When Consumer Reports talk, people listen. Whether it’s cars, refrigerators, electronics or even health care, the evaluations that Consumer Reports and its team of researchers and testers come up with are often the first place shoppers go when they’re trying to make a smart choice among lots of options. With the release of its report,… Continue reading Consumer Reports Rates Prepaid Cards
Tag: prepaid credit card
Study Shows Prepaid Growth – Prepaid Cards Multiplying Rapidly
Most financial institutions have already embraced prepaid cards in one form or another. Indeed, fully 84% of the study’s
participants – which collectively represent almost half of all debit transactions in the U.S.– offer a prepaid card.
Separate and Unequal – Varying Consumer Protections
“There’s no federal law that covers prepaid debit cards. It’s really up to the program manager.” Which is another way of saying that it’s up to the company issuing the card what, if any, protections to provide its customers. Indeed, with prepaid debit cards, consumer protections for unauthorized use are voluntary and can be changed or rescinded by the issuer at any time, according to a Consumers Union report.
The Good, The Bad And The Ugly – Card Purchase Disputes
Credit cards offer a lot of protection, debit cards a little and prepaid cards none at all. Indeed, with credit card purchases, you have the full force of the Fair Credit Billing Act on your side. Under the Electronic Fund Transfer Act, which covers debit card transactions, you have limited merchant dispute rights, except for unauthorized transactions. And there are no federal consumer protections for purchases made with prepaid debit cards.