Prepaid debit cards have recently become a favored way for states and the federal government to pay tax refunds. The arguments in favor of the use of prepaid debit cards over paper checks in states like Connecticut, Georgia and Louisiana are similar. Not only do citizens who lack a bank account – and therefore cannot take advantage of direct deposit – receive their refund quicker than if it came through the mail in the form of a paper check, but the governments themselves like prepaid debit cards because it save them money.Those are a few of the issues John Friedman took up in a recent story for Bloomberg Law entitled, “Policy Perspectives On Tax Refunds: An Economic Analysis Of Government-Sponsored Debit Card Refunds.” Friedman, an assistant professor of public policy at the Harvard Kennedy School and a faculty research fellow at the National Bureau of Economic Research, does an in-depth cost-benefit analysis of the embrace of prepaid debit cards and arrives at some conclusions that go counter to many of the arguments policymakers have made.
Tag: what is a prepaid debit card
Risky New Bank Card Technology – Is Your Card At Risk
It sounds like a great idea. A host of new credit and debit cards issued by big financial players like Chase and MasterCard come armed with small computer chips and radio antennae that allow consumers to make payments by literally waving their plastic over a card reader. But according to a story in Consumer Reports Magazine,… Continue reading Risky New Bank Card Technology – Is Your Card At Risk
City Embraces Gift Cards – Iowa City turns to gift cards to boost downtown businesses
According to a story in The Daily Iowan, that’s exactly what businesses in the Downtown District of Iowa City did this past Aug. The idea was the brainchild of the Downtown District, which cited the success of other cities like Des Moines in offering a single gift card that can be utilized at numerous businesses in a small geographic area.
Prepaid Debit Cards And Obamacare
According to the Businessweek story by John Tozzi, the state exchanges that will begin opening in Oct. will be required to accept payment via not only prepaid debit cards but also checks, money orders and bank wire transfers. In a way, this shouldn’t be at all surprising. After all, the Affordable Care Act is aimed largely at helping low-income families to purchase health care. Even though these new entrants to the health care market will be aided with government subsidies to help afford their new plans, they will still need a way to pay for it.
Green Dot Sues Sallie Mae Over Prepaid Deal
The good feelings between Sallie Mae and Green Dot are long gone now. Indeed, according to a report in Courthouse News, Green Dot has sued its former partner for $90 million in New York County Supreme Court. According to the story, written by reporter Nick Divito, who quotes extensively from the Green Dot lawsuit, the two companies had been in negotiations since late 2011 to form a partnership that allowed students to receive financial aid refunds on reloadable prepaid debit cards issued by Green Dot. This option was intended to be a part of Sallie Mae’s Campus Solutions business.
Risky New Bank Card Technology – Is Your Card At Risk?
Thieves can steal your credit card information from only a few inches away using a card reader that sells for less than $100. By simply transferring your account number, expiration date and security data to a computer and transferring it to blank cards, a counterfeit can be made of your card. Thieves can then make successful transactions using your “card” while it’s still in your wallet.