Prepaid Debit Card Reviews, Complaints, Etc

Author: Tameka Riley

  • Bangkok Bank Pushes Its Debit Chip Card

    Bangkok Bank Pushes Its Debit Chip Card

    Bangkok Bank is in a push, promoting its chip-enhanced debit cards to consumers in terms of safety.  The BBL intends to increase the number of their ATMs that accept the card from 8,000 to 9,000 in an effort to persuade both existing and new customers to change from their current, magnetic-strip to chip cards.  The BBL is the only Thai bank to launch a secure debit card with EMV chip technology.  EMV (Europay, MasterCard and Visa) is a global standard for cards embedded with integrated circuits.

    “Despite the added security of EMV, the fact that BBL is the only Thai bank so far to embrace this technology means that debit cards so equipped only work in BBL ATMs, and this has limited the cards’ popularity,” said executive vice president Thaweelarp Rittapirom.  “Of the bank’s total base of 14 million debit cards, only 2 million are chip cards.  Most customers still use magnetic-strip cards.”

    In addition to adding 1,000 ATMs, it will aggressively promote the benefits of chip cards to consumers, also encouraging them to use the cards for payments, not just cash withdrawals from ATMs.  The bank also announced its new brand ambassador, a famous actor and screenwriter Chantavit Dhanasevi to promote the chip debit card to Bangkokians.

    For more information, visit:  http://www.nationmultimedia.com/business/BBL-in-push-for-debit-chip-card-30207181.html

  • Say Goodbye to Paper Coupons, Receipts and Loyalty Cards

    Say Goodbye to Paper Coupons, Receipts and Loyalty Cards

    New Partnership Will Allow Coupons, Loyalty and Rewards Programs to be Tracked Directly on Your Debit/Credit Card

    The loyalty and rewards solution startup CardSpring has announced its partnership with VeriFone, the point of sale maker.  The partnership will allow CardSpring to integrate its Web service platform into VeriFone’s PAYware Connect gateway so developers can create card-linked services for any POS system interfaced with PWC.

    So what does this have to do with you and your debit/credit cards?  Developers can now create services linked to credit and debit cards using the CardSpring API, eliminating paper coupons, gift cards, loyalty programs and paper receipts.  Retailers can also leverage existing devices to add loyalty and rewards programs.

    CardSpring offers merchants loyalty and rewards programs tied to consumer credit and debit cards.  The implications for mobile commerce are important as CardSpring eliminates the need for paper and cards and keychain tags altogether.  Mobile marketers can now link their promotions to actual purchases at the point of sale instead.

    “We are excited to work with VeriFone to help retailers connect with their customers and grow their business through card-linked services,” said Eckart Walther, CardSpring’s CEO.  “Through this partnership, retailers and third-party developers will be able to leverage VeriFone’s industry-leading open payment platform to create a new generation of applications that bring the power and accountability of digital commerce tools to hundreds of millions of retail shoppers.”

    CardSpring is currently only available through a private beta program, but developers, retailers and financial institutions can request an invitation to access through CardSpring’s website.

    For more information, visit:  http://www.mobilepaymentstoday.com/article/213971/CardSpring-partners-with-VeriFone-to-tie-loyalty-to-consumers-debit-credit-cards

  • Nigeria’s National ID Cards Double Also as Debit Cards

    Nigeria’s National ID Cards Double Also as Debit Cards

    Nigeria’s New Biometric Identification Cards Can Be Used At Stores and ATM’s

    In an announcement at the World Economic Forum on Africa last month, MasterCard and the Nigerian National Identity Management Commission announced their partnership to release 13 million ID/Debit cards.  The combination government ID/debit cards will be rolled out over the next year as part of a pilot program, after which, the government hopes to deploy 120 million ID cards/debit cards to all of its adult citizens.  The ID cards contain demographic and biometric data belonging to each Nigerian citizen encoded on a microchip and linked to bank accounts. For one of the first programs of its type, Nigeria’s national ID cards double as debit cards.

    Nigeria is undergoing an economic boom fueled by new businesses and mobile phones, but there is a fear that ethnic violence and omnipresent corruption could slow down growth.  One way the Nigerian government hopes to combat this is through the tracking capabilities, security and built-in paper trail of a cashless currency.

    The cards use chip-and-pin technology more sophisticated than American debit or credit cards and “will allow cardholders to deposit funds on the card, receive social benefits, pay for goods and services, withdraw cash from all ATMs that accept MasterCard, and engage in many other financial transactions that are facilitated by electronic payments,” MasterCard’s Michael Miebach told Fast Company via email.  “In addition to the various functionalities of a Smart ID, the scheme will allow Nigerians, 70% of whom currently having no bank account, to participate in the global economy.”  Experts believe they have amazing potential and have the potential to cause a banking boom in Nigeria by connecting the over 70% of unbanked Nigerian citizens with bank accounts.

    “The reality is that combating poverty means finding ways to get people access to basic financial services and that can’t really happen without money in electronic form.  It’s not a panacea, obviously, and no one can predict if this particular program will succeed or flop.  But that doesn’t change the fact that services of this sort are desperately needed.”

