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12-08-2015, 08:37 AM #1
Prepaid Credit Cards Increasing their Share
Based on a report by the Federal Reserve Bank of Philadelphia, 45% of millenials owned a prepaid debit card as of 2013.
Here's some resons why:
1. Some prepaid companies charge lower fees than banks.
2. Some that charge zero fees even provide customers with cool savings, budgeting and money-tracking tools online and via a mobile app.
In contrast Wells Fargo charges a $10 fee for basic checking unless you make 10 debit purchases a month.
Prepaid company owners argue that most people don't need tellers or branches with the mobile banking.
What many fail to bring up is the insurance aspect, no prepaid credit card company I know of is FDIC insured. Although, If the prepaid card issuer is a bank, then it is likely insured.
Last edited by Frank C; 12-09-2015 at 08:54 AM.
12-09-2015, 08:51 AM #2
This certainly validates the mobile and paperless banking industry. Are the big banks changing their business model in any form because of it?
12-19-2015, 07:11 AM #3