Thursday, January 6, 2011
The Network Branded Prepaid Card Association is concerned the Prepaid Card Consumer Protection Act of 2010, that would place caps and bans on fees, would reduce consumer choice or increase pricing, and potentially lead to prepaid cards being withdrawn from the marketplace.
By prohibiting or eliminating certain fees, the legislation sponsored by Sen. Robert Menendez, D-N.J. fails to recognize that consumers choose different prepaid cards based on the services they feature, services that cost money to provide, said Kirsten Trusko, NBPCA President and Executive Director. According to the NBPCA, fees associated with network-branded reloadable prepaid cards are driven by consumer behavior, such as ATM usage, card reloading and losing cards. Fees cover card production, as well as fraud and theft protections, anti-money laundering requirements, and consumer services such as online tracking of expenditures, phone or text balance checks, and cash access via ATM or POS, the NBPCA added.
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