Besides no credit check, the Chase Liquid Visa claims to offer other benefits like FDIC account protection and a $4.95 monthly fee with no other hidden charges. Even though many prepaid cards state “no hidden charges”, we at GetDebit always encourage consumers to read each cards terms and conditions. For example, Chase claims that no charges will be incurred by customers for making deposits or withdrawals from the company’s branches or ATMs, although someone using the card at a non-Chase ATM, might definitely incur a “non bank” ATM fee.

On May 1, the Federal Reserve published the results of an initial survey comparing the debit interchange fees charged by each payment association and card network charges. The research is summarized by the Federal Reserve, and an excel spreadsheet is provided with the summary details.

A copy of the research summary is shown below. The research data includes a summary of interchange fees from 2009 (for all issuers, including big banks and exempt banks), data for the period before implementation of Durbin (January 1- September 30, 2011, for both large and exempt banks), and data for the period right after implementation of Durbin (October 1 – December 31, 2011).

The shift in interchange has been dramatic post-Durbin. First, all of the large issuers immediately were required to drop interchange to the Durbin-imposed limits (essentially, 21 cents plus 0.05% of the value of the transaction, and a 1 cent fraud adjustment). In 2009, the average interchange fee was 43 cents. For large issuers, post-Durbin, the average dropped to 24 cents (with Discover branded cards significantly lower than that).

Exempt banks (smaller banks with assets of less than $10 Billion, and certain prepaid debit card issuers) saw a slight drop in the average interchange fee charged for signature debit transactions — going from the aggregate average in 2009 of 55 cents to an average of 51 cents in the period immediately after Durbin went into effect.

Exempt banks saw an increase in interchange for PIN debit transactions. In 2009, the aggregate average interchange for PIN debit transactions was 23 cents. In the period immediately after Durbin went into effect, small banks charged an average of 31 cents per transaction.

As the folks at CreditSlips write, The small banks are getting a leg up on the big guys in the two-tier system

Is this good news for prepaid card issuers? More fee revenue (or less of a hit) may mean more product innovation and options… or just greater profit for these issuers.

Debit Card Interchange – Average Interchange by Network Pre and Post Durbin

Jeremy Kuiper, Managing Director of Bancorp’s Payment Solutions division said:

“Swift Prepaid is a driving force in the loyalty, promotion and incentive card space and is at the forefront of prepaid innovation. We are pleased to announce our relationship with Swift and believe that the strength and commitment of The Bancorp will be a great complement to the Swift product offerings.”

Braven Imai, President and CEO of Swift also stated:

“Bancorp is an ideal issuing bank for Swift. By aligning with Bancorp, we have chosen a partner that will greatly enhance Swift’s prepaid programs.”

Mia Mends of PreCash stated:

“Like Americans with banking relationships, prepaid customers want optional services associated with their cards. PreCash developed these features: a savings account for people to plan for the future, roadside assistance to provide them with comfort in the case of car emergencies, and cash back on gas purchases to reward them for using the card.

Although not predominantly offered with all prepaid cards, value-added extras are becoming more and more noticeable in many prepaid programs these days. The recently announced American Express Prepaid Card includes some of the popular added extras also found on their successful credit card platform. The Mango MasterCard offers not only an optional savings account, but investing tools and renters insurance programs. The READYdebit Visa card family has free online bill payment, free mobile banking and a free credit “ScoreTracker” with their prepaid products.

Be aware that many of these value-added platforms can come with higher or additional fees. Always check out resources available to compare prepaid debit cards and select the best card for you.

Dan Henry, CEO of NetSpend was quoted:

“PayPal has chosen us to be the exclusive program and distribution manager and processor for their GPR card. We are marketing the PayPal prepaid card online and through our direct mail channels. Through this relationship, we are able to offer the prepaid card to PayPal’s 106 million active users.”

Don Kingsborough, VP and General Manger at PayPal added:

“The PayPal Prepaid MasterCard brings PayPal customers even more financial flexibility and choice for both online and brick-and-mortar purchases.”

