In other countries, prize-linked savings accounts are a popular vehicle used to encourage low-income people to build nest eggs. The premise is simple: saving money enters customers into a lottery, with relatively modest prizes. Since the accounts became legal in the U.S. in 2014, some banks have launched their own versions, and now Walmart and its prepaid debit cards are joining the party. [More]
prepaid debit cards
Feds Accuse NetSpend Of Misleading Customers About Prepaid Debit Cards
By 11.10.16
NetSpend, one of the nation’s largest providers of prepaid debit cards, has been accused of violating federal law for allegedly misleading users into believing that funds loaded onto these cards will be available immediately, while some users say they had to wait weeks or were never able to access their funds. [More]
Lawmakers Want Answers On Walmart Prepaid Card Glitch That Left Thousands Without Funds
By 6.28.16
When a prepared credit card system goes down, millions of unbanked American lose their ability to access funds needed to pay bills, buy groceries, and make other purchases. This scenario was illustrated last month when customers using Walmart-branded Green Dot prepaid debit cards said they had been stranded without their funds for several days, and in some cases weeks. Now, a pair of lawmakers wants to understand the debacle better and work to prevent something similar from happening again. [More]
Don’t Throw Away Prepaid Debit Cards After You Use Them To Make A Purchase
By 5.4.16
If you exhaust all the money on a prepaid debit card and have no intention of refilling it, your tendency is probably to simply discard the piece of plastic and move on with your life. But you may want to hold on to that card for a while, lest you have to jump through hoops if you return the purchase. [More]
Prepaid Debit Cards Are Not Quite As Terrible As They Used To Be
By 4.13.16
There are contexts where prepaid debit cards are useful. Consumers without bank accounts who would otherwise deal all in cash use them, and they’re also useful for distributing allowances. The problem with prepaid cards is that they impose high fees for functions like reloading, using out-of-network ATMs, or monthly fees for simply having the card. However, they’re better than they used to be, largely because at least they disclose those fees. [More]
Starbucks Launching Prepaid Card That Lets Rewards Members Earn Loyalty Points
By 3.23.16
In a bid to lure more people to sign up for its loyalty program, Starbucks is launching a prepaid debit card soon that will let users rack up rewards “stars.” [More]
Choosing The Wrong Prepaid Debit Card Can Cost You Up To $500/Year In Fees
By 6.15.15
While prepaid debit cards have long been criticized for having too many fees (and for being less than transparent about those fees), the impact of those fees will largely depend on how you use a particular prepaid card. Choosing one that’s ill-suited to your needs could cost you hundreds of dollars a year in fees that you didn’t need to spend. [More]
Forcing McDonald’s Workers To Accept Wages On Debit Cards Not Okay In PA, Says Judge
By 6.2.15
Two years ago, a Pennsylvania woman sued her former employers at McDonald’s because they forced her and other workers to accept their wages on fee-laden prepaid debit cards. Though the fast food franchisee, who runs 16 McDonald’s, later changed this policy, the lawsuit continued to move forward, and last week a judge ruled against the franchisee’s claims that the debit card requirement was completely legal. [More]
Story Of The Returned $10,000 Walmart Debit Card May Be Hoax
By 2.25.15
Earlier today, we told you about the odd story of a man in Alabama who claimed to have found a Walmart prepaid debit card containing more than $10,000 on it, and who says he did the right thing by trying to return it to the store. However, the more we learn about this story the more questions come up. [More]
New Prepaid Debit Card Rules Would Add Protections, Curb Overdraft Abuse
By 11.13.14
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
By 6.18.14
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
By 6.11.14
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
By 5.28.14
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
By 4.7.14
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?
By 1.28.14
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
By 1.24.14
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
By 11.18.13
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]
