PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Transparency Needs to be a Guiding Principle for Prepaid

Ben Jackson by Ben Jackson
May 20, 2011
in Uncategorized
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The recent subpoenas by the Florida Attorney general to major prepaid cardproviders again highlight the need for transparency in theprepaid card industry. The concern for the Florida AttorneyGeneral, and for a number of other prepaid industry watchers, iswhether or not consumers are being charged so-called ‘hidden’ feeson their cards.

The industry must strike a delicate balance when answering thesecharges, because most companies offer clear disclosure for theircards. However, they must always be alert for any place whereconsumers might become confused or where something might get buriedin the extensive language of a terms and conditions document. If acompany gets a lot of calls and complaints about a particular fee,at the minimum, it needs to address the disclosure of that fee, andat the maximum needs to consider eliminating it all together.

That said, these companies cannot be held accountable for consumerswho do not read the terms and conditions or who do not payattention to the ways in which they use the cards. There is aninstinct to protect the consumer on the part of government, but itis akin to speed limits. The speed limit is clearly disclosed, butthat doesn’t mean that consumers won’t exceed it. (Though consumersdon’t always know in advance how much they will pay in fees fordoing so.)

Prepaid card companies also need to be transparent at a high level.They need to be able to disclose to the government and the mediahow important their industry is by showing its size and diversity.Once it becomes clear that there are millions of cards in use thatare not leading to unfair charges against consumers, and thosecards are put to uses ranging from delivering food stamps to payingwages to helping people manage budgets, it becomes a lot easier toexplain why prepaid cards should not be legislated out ofexistence.

Tags: DebitMercator InsightsMerchant AcquiringMobile PaymentsPrepaidSocial Media
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    payments friction

    Too Much Payments Friction Can Lead to Customer Chafing

    March 28, 2023
    online fraud

    Understanding the Cost of Online Fraud and How to Prevent It

    March 27, 2023
    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the PayPal report