Thanks to intrepid
NYTimes investigative team for spotting the
The Hidden Price of Prepaid Debit...
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcciSxNJLjTakrYhT5yjE8iPWL6Zs2tTHNhq6cqNa3NB2zpZJ6zzdgI2HwO7C6ASheGShTpB9DerNtJhnu74Mzt01kKkXyzZQQ0weN5yj5DlXjo-2r-fdPZr2MJYZiCDzfKu2E_NYezg/s400/payomatic.jpg)
In the related piece by Andrew Martin,
Prepaid, but Not Prepared for Debit Card Fees, he notes that it seems like a great way for the unbanked to engage, but...
"It’s a very expensive way to bank," said Jean Ann Fox, director of financial services at the Consumer Federation of America. [...] For many people who do not have bank accounts, or cannot get a credit card, the appeal is irresistible, making the reloadable cards among the consumer banking industry’s fastest-growing products. But their convenience comes with a catch: fees, often hidden in the fine print. [...] The MiCash Prepaid MasterCard docks cardholders a $9.95 activation fee. Like many competitors, it then charges numerous recurring fees, including $1.75 for each A.T.M. withdrawal, $1 for each A.T.M. balance inquiry, 50 cents for each purchase, $4 for monthly maintenance, $2 for inactivity after 60 days and $1 for a call to customer service."
Read the rest for more unimpressive and exploitative details. I'm nonplussed if this is how the system embraces the unbanked...
No comments:
Post a Comment