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RushCard's technical problems are the product of an honest mistake. The company was switching to a new payment processor over a holiday weekend. But many people were put in very difficult circumstances when they could not access their paychecks. What does this say about management at Rush, about the image of the prepaid card, and what could it mean for changes in arbitration rules?
Yesterday's investor call held by Green Dot paints a fascinating picture of the fluctuations in the prepaid market. I would encourage anyone interested in the prepaid space to read it.
It covered several significant events. On the positive side, Green Dot signed up some new program manager partnerships. On the negative side, Green Dot says it will lose several exclusive retail partnerships. That,
If George Lopez sponsors a prepaid card but no one writes about it in the press, did it really happen?
When a celebrity endorses a prepaid card, it generates suspicion and skepticism. Prepaid card marketing firms continue to ignore the trend.
When Suze Orman announced that she was going to attach her name to a new prepaid card, the reaction by the press ignored the card's rock-bottom pricing and focused instead on questions surrounding the integrity of her relationship to a financial product. It mattered little that the Approved Card, if used with direct deposit, can be far less expensive than for a low-wealth consumer than most bank checking accounts. What mattered was that Suze was a trusted advisor to mainstream America.
According to a report published yesterday, Rush Card owner Russell Simmons says his prepaid debit card will soon have a cash advance feature.
The advance will give customers who have enrolled their card in direct deposit the ability to draw cash two days ahead of their next scheduled paycheck or payment.
A spokesperson from Rush says that the service is free of a fee. Rush is going to extend the payment solely on the faith that customers with an existing direct deposit enrollment will have another coming in 48 hours.
I continue to find evidence that there is a fundamental shift going on in how low-income consumers access the payments system. Earlier, I wrote at length about MetaBank and their prepaid debit card/line of credit platform developed in conjunction with NetSpend. I made some headway learning about the Emerald Advance and the Emerald Advance line of credit, both from Block.