money. [More]

(Maulleigh)

More Than 286K People Ask McDonald’s To Stop Franchisees From Paying Employees With Debit Cards

A month after an ex-McDonald’s worker in Pennsylvania sued her former employers because they required that all employees receive their pay via a fee-laden Chase prepaid debit card, she has put together a petition asking McDonald’s leadership to put an end to the practice at McDonald’s nationwide. [More]

(Marike79)

New York Attorney General Investigating Walmart, Home Depot, Others Over Prepaid Payroll Cards

Though it’s been a point of concern with employee-rights advocates for years, the use of prepaid debit cards as a substitute for traditional payroll checks is finally getting attention from the powers that be, with the New York state attorney general’s office investigating the practice at some of the nation’s largest employers. [More]

(Marike79)

Sued McDonald’s Franchisee Now Says Employees No Longer Have To Accept Pay On Debit Card

The McDonald’s franchisees who were sued by a former employee after she was forced to accept her wages on a prepaid debit card have had a sudden change of heart, saying they will now be giving workers at their 16 McDonald’s franchises in Pennsylvania the option of receiving their pay on good old-fashioned paycheck or direct-deposit. [More]

NetSpend is the largest issuer of prepaid payroll cards.

Here’s Why Employers & Banks Love Putting Wages On Prepaid Debit Cards, And Why Employees Keep Their Pay In Shoeboxes

The recent lawsuit filed by a former McDonald’s worker against her employers has drawn a lot of national attention to issue of paying wages on prepaid debit cards, with a some people not understanding why a business would push these cards over traditional payment methords, or why an employee would have such a big problem with the cards. [More]

(Todd Kravos

Coming Soon: Withdraw Prepaid Debit Cards From The Nearest ATM

The automated teller machine is now ubiquitous and can perform most of the functions you would visit a bank branch for: withdrawing cash, transferring money, making deposits. One thing that has really never changed about ATMs is what they dispense. Cash is cash: untraceable, lightweight, and nobody charges you any fees to use it. How boring and unprofitable. [More]

(iCanHasPix)

McDonald’s HQ Says It Has Nothing To Do With Franchisee That Forces Employees To Get Paid Via Debit Card

People around the country have taken an interest in the story of a former McDonald’s employee who recently filed a lawsuit because she was told the only way she could receive her wages was via a prepaid debit card. Meanwhile, the folks at the McDonald’s corporate office are trying to put as much of a buffer between themselves and the franchisees running the store in question. [More]

(epicharmus)

Ex McDonald’s Employee Sues Because She Doesn’t Want Her Paycheck On A Prepaid Debit Card

Earlier this year, a woman in Pennsylvania was expecting to get her first paycheck from her new job at McDonald’s, but rather than an envelope containing cash or a check, she received a prepaid debit card from Chase. This did not go over well. [More]

A sample of the new ID card.

Oakland Decides It Doesn’t Need All Those Fees On Its Combination ID/Debit Cards

A few weeks back, we told you about the new photo ID cards being issued by the city of Oakland that could also be used as prepaid debit cards. We also told you about how these debit cards came loaded with sky-high fees. Now it looks like the city has decided to ditch some of these exorbitant charges. [More]

There are other, less fee-laden prepaid debit cards out there than this.

Chicago Transit Prepaid Debit Cards Also Fully Loaded With Fees

Yesterday we told you about the sky-high fees associated with the combination photo ID/prepaid debit card being issued by the city of Oakland. Now comes a report that Chicago-area residents who choose to opt in to the prepaid debit option on their transit cards will also see their cash eroded by fees. [More]