From: American Banker
The Federal Reserve’s recently finalized interchange rules have unexpectedly crimped the prepaid debit card market and will make it even tougher for underserved consumers to gain access to the multifaceted financial products they need to get ahead.
In attempting to keep large banks from abusing the interchange cap exemption for reloadable prepaid cards, the Fed may have inadvertently scuttled one of the most promising opportunities for banks to profitably serve low-balance account holders who are likely to question the value of traditional checking accounts once they are no longer free.