“BBVA Compass today announced the launch of the BBVA Compass SafeSpend Card(SM), an open loop, reloadable, prepaid VISA® debit card. The BBVA Compass SafeSpend Card offers customers a low cost, full service alternative to checking accounts.”
The product is targeting more than just applicants that are turned down; and appears to be an effort to broaden the customer base that BBVA Compass can service:
“Consumers unable to obtain a checking account, parents of a young adult and routine check cashers are just a few of the individuals who will benefit from a prepaid debit card such as the BBVA Compass SafeSpend Card. There is no credit approval required to apply for the SafeSpend Card and funds can be direct deposited onto the card, transferred from an existing BBVA Compass checking account or reloaded at any VISA ReadyLink location.
‘The SafeSpend Card is a great money management tool for parents who aren’t ready to give their kids credit or debit cards,’ Director of Consumer Segment Group Jon Mulkin said. ‘We also expect the card to be popular among people who want to designate their spending money for special purchases like vacations.’ ”
From a cost perspective, a quick review of the T&C’s indicates an initial loading fee of $4, a monthly maintenance fee of $4, one free ATM withdrawal a month, and then $1 for each additional withdrawal. While these fees don’t place the product at the low-end of the cost spectrum, the product does establish the beginning of a relationship with the bank which will be valuable to some consumers.
