Hot regarding the heels of US Express, JPMorgan Chase rolled away plans for the brand new type of prepaid debit cards this week. Through the company aspect, it is a handful of reasons, which ReutersвЂ™ David Henry points down:
вЂњA loophole into the 2010 Dodd-Frank monetary reform legislation enables banking institutions to charge merchants greater costs for processing payments fashioned with this kind of debit card вЂ¦
Chase, the bankвЂ™s retail arm, hopes the prepaid debit card can help it steer clear of the negative publicity that overdraft costs can garner.вЂќ
Which means the lender will start cold calling clients it considers вЂњleast profitableвЂќ вЂ“ people who donвЂ™t hold credit cards or be eligible for checking accounts вЂ“ to move their balances to prepaid cards.
Their primary feature would be the reason prepaid debit cards are thought such helpful tools for cash-strapped customers: They donвЂ™t usually sustain overdraft costs (which average $35 a pop music) and therefore are a sensible way to handle paying for a budget that is tight.
But that doesnвЂ™t mean theyвЂ™ll come fee-free. Chase* intends to charge $4.95 each month for the cards and $2 for making use of out-of-network ATMs.
Issued, ChaseвЂ™s usage charge is admittedly less than some prices youвЂ™ll find on other cards that are prepaid the marketplace. Read More