    According to World Bank statistics, Nigeria has a massive 7.3% GDP growth rate—but 62.6% of the population lives below the poverty line.

    For more information, visit:  http://www.worldbank.org/en/country/nigeria

  • Community Banks Aren’t Hurt By Debit Card Fees

    Community Banks Aren’t Hurt By Debit Card Fees

    A provision in the Dodd-Frank Act originally had community banks worried.  The new regulation would reduce the amount of money that larger banks could charge for debit card swipes by half.  Targeting banks with assets of more than $10 billion, this meant smaller, community banks would be exempt from the regulation.

    According to a recent article in Albuquerque Business First by Dennis Domrzalski, smaller banks, feared that the companies responsible for collecting the money from the swipes would not be able to establish the two-tier system necessary that would allow them to be able to identify the cards from smaller banks from those of larger banks.

    The law took effect in October 2011.  In 2012, the average interchange fee received by small banks was 43 cents per swipe, about the same as before the law took effect, the Fed said in a report on interchange fees.  “In 2012, exempt issuers (small banks) received $7.4 billion in total debit card interchange revenue, compared with approximately $5.3 billion in debit card interchange revenue in 2009,” the study said.

    For more information, visit:  http://www.bizjournals.com/albuquerque/blog/morning-edition/2013/05/debit-card-fees-arent-hurting.html

  • Debit Cards Are A Good Deal After All

    Debit Cards Are A Good Deal After All

    A few years ago, you couldn’t use “debit card” and “good deal” in the same sentence, but now with the high rate of competition, banks are easing off a lot of their fees.  In fact, with a few smart moves, you can use a prepaid debit card without any fees at all.

    “We’re seeing new entrants to the market with some pretty compelling offers,” said Greg McBride of Bankrate.com.  Even consumer advocates have started to take notice of the kinder, gentler nature of the debit card citing them as a real alternative for the more than 10 million unbanked U.S. adults.

    According to a report from bank consultancy Mercator Group, gift card purchases dropped slightly from 2011-2012, but debit card purchases were up by 12%.

    In the past, consumers were often forced to buy debit cards at grocery stores or other retail outlets without being able to see a full list of quirk fees which were sometimes only available online.  But newer card issuers have adopted simplified, single monthly fee structures that are winning over customers.  “We feel like these products are headed in the right direction,” said Jennifer Tescher, CEO of the Center for Financial Services Innovation.  “Debit cards are becoming a mainstream product.  I am quite excited about the possibilities.”

    New prepaid cards come with some great benefits once limited to checking account users such as:

    • Free Direct Deposit
    • Monthly Fees Waived With Direct Deposit
    • Free Online Bill Pay
    • Some Offer Paper Checks
    • Get Cash Back With Purchase and Skip the ATM Fees
    • Costs are strikingly less than that of a checking account.

    With all the things the debit card has going for it, there are, however, some drawbacks.  They enjoy none of the standard federal consumer protections that credit do.  There are no refunds for fraud and no dispute resolution requirements.

    Thanks to their growing popularity with government agencies for disbursing funds, a growing number of middle-class consumers are using debit cards.  A report issued last year by the Aite Group says 34% of users hold college degrees, and one-third earn more than $45,000 annually.

    For more information, visit:  http://redtape.nbcnews.com/_news/2013/05/15/18255097-surprise-prepaid-debit-cards-actually-a-good-deal-for-consumers?lite

  • Debit Cards, Credit Cards and Bank Accounts Could Be Required If You Want to Receive Health Coverage

    Debit Cards, Credit Cards and Bank Accounts Could Be Required If You Want to Receive Health Coverage

    According to information provided by the Federal Deposit Insurance Corporation (FDIC), more than 17 million adults in the United States are unbanked.  Additionally, 43 million are considered underbanked, still relying on payday loans check cashing services to handle regular banking needs.  This could be a huge obstacle for those shopping for health insurance under the Affordable Care Act.

    Millions of Americans are expected to be eligible for tax subsidies under the health care overhaul that they can use to purchase coverage on new marketplaces.  With few regulations about what types of payment health insurers must accept, the unbanked could run into trouble paying the monthly premiums.

    According to the Washington Post, the unbanked rate tends to be higher among minority groups.  The Department of Health and Human Services addressed this issue in a letter to health insurers on April 5, saying that insurance carriers must be “able to accept payment in ways that are non-discriminatory.”

    One possible deterrent to accepting credit cards could be the administrative fee that comes along with a credit card transaction, which could slightly increase premium costs.  “The reason this is such an issue is that insurers are increasingly saying that they will not accept debit or credit cards as an acceptable form of payment,” study author Brian Haile said.  “If insurers refuse to accept premium payments made by debit cards, you’re going to exclude many uninsured Americans.”

    For more on this story, visit: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/22/millions-of-americans-dont-have-bank-accounts-that-could-be-a-problem-for-obamacare/

    For more from this author visit:  Tameka Riley’s Author Page

Prepaid Debit Card Reviews, Complaints, Etc