Prepaid Debit Card Reviews, Complaints, Etc

Tag: prepaid card

  • Cybercriminals Hit Target

    Cybercriminals Hit Target

    The holidays just got a little more stressful for millions of Target customers. In a statement on Dec. 19, the large retailer acknowledged that as many as 40 million customers who used their debit or credit cards at Target’s U.S. stores between Nov. 27 and Dec. 15 might have had personal information stolen. Online shoppers at Target.com were not impacted.

    Target says that it discovered the problem on Dec. 15 and was able to take steps to resolve future problems. Target also said that the information stolen included customer names, credit or debit card numbers, card expiration dates and three-digit security codes.

    According to a report in The New York Times, criminals focused their attention on point-of-sale transactions taking place inside Target stores. “By breaching point-of-sale systems, they can steal the so-called track data on credit and debit cards, which can be sold, in bulk, on the black market and used to create counterfeit cards,” says the story by Times reporters Nicole Perlroth and Elizabeth Harris.

    This high-profile theft comes at a very bad time for both Target and its customers. The first day criminals accessed customer credit and debit card information was Nov. 27, the day before Thanksgiving and just prior to Black Friday, the traditional start of the holiday shopping season.

    In its statement alerting customers about what happened, Target said it had partnered with a third-party forensics company to investigate the security breach and had alerted financial institutions and law enforcement officials. The New York Times report said that the Secret Service, which is responsible for investigating financial fraud, had launched an investigation.

    Target also urged customers who may have been impacted by the theft to take a number of steps to protect themselves. Specifically, the company urged people to keep a close eye on credit and debit accounts in order to spot any fraudulent transactions. Target also suggested customers monitor free credit reports available from Equifax, Experian and TransUnion, the nation’s three major credit bureaus. “If you discover any suspicious or unusual activity on your accounts or suspect fraud, be sure to report it immediately to your financial institutions,” says the statement from Target.

    In the case that a customer does find irregular charges, Target suggests contacting law enforcement or the Federal Trade Commission (FTC) to report the incident.

  • Google Launches Prepaid Card

    Google Launches Prepaid Card

    Google Inc. decided that the run-up to the holiday shopping season was the right time to announce its entrance into the prepaid debit card industry. On November 20 the search engine company declared – via blog post, of course, and with typical irreverence – the availability of its Google Wallet Card.

    “Your roommate finally paid you back for dinner through Google Wallet, and you want to use that money right away to pay for groceries this week. Now, you can use the new Google Wallet Card to spend the money instantly, either by purchasing in stores or by withdrawing cash at ATMs,” reads the blog. As the company’s announcement indicates, the new prepaid debit card offering from Google is both similar and somewhat different from other cards already on the market, which are now available from financial heavyweights like American Express and Chase as well as groups like the Occupy Wall Street Movement.

    Like so many other prepaid debit cards, the Google Wallet Card allows users to make purchases anywhere MasterCard is accepted. In addition, the card also makes it possible for cardholders to withdraw cash from ATMs. But there are also significant differences with the Google Wallet Card. As its name indicates, the Google prepaid debit card is linked to Google Wallet accounts. Google Wallet is a smartphone app linked to a consumer’s credit card or bank account that allows users to pay for items using their phone (if a retailer accepts Google Wallet, that is).

    The new Google Wallet Card, which is available for use only in the U.S., can be loaded with money either from a Google Wallet account or from bank and credit card accounts. There are other differences that make the Google prepaid debit card stand out. Importantly, there is a notable lack of fees. Google does not charge anything to people for obtaining the card initially nor does it levy fees annually or monthly. The Google card also provides instant notifications delivered straight to a cardholder’s phone whenever a purchase is made.

    Perhaps more controversially, information about purchases made using the Google Wallet Card will be tracked. According to an article in Reuters, the company will collect information on goods purchased with the card, the amount paid and the name and address of the seller. That information will then be included in profiles Google creates for advertisers interested in better targeting their pitches.

  • Prepaid Card Fraud Controllable

    Prepaid Card Fraud Controllable

    A recent report by Mercator Advisory Group examines the vulnerability of prepaid debit cards to criminals,

    by Chris Warren

    Prepaid debit cards make it into the news a lot these days. A lot of the time stories are focused on the maneuvering of large financial services companies like Chase and American Express and the various strategies they’re implementing to grab a larger chunk of this ever-growing market.

    But there has also been a steady stream of news recently about fraud involving prepaid debit cards. For instance, in mid-November six Yonkers, New York residents were arrested and charged with hacking into bank financial systems and swiping prepaid debit card information that enabled them to steal $45 million. There have also been frequent reports of criminals posing as utility workers, who threaten victims with shutting off their power unless they put money on a prepaid debit card.

    While the use of prepaid debit cards by criminals is gaining notoriety, the scope of the overall problem may not be so dire. Indeed, according to a recent report by Mercator Advisory Group, a consulting company, fraud involving prepaid debit cards is much smaller than what takes place with debit cards. The report, “Prepaid Card Fraud and Risk Controls in the United States,” notes that criminals target credit, debit and prepaid cards alike simply because they all have some level of weakness that can be exploited.

    In addition, Ben Jackson, the report’s co-author and a senior analyst at Mercator’s Prepaid Advisory Service, insists that further regulation of the industry isn’t necessary. “Prepaid fraud is a serious, but manageable problem, as long as the members of the prepaid value chain work together. There is nothing inherent to prepaid that makes it more or less risky than other financial products,” he says.

