Coin doesn’t look like small change. It is actually a single smartcard that can hold all of the users’ credit and debit card data.
In 2012, U.S. debit and prepaid card volume grew $129 billion, or 7.0 percent, compared to the previous year. Meanwhile, credit card volume that same year grew by 8.4 percent, or $172 billion.
The Consumer Financial Protection Bureau published a bulletin Thursday “reminding employers that they cannot require” their workers to be paid via payroll debit cards that could carry a string of fees linked to their use.
A federal judge ruled Wednesday that merchants were overcharged under a debit card “swipe fee” cap improperly set by the Federal Reserve.
Prepaid cards — used as alternatives to checking accounts or for loading your child’s allowance – are still growing in popularity because of a lingering distrust of big banks. But the annual cost of a prepaid card can be as high as $360, while the average card charges 10 different fees.
More American workers, many of whom earn low wages, have to pay fees to get paid. The notion makes no sense, but it is a growing trend as mostly hourly workers are increasingly getting a prepaid debit card instead of a paper paycheck or direct deposit.
Imagine if you got paid by your employer through a debit card that charges you a fee to withdraw money from an ATM or every time you check your balance. A single mother from northeastern Pennsylvania alleges just that in a lawsuit filed against a McDonald’s franchise.
The agency found that by opting out these account-holders reduced their overdraft and non-sufficient fund fees, on average, by more than $450 in the second half of 2010. However, consumers who opt in to overdraft protection are more likely to end up with involuntary account closures.
The swiftness and scope of the scheme and thefts that unfolded make it a precedent-setting event for authorities and cyber-security specialists — $40 million was taken in about 36,000 transactions over a 10-hour period.
Many mobile payment users may not realize that their protections against fraudulent or unauthorized transactions can vary greatly depending on the underlying funding source.