Many are turning to prepaid debit cards as bank fees escalate
As bank fees escalate, many are now turning to prepaid debit cards to stay away from the hiked up fees. Now prepaid debit cards have become the most preferred mode of payment, especially since the last few years. Earlier this week, AmEx became the first major financial company to offer the prepaid debit card.
But the complex fee schedules are another stumbling block for most cards. The other problems are related to the consumer protections to credit card customers and the building of credit history.
Now the prepaid card issuers are being investigated at least in one state. There is also rising concerns among consumer advocates who want more oversight. When the Consumer Financial Protection Bureau is launched in July, it will step up the oversight of this industry.
Suzanne Martindale who is the staff attorney at Consumers Union states that prepaid cards are currently being used by people as checking accounts. Hence the government should ideally regulate it accordingly. The non-profit group has always been concerned about the fees on these prepaid cards which are quite unfair.
According to the recent data that is available from the Fed Reserve, Americans have paid close to $140 billion for using their prepaid cards during 2009. This is a 21.5% hike every year since the last four years. As per reports from Mercator Advisory Group, the amount of cash that is loaded onto the prepaid cards is likely to increase to $552 billion by 2012, while it was only $330 million about three years ago.
Latest Prepaid & Debit Card News
The way people pay for things has changed over the past several years. Mobile payments, digital wallets, touchless credit cards, and online payments have all taken off, leaving that old-fashioned payment method, cash, in the dust.
When you’re booking a trip, how do you prefer to pay for it? If you said debit card or cash rather than credit card, you’re not alone.
If opening up your mail brings a feeling of dread, because you don’t want to see how much you owe to which credit card companies, you’re not alone. Many Americans are struggling to get out of debt, and at the beginning of the year, credit counselor and financial planners often see a surge in the number of people seeking out their advice.
Online shoppers with American Express cards will have a faster checkout experience at Delta Air Lines, Hulu, Neiman Marcus, Staples, 1-800-FLOWERS.COM, and many other sites, thanks to Amex Express Checkout’s integration with these merchants.
A survey of military families found that their number one goal was to cut back on spending and get out of debt in the coming year.