    Furthermore, Jackson outlines a variety of best practices that can be implemented to thwart criminals. For instance, the report says that card issuers and retailers should not be hesitant to say “no” to customers who raise red flags. In addition, the report encourages companies and banks to ask for additional documentation in situations when they feel it’s warranted and also to create a list of problematic names, addresses and phone numbers.

  • 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.”

     

  • How To Keep Holiday Spending Joyful

    How To Keep Holiday Spending Joyful

    Prepaid debit cards can help you stick to your budget.

    by Shane Tripcony

    It seems to happen earlier and earlier each year. Even before the little ones don their witch and ghost outfits to go out trolling for candy on Halloween night – let alone before anyone has planned out their Thanksgiving Day feast – many stores around the country already are decorated with evergreen wreathes and plastic Santas.

    To be sure, this makes absolute sense for retailers, many of whom rely on the holiday shopping season to account for as much as 50 percent of their annual revenue. In other words, it’s just good business to try and stretch the duration of the holiday shopping season as long as possible, even if it does occasionally also stretch credulity.

    But what might be good for storeowners is not necessarily in the best interest of all of us shoppers. Which is why so many personal finance pros urge us to make a detailed holiday shopping budget and stick to it. The first part is easy. Indeed, according to a recent survey by Capital One Bank, fully three-quarters of all Americans say they are likely to come up with some sort of holiday spending budget this year. But the same study also hints at the reality of what usually happens: Almost half of those who say they’ll budget for the new sweaters and Xbox games they plan to buy aren’t confident that they’ll actually stick to their best-laid plans.

    But it is possible to be both generous for the holidays while simultaneously ensuring that you don’t wake up with a financial hangover in the New Year. Step one is to do exactly what personal finance experts have been urging holiday season after holiday season and actually make a budget. Only you can determine what makes sense given your current financial situation and expenses. The consulting firm Accenture pegs the amount U.S. consumers are likely to spend this year on gifts at $646, an increase from $582 last year.

    Whatever you decide that number should be, step two is to take that amount and load it onto a low-fee prepaid debit card. Doing so – and being disciplined about using only that one card for your shopping and not adding more money to it once it is depleted – will ensure that you stick to your budget, even when your holiday spirit is threatening to overwhelm your best financial interests. Why not just use a gift card? That could make sense if you decide that you want to do all of your shopping at just one store. The beauty of dedicating a prepaid debit card to all of your holiday shopping is that it gives you the flexibility to make purchases wherever Visa and MasterCard are accepted, which is basically everywhere.

    Just as we here at BestPrepaidDebitCards.com urge you to select cards with low fees for day-to-day use, the same imperative applies for holiday cards. You still want to select a card – like Serve from American Express or Chase Liquid – that doesn’t hit you with many fees. There’s no need to be a Scrooge this holiday season. Just get a little budgeting help with a prepaid debit card to ensure the good cheer lasts into 2014.

  • Walgreen’s Launches A Prepaid Card

    Walgreen’s Launches A Prepaid Card

    The drugstore chain puts a prepaid debit card at the center of its financial services options

    by Shane Tripcony

    Walgreen’s is already the place millions of Americans head to in order to pick up everything from deodorant to Halloween candy to prescription drugs. Now the nationwide drugstore chain is adding financial services, including a prepaid debit card, to its already lengthy menu of offerings.

    On October 7, 2013 the Illinois-based retail giant announced that its new Balance Financial Prepaid MasterCard is available to customers in 250 Walgreen’s stores in Detroit, Milwaukee and Nashville. The company also said that the new prepaid debit card will be available nationwide by the end of the year.

    In making a foray into the prepaid debit card market, Walgreen’s reiterated a reality that has already prompted so many other large banks and financial institutions to unveil their own products. The many Americans lacking traditional bank accounts need an alternative to cash transactions and ultra-high fee check cashing and payday lending services. “Millions of Americans do not have – or want alternatives to – traditional checking accounts and debit cards,” says Jason Dubinsky, Walgreen’s vice president and treasurer. “For them, Balance Financial will represent safety, convenience, value and rewards. With Balance Financial as our platform, over time we plan to add more features and functionality that give our customers even more powerful financial tools to get, stay and live well.”

    In other words, the new Walgreen’s prepaid debit card is just the start. While Walgreen’s is already planning to offer Western Union Money Transfers and bill payment services in 2014, the details around the features of its prepaid debit card have already been set. Notably, the card will allow for no-fee ATM withdrawals for cardholders at most of the 8,000-plus Walgreen’s and Duane Reade stores nationwide. Balance Financial customers will also be able to check their account balance, move funds and view previous transactions on a website, mobile app or even at in-store kiosks. Like many other prepaid debit cards, Balance Financial can be reloaded for free via direct deposit. Also like similar products, the Walgreen’s prepaid card comes with a variety of fees, including a $2.95 account activation fee and a $2.95 monthly charge.

    Where the new Walgreen’s card is somewhat different from its competitors is in how it is synchronized with the store’s customer loyalty program. Use of the Balance Financial prepaid card earns points for every dollar a customer spends at Walgreen’s. Users of the card can also earn points for in-store reloads and direct deposits, points that can be used for future savings and other benefits. Dan Caplinger, the financial website Motley Fool’s Director of Investment Planning, recently wrote that this is the “real genius of the Walgreen’s offering” because it encourages customers to stick with the drugstore and make repeat visits. “If it’s successful, then you can expect not only Rite Aid and other direct competitors to follow suit but also a broader set of retailers hoping to cash in on the same trend,” he says.

Prepaid Debit Card Reviews, Complaints, Etc