Credit and Debit Card Ratings

The Occupy Prepaid Card: The Occupy Money Cooperative is being launched

Nearly two years after the Occupy Wall Street movement grabbed the attention of the media, politicians and general public, the rag-tag collection of protesters is back in the news. This time, however, the loose coalition – whose ire was targeted at the financial and political institutions that cement advantages for a few while ignoring the plight of the many – is announcing its entry into the very banking industry it so loathes.

Indeed, according to a July 23 article in Forbes, the Occupy Money Cooperative is being launched, and its very first product will be a prepaid debit card. Not surprisingly, the ethos behind the Occupy Money Cooperative and its new prepaid debit card is both decidedly democratic, and a new way to highlight what its founders see as the predatory practices of the banking industry. “We launched [the Occupy Money Cooperative] because we felt the way the for-profit banking industry operates in the U.S., it intrinsically exposes the U.S. economy to risk and makes us vulnerable to the consequences but, above all, fails many millions of Americans who don’t have bank accounts and are denied banking services,” founder and director Carne Ross told Forbes contributor Laura Shin.

The article goes on to point out that the Occupy Money Cooperative will be run in a similar fashion as a credit union, which are owned and controlled by members, albeit the Occupy version will have membership open to anybody who applies. The new entity’s web site explains that it hopes to, among other things, impact the entire financial community by providing an example of how a financial services organization can function in a way that benefits society as a whole. It also commits itself to being low cost, transparent and available to anyone. The first test of that philosophy will come with the release of a prepaid debit card, which the article says will happen once it has raised sufficient money for staff and operating expenses. The so-called Occupy Card will be extremely low cost, charging users just $0.99 per month. But other important details about typical prepaid debit card fees, including for ATM withdrawals and other transactions, were not yet available. “Like any prepaid card, there will be a range of fees. We hope the Occupy Card will be among the best value on the market, and one thing we guarantee are that all costs and fees will be completely transparent and clear to the consumer,” Ross told Forbes.

Given the legacy prepaid cards have had of victimizing low-income consumers who have no other banking options available, this product alone could stand as one of the Occupy movements most tangible accomplishments.

Tag: Prepaid

  • The Occupy Prepaid Card: The Occupy Money Cooperative is being launched

    The Occupy Prepaid Card: The Occupy Money Cooperative is being launched

    Nearly two years after the Occupy Wall Street movement grabbed the attention of the media, politicians and general public, the rag-tag collection of protesters is back in the news. This time, however, the loose coalition – whose ire was targeted at the financial and political institutions that cement advantages for a few while ignoring the plight of the many – is announcing its entry into the very banking industry it so loathes.

    Indeed, according to a July 23 article in Forbes, the Occupy Money Cooperative is being launched, and its very first product will be a prepaid debit card. Not surprisingly, the ethos behind the Occupy Money Cooperative and its new prepaid debit card is both decidedly democratic, and a new way to highlight what its founders see as the predatory practices of the banking industry. “We launched [the Occupy Money Cooperative] because we felt the way the for-profit banking industry operates in the U.S., it intrinsically exposes the U.S. economy to risk and makes us vulnerable to the consequences but, above all, fails many millions of Americans who don’t have bank accounts and are denied banking services,” founder and director Carne Ross told Forbes contributor Laura Shin.

    The article goes on to point out that the Occupy Money Cooperative will be run in a similar fashion as a credit union, which are owned and controlled by members, albeit the Occupy version will have membership open to anybody who applies. The new entity’s web site explains that it hopes to, among other things, impact the entire financial community by providing an example of how a financial services organization can function in a way that benefits society as a whole. It also commits itself to being low cost, transparent and available to anyone. The first test of that philosophy will come with the release of a prepaid debit card, which the article says will happen once it has raised sufficient money for staff and operating expenses. The so-called Occupy Card will be extremely low cost, charging users just $0.99 per month. But other important details about typical prepaid debit card fees, including for ATM withdrawals and other transactions, were not yet available. “Like any prepaid card, there will be a range of fees. We hope the Occupy Card will be among the best value on the market, and one thing we guarantee are that all costs and fees will be completely transparent and clear to the consumer,” Ross told Forbes.

    Given the legacy prepaid cards have had of victimizing low-income consumers who have no other banking options available, this product alone could stand as one of the Occupy movements most tangible accomplishments.

  • Pros and Cons of Prepaid Debit Cards

    Pros and Cons of Prepaid Debit Cards

    Don’t believe the hype about prepaid cards. But don’t believe the doomsayers, either

    We live in a world of incessant hyperbole. The latest version of the iPhone? Best invention ever. The current members of Congress? The most corrupt and feckless in history. And let’s face it, advertising and promotion is based largely on inflated claims such as these, and that includes the efforts companies use to pump up interest in prepaid debit cards. To hear card issuers describe them, prepaid cards are the most convenient, reliable and safe financial products ever conceived. But that is, of course, hyperbole. The truth involves a great deal more nuance. There are, in fact, some real benefits, especially for people who don’t have or can’t get traditional credit cards. There are also significant red flags with prepaid cards, ones that any consumer should be aware of. So all hyperbole aside, let’s take a look at a few of the good, bad and ugly qualities of prepaid cards.

    The Upside

    • Easy, easy, easy. One of the main reasons people carry around credit and debit cards in their wallets is because it’s so darn easy to use them. Accepted virtually everywhere – at restaurants, shopping malls and even parking meters – plastic is simply more handy than cash. Prepaid debit cards provide that same convenience, including being able to get cash when you have to have it from ATMs all around the world.
    • Under your management. With features like online account management and email alerts when you’re close to exhausting your available funds, prepaid cards give you easy control over how you spend your money. They’re also simple to replenish via direct deposit or by using a credit or debit card.
    • Web ready. Try logging on to Amazon and buying a book or DVD with cash. Uh, it doesn’t work. Online retailing is exclusively the domain of those who have plastic. Thankfully for those who don’t have a credit card, prepaid cards can be your portal to online purchases.
    • Safety first. There’s no need to walk around with large wads of cash when you have a prepaid debit card. Importantly, and unlike cash, losing your card doesn’t mean the money is gone forever, especially if you report the loss immediately.
    • A snap to get. Unlike credit cards, there’s no credit check if you apply for a prepaid card. Just sign up, fund the card and go.

    The Downside

    Just like any other means of payment, prepaid debit cards possess a number of disadvantages. Here are a few.

    • Fees, fees, fees. Although they vary from card to card, fees are inevitable. Whether it’s a monthly account maintenance charge or getting dinged to withdraw money from an ATM or even to add cash to your card, there’s no way around at least some fees. And if you use your card a lot and its fees are onerous, that amount can pile up quick. Which is why being a savvy, conscientious comparison shopper is vital.
    • Not earning credit. One of the main reasons consumers gravitate towards prepaid cards is because they can’t get a credit card. But relying on a prepaid card will do nothing to help you build the sort of credit history you need to eventually get one. Since the money to fund a prepaid card is, by definition, given upfront, there are no repayments and hence nothing to report to the credit bureaus that track that behavior. If you want to build credit, look into a secured credit card.
    • Not yet ubiquitous. Even though prepaid cards are gaining in popularity, they are not yet universally accepted at all stores. It’s always best to check with a merchant before you make a shopping trip.

Credit and Debit Card Ratings