Report: Consumer opinion evenly split on prepaid cards

An online survey commissioned by coupon comparison website CouponCabin.com revealed that consumer opinion about prepaid cards is evenly split between love and hate. Of the 2,159 U.S. adults that took part in the survey conducted by Harris Interactive Inc. in May 2012, 44 percent revealed a negative opinion of the products while 43 percent were favorable to them.

CouponCabin.com said the consumers who liked the cards cited safer than cash as the biggest reason, compared to not helping build a credit rating as the biggest negative for respondents who expressed disapproval of the cards. Usage as a budgeting tool, eliminating overdraft fees and not accumulating credit card debt were also seen as big plusses of the cards; too many fees and lack of consumer protections were also big minuses.

Forty-two percent of respondents said they had purchased or received prepaid cards. Of those users, 69 percent used the cards to make everyday purchases while 36 percent made online purchases with the cards. Additionally, over one-quarter (27 percent) of respondents said they were more likely to use the cards now than before the financial crisis of 2008.

Furthermore, a majority of consumers are apparently unaware of the fees associated with the cards, with 58 percent of survey respondents claiming unfamiliarity with the fees.

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