Editors Note: Prepaid cards are big business. As consumer use of credit cards has dipped in the past few years, the use of debit and especially prepaid cards has risen. In fact, one in three American households used a prepaid card in 2009, according to the Federal Reserve Bank of Boston. They are definitely mainstream financial products these days and many banks have jumped into the prepaid card market.
How do they work? A consumer signs up, adds money to the account and then uses it just like they would a credit card. And of course, just like credit cards, there are fees. Some cards have more than others and that’s where controversy has arisen over the years.
Hip-hop mogul and entrepreneur Russell Simmons got into the business with the RushCard 10 years ago. He insists his card and other prepaid cards have gotten a bad rap. So we invited him to write a guest column for The Daily Ticker. Read on...
By Russell Simmons
Prepaid cards have come a long way since the ill-fated Kardashian
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