{"id":811,"date":"2013-12-05T08:51:50","date_gmt":"2013-12-05T13:51:50","guid":{"rendered":"http:\/\/www.nationaltransaction.com\/credit-card-merchant\/?p=811"},"modified":"2013-12-05T08:51:50","modified_gmt":"2013-12-05T13:51:50","slug":"consumer-reports-takes-closer-look-at-prepaid-features-and-fees","status":"publish","type":"post","link":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/consumer-reports-takes-closer-look-at-prepaid-features-and-fees\/","title":{"rendered":"Consumer Reports Takes Closer Look at Prepaid Features and Fees"},"content":{"rendered":"
\"Prepaid<\/a>

Credit: Flickr<\/a><\/p><\/div>\n

Recently, Consumer Reports reviewed 26 different prepaid cards and evaluated them based on different factors. The cards Consumer Reports considered to be the best scored well in each of these four factors:<\/p>\n

    \n
  1. Clarity of Fees<\/b>\u00a0\u2014 How well the fees are disclosed.<\/li>\n
  2. Convenience<\/b>\u00a0\u2014 Availability of in-network ATMs, bill pay features and how widely the card network brand is accepted.<\/li>\n
  3. Safety<\/b>\u00a0\u2014 Whether funds are protected with FDIC deposit insurance.<\/li>\n
  4. Value<\/b>\u00a0\u2014 How much they cost to use.<\/li>\n<\/ol>\n

    This is the first time Consumer Reports has evaluated and ranked prepaid cards, revealing a shift in the market for prepaid. As prepaid cards continue to grow in popularity, consumers are going to become savvier about which prepaid cards they purchase. Consider taking a closer look at this Consumer Report to determine how your financial institution\u2019s (FI\u2019s) prepaid offering measures up.<\/p>\n

    Highest ranked cards are those like the ATIRA suite of prepaid cards TMG\u2019s clients issue. They have fewer fees and make it easier for consumers to avoid them, carry FDIC insurance for each cardholder, offer features comparable to traditional checking accounts and do a better job of disclosing fees.<\/p>\n

    Not surprisingly, the worst prepaid cards reviewed scored poorly in at least one, and sometimes several, of the above categories. All of the lowest ranked cards have high, unavoidable fees, including activation and monthly fees. Additionally, the lower scoring cards fail to make their fees clear and easy for consumers to access and understand.<\/p>\n

    Specifically, the report found some prepaid cards fail to provide clear explanations of how to use features such as electronic payments, text alerts and mobile remote deposit capture, and the fees that may be charged for them. Further, while all of the cards reviewed claim to offer some form of protection for consumers, the report found in these policies are often not clearly defined.<\/p>\n

    Consumer Reports also found it problematic that although issuers provide safeguards voluntarily, they can cancel them at any time. Additionally, according to the report, fee information is often hard to find and difficult to understand. The report states this problem is compounded by the lack of consistency \u00a0with fee names and descriptions\u201d from card to card, making it challenging for consumers to compare fees and costs. Consumer Reports also found that prepaid cards offered by some of the big banks are not necessarily less expensive than other prepaid cards. Also, these big bank offerings may be less attractive to consumers because they often don\u2019t provide the option of making both electronic payments and payment by paper check.<\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Recently, Consumer Reports reviewed 26 different prepaid cards and evaluated them based on different factors. The cards Consumer Reports considered<\/p>\n

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