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prepaid cards

May 5, 2014

Inter National Bank, NetSpend and MetaBank are engaged in a three-way tussle that would seem to provoke significant questions about the safety and soundness of deposits held in prepaid accounts. 

In Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, the McAllen, Texas

April 29, 2014

The deciders of all things prepaid need to re-think how they speak about their consumer-facing communication tools - and it should begin with dropping the phrase "text message alert."

Text message alerts are generally used to alert a customer that he or she has just made a transaction. I enjoy the

April 1, 2014

According to some great investigative journalism from the Center for Public Integrity, it appears that the Treasury Department decided to give Comerica Bank $32.5 million when the bank found that it could not make good on its hoped-for cash flows from accounts at Direct Express.

CPI's Dan Wagner traced the story from the inception of the contract in 2008.  After an initial pilot with Chase,

March 24, 2014

Although it might seem counterintuitive, leading small bank prepaid card issuers should be praying for the day when policymakers do away with the clause in the Durbin Amendment that sets aside extra interchange for banks

March 20, 2014

I would like to offer some of my reactions to the new prepaid debit card disclosure boxes that were rolled out by the CFPB earlier this week CFPB:

1) I prefer a format that uses different font sizes to emphasize some fee items over others. That is Model 1. Some fees are

March 13, 2014

Instead of building a new Durbin-exempt prepaid debit card, Bank of America is creating a checkless checking account that is almost the same thing.  The best points of comparison to B of A's  Safe Balance are products like Liquid or GoBank.

As the name implies, deposits in a Safe Balance account are "safe" from overdraft fees. By itself, this is nothing new.

March 6, 2014

The next big thing in prepaid is about to happen and when it does, it will probably lead to more price compression and lots of competition from new players that have been previously outside of the payments system.

March 3, 2014

So when people want a prepaid card, what brand do they go to first?

NetSpend appears to be the hands-down winner.

Suprising to me is that Rush Card has consistently outpaced Green Dot. Equally surprising is the lack of interest in AMEX Bluebird.

Chase Liquid had an initial surge back in the summer of 2012, but since then it has fallen off steeply.

February 25, 2014

When Simple announced that it was going to be acquired by Spanish bank BBVA Compass for $117 million, some observers called the price modest.  After all, its investors had put $15 million into the company. The price must have been low, because it was only a modest eight-bagger.

February 21, 2014

Because of a small detail in how Treasury's Direct Express prepaid card is administered, some consumers are being obstructed from getting a loan modification. 

Paper statements from Direct Express include a blank page at the end of the document. The pages are sequenced, so a