Mercator Advisory Group recently hosted a webinar in which senior prepaid analyst Ben Jackson separated fact from fiction regarding some of the myths the mainstream media reports about prepaid cards.
One of the most common myths Jackson discussed was the idea prepaid card fees are considered unreasonably high, which he argues is not the case. Even the controversial Kardashian Kard had its merits, but was presented to the public as a “gym-membership model” where users would pay all fees upfront.
From PaymentsSource:
“The Kardashians provided a great punch line and a point of reference, but if you really examine their card, they had a high upfront fee, but everything after that was free,” says Ben Jackson, senior analyst for Boston-based Mercator Advisory Group’s prepaid advisory service.
The Kard’s high up-front fee was just a lumping of six to 12 monthly fees, paid in advance. The heavy scorn heaped upon the Kardashian sisters in November of 2010 ultimately miscast the Kardashians’ intentions, Jackson says.
Jackson also addressed other myths such as:
Prepaid is an anonymous form of payment that allows terrorists to use at will.
Retailers want consumers to forget about gift cards to collect the breakage.
Prepaid cards are a tool to gouge the poor.
The prepaid industry is the Wild West when it comes to regulations.
Jackson also presented some basic facts about prepaid the media continue to get wrong. In the past week, we’ve seen misleading headlines when prepaid debit cards were referred to as prepaid credit cards. The media get the basic facts wrong, which can confuse consumers who might not know better.
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