Another prepaid favorite for entirely different reasons is the READYdebit prepaid card family. While not offering the lowest fee structure out there, READYdebit does offer cardholders a myriad of fantastic features and benefits you just can’t get everywhere. Included in some plans are FREE Online Bill Pay/Check Writing, FREE monthly fee with Direct Deposit ($1500), No Credit Check, No Overdraft Fees, Card-to-Card Money Transfer, FDIC Insurance, Visa Zero Liability Plan, Super Abundant Loading Sources and even a FREE Credit ScoreTracker for customers to track their credit scores. There are several plans to choose from, so if you don’t like the fees and features of one plan, you can always change to another.

The last prepaid card we would like to show you is the Western Union MoneyWise Prepaid MasterCard. This is another of example of outstanding value all wrapped up in a low-fee product. With a $0 Activation Fee, a $0 Monthly Fee, $0 Overdraft Fee, $0 Transaction Fees, $0 Customer Service Fees, FREE Online Bill Payment and No Credit Check required, this card is unbelievable. Also included is FDIC protection and great online account management features. There are a couple of fees that do need to be disclosed like an inactivity fee, an ATM fee and Western Union agent cash load fee. You can compare cards and fees here.

So, take your sweetheart out for Valentine’s Day using your own prepaid card, or get her or him one of their own. Always read the cardholder agreement no matter what financial instrument you choose to make sure it works right for you.

In a 2002 Census Bureau supplement, Hispanics of Mexican origin represent over 66% of the total Hispanic population, while the remaining 33% originate from Central America, South America, Puerto Rico, Cuba and others. As market share for these and other prepaid demographics continues to climb in the U.S., Mango appears poised to capture a good deal of it.

According to the Mango website, the Mango MasterCard is a card with a low fee structure, as well as some added features not found in many other prepaid cards. Some highlights include – no activation fee, no purchase fee, no credit check, smart phone apps, an attached savings account option, free customer service, an instant virtual card, free balance checks/text alerts via mobile device and no bank funds transfer fee. Another benefit worth mentioning is that the $5 monthly maintenance fee can also be credited to customers loading or direct depositing $500 or more each calendar month.

Whether you are considering the Mango MasterCard or any other prepaid card, compare, do your homework and read the terms of conditions before you commit. Make sure it is the right card for you.

Will Tumulty, AccountNow’s Chief Marketing Officer stated:

“Most visitors to www.READYdebit.com will be able to complete their tax return and e-file it in 30 minutes or less. It’s fast, secure and easy… and what could be more convenient than having your tax refund added to your READYdebit®Visa Prepaid Card?”

Ronald Leder of ezTaxReturn.com also commented on the AccountNow/READYdebit partnership:

“Serving customers better, faster and more affordably is always a winning strategy; collaborating with industry leading partners is how that happens.”

Remember to always read any finanical instrument’s terms and conditions and utilize available resources to compare prepaid cards before purchasing.

Given the lack of financial resources available to many U.S. citizens over 50, the partnership endeavors to assist older Americans by providing a tool for better money management, powerful purchasing power and increased retirement savings wrapped up in one safe, secure prepaid card. The AARP Foundation Prepaid MasterCard will be issued by The Bancorp Bank pursuant to license by MasterCard International Inc., and may be used everywhere MasterCard prepaid debit cards are accepted.

Val Kazia, CEO, O2 Secure Wireless was quoted:

“We expect this action to expand the Company, and will not only enable our existing/future clients to take advantage of a distinctly convenient payment method, but we anticipate that executing the opportunity to target such a large and growing part of the population, with financial options not commonly available, will position the Company to generate significantly increased levels of profitably. Considering this market expects to exceed $150 billion in 2012, we believe the results will be a very big advancement for the company.”

O2USA joins an ever expanding universe of prepaid cards to recently hit the market including Suze Orman’s, Approved Card. With an estimated 90 million Americans and over 2 billion people internationally considered to be under banked, it becomes obvious as to why the playing field is getting more and more crowded. With more players competing in the prepaid arena, customers should see more innovations and lower fees coming down the turnpike.