Prepaid Debit Card Reviews, Complaints, Etc

Tag: occupy movement

  • The Occupy Card Moves Ahead

    The Occupy Card Moves Ahead

    The Occupy Money Cooperative needs to raise $900,000 to make its card a reality.

    by Chris Warren

    The Occupy Wall Street Movement’s first steps into the financial services industry have not been particularly smooth. The announcement this past summer that the Occupy Money Cooperative, an offshoot of the anti-status quo coalition that grabbed the world’s attention with its street protests and barbed criticism of banks in the fall of 2011, would attempt to issue a prepaid debit card was an immediate source of fascination.

    Yet when the proposed fees associated with the Occupy Card were unveiled in September, an avalanche of criticism quickly followed. Far from being hailed as a savior riding to the rescue of helpless citizens being preyed upon by the big banks, respected observers like Consumer Reports declared that the card’s fees were worse than many other products already on the market. “Our first look at those proposed fees shows that the Occupy Card needs some work if its sponsors truly want it to be superior to other prepaid cards,” declared the Consumer Reports review.

    Nevertheless, the supporters of the Occupy Money Cooperative appear just as determined as ever to not only launch its prepaid debit card but to revolutionize the banking system. According to an article in the Cornell Daily Sun, the student newspaper at Ithaca, New York’s Cornell University, university professor Robert Hockett is among those working to make the card a reality.

    According to the article by reporter, Helen Donnelly, the Occupy Card will be launched once Hockett and the other co-founders of the Occupy Money Cooperative can raise $900,000 in initial operating capital. The article does not say how close, or far, the group is from reaching that amount.

    Despite its bumpy rollout, Cornell’s Hockett insists that Occupy’s ambitions are still to go well beyond just a prepaid debit card. “The Occupy Money Cooperative is beginning with the debit card. This debit card is a specific counterpart to cards like these that exist in existing banking institutions already offered. Chase Liquid is probably the best-known example,” Hockett told the newspaper. “The ultimate plan is to offer all the other services that these existing banking institutions already do, but on a non-profit basis.”

     

  • A True Wall Street Occupation?

    A True Wall Street Occupation?

    How the Occupy Card Doesn’t Live up to its Promise  

    by Shane Tripcony

    The terms and conditions of credit, debit and prepaid cards are not what anyone would call scintillating reading. Layered with legalese and hard to decipher jargon, these documents have traditionally (and understandably) been ignored by consumers. Which is too bad because they contain the sort of vital information people need to make smart financial decisions.

    By contrast, the recently announced fee structure for the Occupy Card is a legitimately fascinating read. The Occupy Card is a prepaid debit card that an offshoot of the Occupy Wall Street Movement is hoping to soon introduce to the marketplace, the first of what the so-called Occupy Money Cooperative would like to be an array of financial products and services. And while the proposed fees are not the fully-fledged terms one would wade through with an already available prepaid card, there’s one section you probably won’t find with many other cards: how to avoid the fees. (To be fair, Account Now generously offers tips to save money on their fees page as well, so kudos to Account Now, as well.)

    For instance, the issuers of the Occupy Card dutifully note that it will cost users $1.95 to take money out of an ATM, the result of network and other third party charges (ie. not Occupy’s fault). But to dodge that fee, the Occupy Money Cooperative urges people to get cash back while shopping. It goes on and on like this, with the designers of the Occupy Card offering tips on how to get around fees whenever possible.

    Arguably, in a financial services industry that many believe seeks out revenue generating fees the way a shark hones in on blood, the mere existence of a card-provider tip sheet about avoiding them is incredible. Of course, it’s not a huge surprise, given the Occupy Movement’s loathing of the way it believes Wall Street mistreats its customers and harms society.

    Now, don’t expect other issuers of prepaid debit cards to suddenly follow Occupy’s lead and highlight ways to sidestep their fees. (It sure would be nice, though!) But the sad truth is that they won’t need to because the non-profit, stick-it-to-the-man Occupy Card is far less consumer-friendly than many of the prepaid cards offered by the big banks. That’s right, the greedy capitalists from Wall Street have many, many prepaid debit cards that would cost consumers far less than the offering from the former residents of Zuccotti Park.

    While the Occupy Card has a low monthly account fee of $0.99, the $1.95 charge to take money out of an ATM is painful for anyone – no matter whether it’s the fault of Occupy or not. Also costly are fees for getting basic account information. The Occupy Card charges $2 to speak with a customer service representative and $0.99 to get automated help. As with most consumer-friendly prepaid debit cards, there’s no charge to load the Occupy Card using direct deposit. But any other method to load the card will set people back as much as $5 per transaction. That’s not exactly the kind of help the 99% need.

    It’s also not going to help the Occupy Card gain much traction in the marketplace. Based on our calculations, the average annual fees for the Occupy Card would cost the average consumer $259.40 per year. Truth be told, that lands the Occupy Card squarely in the middle of the pack. There are alternatives, such as Bluebird by American Express, which cost the consumer nothing, based on our standard formula. There are quite a few other cards that average out with lower fees as well. Cards from banking behemoths like Chase and U.S. Bank and American Express offer free ATM withdrawals and cash loads and are, overall, a far better deal for consumers. Even with the fee differences, the Occupy Card does send a message, and many consumers may find the importance of sending that message to be worth those higher fees. Bottom line, here’s the question for everybody: Are you up for occupying the Occupy Card?

  • The Occupy Movement Takes On Prepaid Cards

    The Occupy Movement Takes On Prepaid Cards

    The name says it all. When Occupy Wall Street became a household name a couple of years ago, the protesters were able to focus a light on the financial services industry and – at least in its view – the many harms it inflicts on the vast majority of citizens and the nation as a whole.

    While the Occupy movement was successful in raising awareness about the activities of big banks and other financial players, there has been plenty of criticism that it was lacking in concrete accomplishments. In at least one very specific way, that looks to be about to change. In July, it was announced that the Occupy Money Cooperative was being launched and that its first product would be a prepaid debit card.

    Recently, BestPrepaidDebitCards.com spoke via email with Carne Ross, a founding board member of The Occupy Cooperative, about the Occupy Card , why it chose to issue a prepaid debit card and how the group aims to change the financial services industry.

    BestPrepaidDebitCards.com : Why is Occupy’s first financial product a prepaid debit card? Is it because they have traditionally been such a bad deal for consumers? Or does it also have to do with the fact that this is a product that has a lot of potential?

    Ross: We chose a prepaid card as our first product because it’s one area where the unbanked and underbanked are exploited by current providers charging excessive and often hidden fees. We have also realized that this is a dynamic market and we believe that we can offer a competitive product in the long run, because our costs will be low. Moreover, the more users for the card, the lower the fees, as we will be able to negotiate better rates as we scale.

    BestPrepaidDebitCards.com: A breakdown of fees is important, even if it’s estimates. Just how drastically will the Occupy prepaid card differ from other prepaid cards? Besides fees, what other ways will the Occupy prepaid card be different from its rivals?

    Ross: I appreciate the questions but unfortunately I simply cannot even foreshadow the card’s fees and features at this point. We think it will be among the best deals on the market. Our aim is to minimize costs and pass these onto the consumer. We also think that the card will offer some good innovative features. Above all, if you use the card you become a member of the co-op that will offer the card, i.e. you become a co-owner of the company. You will have a stake and a say in how the co-op is run.

    BestPrepaidDebitCards.com: Do you have an estimated launch date for the Occupy Card?

    Ross: We do not. We hope soon. We are about to launch a campaign to crowd-source funding for initial operating expenses for the co-op. If successful – which we expect – we shall launch the card immediately. It’s ready to go. Until we launch the card, I’m not able to say much more, I’m afraid. We want to be super-transparent as a company, but some details we are required (legally) to withhold until the launch.

    BestPrepaidDebitCards.com: What sort of impact do you expect the card will have on banking in general?

    Ross: As we build up the number of users of the card, we shall soon be able to introduce further services that will shake up the current behemoths in the banking sector. These products will serve the same constituency as the card, wherever possible they will bolster the credit unions, provide low-cost choices, bypass the entrenched systems that rip everyone off, and brick-by- brick build alternatives for ordinary folk’s needs. I also should have been clearer in saying that because our costs are very low, we should be able to pass on any savings or benefits to our customer-members.

Prepaid Debit Card Reviews, Complaints, Etc