Thanks to intrepid
NYTimes investigative team for spotting the
The Hidden Price of Prepaid Debit...
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...
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