Pew’s Prepaid Cards Research Project builds awareness about the general purpose reloadable (GPR) prepaid cards marketplace including how and why consumers use them. While millions of Americans use these products every year, little is known about their impact. Pew aims to provide greater insight into the prepaid marketplace as a whole and examine the consumer protections that govern their use.
Why Prepaid Cards Matter
Prepaid cards may well reshape the landscape of how consumers manage their money, particularly when used as an alternative to traditional checking accounts. However, compared to ordinary debit and credit cards, prepaid cards contain few consumer protections. While analysts estimate that consumers loaded $28.6 billion on these cards in 2009, the industry is expected to top $200 billion by 2013, an increase of over 600 percent.
How We Conduct Our Work
The project works to assess the GPR prepaid card marketplace and examine business practices and consumer protections with objective research, including consumer surveys. It educates consumers and policy makers about these products and the options for their governance.
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The LATEST from the Project
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- Infographic
- Prepaid Cards Research Project
Are You Using a Prepaid Card to Buy Holiday Gifts?
Do you know what sort of fees you will pay or what times of consumer protections apply to you?
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- Media Coverage
- Prepaid Cards Research Project
C-SPAN: Prepaid Cards
Susan Weinstock talks about the increased use of prepaid/debit payroll cards and the associated risks and benefits. more
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September 12, 2012
Wall Street Journal: Footnote to Financial Crisis: More People Shun the Bank
The Russell family of Kirkland, Wash., makes about $230,000 with Charles Russell, 43 years old, working as a systems analyst for Microsoft Corp. According to the U.S. Census Bureau, that puts them among the top 5% of American households. But their affluence might not be apparent based on the way Mr. Russell conducts his personal finances. He has no bank account, having dumped it due to irritation over fees and overdraft penalties. Instead, for more everyday transactions he uses a debit-card offered by NetSpend Holdings Inc.
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- Media Coverage
- Prepaid Cards Research Project
Which Cost Less: Checking Accounts Or Prepaid Debit Cards?
Unless you’re a whiz at managing your money, a checking account is going to cost you more than a prepaid debit card, a new report concludes. In a new study, the Pew Charitable Trusts looked at 52 prepaid debit cards
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- Media Coverage
- Prepaid Cards Research Project
New York Times: Weighing Prepaid Cards vs. Checking Accounts
Prepaid cards can be a better deal than checking accounts for some people, but the cards need more consumer safeguards, a new report from the Pew Charitable Trusts finds
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September 6, 2012
Prepaid vs. Checking
What kind of consumer are you? How would switching from a checking account to a prepaid card affect the fees you pay when you manage your money? Find out with our new interactive quiz. more
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September 6, 2012
Loaded With Uncertainty
General purpose reloadable prepaid cards are rapidly growing in popularity. This study reveals that the prepaid card is a risky, largely unregulated alternative to the traditional checking account, but may work for some consumers who frequently incur high bank overdraft fees.
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- Press Release
- Prepaid Cards Research Project
Pew Finds Reloadable Prepaid Cards Risky Option for Consumers Compared to Checking Accounts
According to a new Pew report, general purpose reloadable (GPR) prepaid cards—used to make purchases, withdraw money from ATMs, and pay bills—can be used as an alternative to traditional checking accounts, but come with added risks. more
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- Media Coverage
- Prepaid Cards Research Project
Reuters: Prepaid Debit Cards Should Be More Heavily Regulated – Study
Prepaid debit cards, which are popular with consumers who are too poor for checking accounts, are too lightly regulated and should face more restrictions, according to a study released by Pew Charitable Trusts released on Wednesday.
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- Media Coverage
- Prepaid Cards Research Project
NBCNews.com: Prepaid Debit Cards May Not Be So Bad After All
Prepaid debit cards—criticized by many consumer groups for high hidden fees -- may actually be a cheaper option for some Americans, according to report released Wednesday from the Pew Charitable Trusts. more
