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

U.S. Democrats Target Prepaid Debit Card Fees…and More

Tim Sloane by Tim Sloane
December 23, 2010
in Uncategorized
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

An article publishedby Reuters describes the Democratsmisguided effort to cap fees on prepaid products ignoring theoverwhelming evidence that consumer costs increase as legislatorseliminate transactional fees (as seen with Durbin Amendment and RegE changes).

“On Friday, a group of Senate Democrats introducedlegislation that would limit the types of fees that could becharged on prepaid cards.”

Incredibly, the example used to indicate the need for thisregulation, the Kardashian Kard, follows the very model theselegislators will force on all prepaid products. The Kardashian Kardrequired a large upfront annual fee ($90.00), but then chargedno transactional fees for the year.

These legislators are now forcing a version of theKardashian pricing model on all prepaid card products when theystate “We need to ensure that families who rely on prepaid cardsare not surprised by hidden fees and are not hit with fees that aretotally unnecessary,” Democratic Sen. Robert Menendez of NewJersey, who introduced the bill, said in a pressrelease.

So what Senator Menendez’s bill recommends is that allprepaid cards follow the Kardashian Kard model: Eliminatetransactional fees and replace them with a higher single-ratecost.

Of course this legislation eliminates a cardholdersability to control costs. Rather than a cardholder being able toavoid high cost transactions to keep costs low, this legislationwill force issuers to charge higher upfront fees to cover thesetransactional costs for all cardholders – even those that don’t usethem.

This legislation is guaranteed to increase the upfrontmonthly fees charged to all cardholders, which in turn will benefitonly those cardholders that make the most intensive use of theseexpensive transactions, such as ATM withdrawals.

In short, Senator Menendez is forcing a version of theKardashian Kard on all America.

Tags: Banking ChannelsDebitMercator 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

    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
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 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 Payoneer eBook: