Home > 2012 > Credit Cards

Walmart & AmEx Team Up for Low-Cost Prepaid Card

Advertiser Disclosure Comments 0 Comments

A lot of attention has been paid to the cost of prepaid and traditional debit cards in recent years, and now the nation’s largest retail chain is partnering with a major financial institution to create a competitive entry into that market.

Walmart and American Express recently announced that they were going to release a new prepaid card option specifically targeted to the store’s lower-income shoppers, according to a report from Reuters. The card, known as Bluebird, will be available in all of Walmart’s 4,000 stores nationwide and the company hopes it catches the attention of its millions of customers who many financial experts would consider to be “underbanked.”

The move is something Walmart has been eyeing for a while, given its size and clout with the average American shopper, the report said. Now, it is that much closer to entering the banking market. Further, the company has also begun offering life insurance through Metlife in certain stores in both South Carolina and Georgia as a means of pilot testing a program that, if successful, could be rolled out nationwide.

“Walmart is doing everything it can to be a financial services provider to the largest number of Americans possible,” David Robertson, publisher of the payment industry publication The Nilson Report, told the newspaper.

Bluebird will be available in stores next week and will feature many things that consumers who don’t have access to traditional banking accounts may value, the report said. This includes no balance requirements and no monthly or annual fees. Further, unlike most other prepaid cards, customers will pay nothing to add money to their Bluebird accounts. The card will also be accepted wherever AmEx is, rather than just at Walmart.

The plan will also allow Walmart customers to use their cashiers as bank tellers, the report said. Further, cardholders will be able to enroll in direct deposit, and even take pictures of checks with their smartphones and deposit them remotely.

Gerri Detweiler, Director of Consumer Education for Credit.com, says there are a few things consumers should consider before signing onto a prepaid product like Bluebird.

“Understand that with a prepaid card you don’t have the same consumer protections you have when you use a credit card to make a purchase,” she says. “You can’t dispute a charge if there is a problem with something you buy on a prepaid card. Instead it’s more like paying cash for the item.”

Many companies have been working on ways to make it easier for underbanked consumers to have access to low-cost prepaid accounts, but many offerings have also been criticized for being too costly or ineffective in allowing low-income consumers to manage their finances in the way that those with traditional accounts might.

Image: matteson.norman, via Flickr

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

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.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Our Owners

Credit.com is owned by Progrexion Holdings Inc. which is the owner and administrator of a number of business related to credit and credit repair, including CreditRepair.com, and eFolks. In addition, Progrexion also provides services to Lexington Law Firm as a third party provider. Despite being owned by Progrexion, it is not the role of the Credit.com editorial team to advocate the use of the company’s other services. In articles, reporters may mention credit repair as an option, for example, but we’ll also be sure to note the various alternatives to that service. Furthermore, you may see ads for credit repair services on Credit.com, but the editorial team isn’t responsible for the creation or implementation of those ads, anymore than reporters for the New York Times or Washington Post are responsible for the ads on their sites.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team