Consumers would love to get a better handle on how much financial services cost. Schedules of fees can be maddeningly complicated, and are often difficult to find (or to read when printed in very small type).
I spent a couple of hours today looking for the tables of fees on a dozen of websites selling prepaid card services, and each site had its own way of listing their fees.
Senator Charles Schumer of New York was at the initiative of a credit card disclosure law enacted in 1988, when he was a congressman, where all fees are grouped in a “Schumer box“. This has improved transparency quite a lot.
The Center for Financial Services Innovations is now preparing a similar “box” for prepaid cards. The final format of the box has not been published yet, as this is still work in progress.
Below is a sneak preview showing how we are “thinking inside the CFSI’s box” and preparing to follow their recommendations. This fee box is for our mainstream UPside card product.
Expect a few tweaks here and there as the model gets refined and finalized.
Prototype of the Fee Box for the UPside Visa Prepaid Card:
|UPside Visa Prepaid Card|
|Summary of Fees|
|Fee Category||Fee Type||Amount||Typical Use|
|Total cost of set up||Card purchase||Free||1/lifetime|
|Optional 2nd Card purchase||Free||1/lifetime|
|Monthly feeif loading < $500/month||$4.95||1/month|
|if loading > $500/month||$0.99||1/month|
|if Premium status1||Free||1/month|
|Optional second card|
|if loading < $1000/month||$1.99||1/month|
|if loading > $1000/month||Free||1/month|
|Add money:||Direct deposit||Free||2/month|
|Cash using MoneyPak®||$4.95 charged by store||2/month|
|From another UPside card||Free||2/year (IOU’s)|
|From a debit or credit card||$2.80||1/year (for emergencies)|
|Get cash:||From ATM||$1.952||2/month|
|Store Cash Back (up to $60)||Free||2/month|
|Add minutes to cellphone||Free||6/year|
|if Premium status1||1st monthly check Free||1/month|
|When traveling abroad||2% on top of exchange rate||1/year|
|Information:||Call Customer Service||$2.00||3/year|
|if Premium status1||Free||3/year|
|Email / online / mobile||Free||8/month|
|ATM Balance Inquiry||$0.992||3/year|
|Incidents||Decline at POS||Free||1/month|
|Decline at ATM||$2.00||3/year|
|Card replacement||$9.95 ($15 if Fedex’ed)||if lost|
|Reimbursing funds remaining on card||Free if via online check||1/lifetime|
|$12 if done by live agent||1/lifetime|
|1Earn 15,000 UPgrade points to become Premium Member
Earn UPgrade points by:
|2Fees charged by ATM network may apply|
firstname.lastname@example.org or call 866-845-6273