Personal Finance

Prepaid Cards May Soon Be Issued By Banks

Comments 0 Comments

Prepaid Cards May Soon Be Issued By BanksRecent studies have found that many consumers will close their checking accounts when banks increase service fees, or add new ones. In an effort to keep customers, these financial institutions may begin soon offering them prepaid debit cards that carry lower fees, according to a report from MSN Money.

[Consumer Resource: How to Order Your Free Annual Credit Report]

Another reason for banks to begin offering these accounts to consumers is because of potential new rules related to interchange fees, the report said. While a proposed Federal Reserve Board regulation would limit the amount banks can charge retailers for processing purchases made with debit cards to just 12 cents, the same is not true of credit cards and prepaid cards. This means that more consumers using prepaid cards would increase revenues lost to the new debit card regulation.

[Featured Product: Shop for Prepaid Debit Cards on]

Some banks have already begun adding new fees for accounts linked to debit cards, and others have significantly scaled back related rewards programs. At least one major national bank is also discussing whether to set a limit on debit card purchase amounts.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Find out where you stand.
Get your FREE personalized credit report card.

Sign Up Now

Stay Connected to Our Experts

Please submit your email address to get credit & money tips & advice
from our team of 50+ experts, delivered weekly to your inbox.