Stewart Stockdale, Western Union’s head of global consumer services, says that prepaid card fees are “out of whack” and that there are too many of them. The industry risks losing many potential customers because of the fees, he told American Banker.
“I’m not suggesting that people don’t have to have good returns. I’m in the business of making money too,” he said.
But by charging “inordinate amounts of fees,” some prepaid card providers have “set the industry back,” Stockdale said, because potential customers stop using the cards once they find out how much they’ve been charged.
The prepaid card industry will likely face increased scrutiny over fees from the Consumer Financial Protection Bureau. It is interesting to note that the industry must balance the number of fees it charges with the amount it charges on any given fee in order to remain sustainable.
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