Are prepaid charge cards assisting or consumers that are hurting?

The middle for Responsible Lending is just a research that is non-profit policy organization specialized in protecting home-ownership and household wide range.

Let us start out with the following premise: with regards to technology and therefore key item expenses, basic function reloadable prepaid cards are indistinguishable from debit cards related to checkless checking reports.

Both prepaid and debit cards must keep a database of specific account records; both access the payments that are same via a bank person in a funds transfer system such as for instance Visa or MasterCard.

Both prepaid and debit cards have actually a requirement to “know your client” considering that the reports must go through a bank to gain access to the re re payments community.

Ergo, the largest differences when considering prepaid cards and debit cards are distinctions maybe not in technology however in legislation, or what exactly is frequently called “regulatory arbitrage” and only the providers that are unregulated. Continue reading →