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Prepaid Cards: Promise and Pitfalls for Consumers

Prepaid cards are credit card–sized pieces of plastic that provide access to a preloaded amount of money. Unlike traditional credit or debit cards that derive their value from a line of credit or an existing bank account, the value of a prepaid card comes from money given to the card’s issuer prior to its use.  The use of general purpose reloadable (GPR) prepaid cards has steadily increased in the past decade.  These cards are increasingly being used by all levels of government to distribute a variety of benefits to those who do not have bank accounts. … Back to Article

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