T-Mobile Enters Prepaid Card Market
T-Mobile has entered the prepaid market with the rollout of a Visa-branded card that enables customers to make purchases, pay bills, and deposit checks through a smartphone camera without overdraft fees, minimum balance requirements, or in-network ATM withdrawal charges. T-Mobile’s Michael Goo emphasizes the consumer-friendliness of the Mobile Money service, noting that for the 68 million Americans who depend on alternate financial services or lack traditional accounts, “this product will help free them in terms of time savings and cost savings.” T-Mobile’s wireless customers also will have no monthly fees tied to the card. However, the Mobile Money Web page says T-Mobile will charge a fee for “non-typical use” such as using an out-of-network ATM, and a lack of clarity about the terms of such prepaid products has been a source of contention for lawmakers and regulators. For example, Sens. Robert Menendez (D-N.J.) and Mark R. Warner (D-Va.) recently introduced separate bills that require prepaid card issuers to fully disclose all fees tied to the product, while the Consumer Financial Protection Bureau is expected to write new disclosure rules by the end of this year.
From “T-Mobile Enters Prepaid Card Market”
Washington Post (01/23/14) Douglas, Danielle