Processing snafu delays Google prepaid refunds

In October 2012, Google Inc. discontinued the Google Prepaid Card feature of Google Wallet and said it would refund to users the balances left over on mobile prepaid Google accounts. But in early December, Google acknowledged that "unexpected processing issues" had delayed users from receiving refunds and informed them they would receive their unused balances by Dec. 22, 2012.

Google did not specify the processing problem involved, but that the issue was resolved. However, users were reportedly upset that Google did not inform them of the status of their refunds after the prepaid card was discontinued.

Google said it discontinued the card because it moved Google Wallet to the cloud to allow users to store any credit or debit card in the mobile wallet. The prepaid card was a component of the initial Google Wallet strategy announced in May 2011 and rolled out that September, where the prepaid card and a credit card issued by Citibank N.A. were stored directly on several smart phone models that utilized Google's Android operating system.

In September 2012, Google advised its prepaid cardholders to spend the balances on the virtual cards before the October deadline to avoid paying a maintenance (inactivity) fee. As the card termination date approached, Google changed its maintenance fee policy for the card. A $2 fee imposed after 180 days had gone by without a transaction being conducted with the card was changed to the fee being assessed after only 30 days passed without a transaction taking place with the card.

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