Re loadable prepaid debit cards represent one of the fastest-growing segments of the financial services industry.
The total amount of branded prepaid cards is expected to exceed $440 billion by 2017, quadruple the estimated value in 2009, according to independent research commissioned by MasterCard.
Nearly one-third of consumers own some kind of prepaid card, according to a 2009 survey by the Federal Reserve Bank of Boston.
Consumer groups and some lawmakers contend that prepaid cards lack some of the protections offered by traditional bank and credit union accounts, and often include an assortment of fees that can rapidly erode a card holder’s balance.
The concerns have led to calls for greater regulation of prepaid cards.
Story by Sandra Block for USA Today
- Prepaid Credit Cards Have High Fees Weak Protection
- Prepaid Debit Cards Not Just For Unbanked Consumers
- Earn 5.1 Percent On Savings, But You Have To Work For It
- Prepaid Cards Skyrocketing in Popularity, But Beware
- Consumer Cautions on Prepaid Cards
- Magic Johnson Enters Controversial Prepaid Card Business