Some taxpayers are getting their refunds for a prepaid credit card

Some taxpayers are getting their refunds for a prepaid credit card

The Baltimore Sun

Hip-hop mogul Russell Simmons is hawking a prepaid credit card. Reality TV celebrity Kim Kardashian shortly offered a card that is prepaid it absolutely was taken from the market. Then previously this thirty days, the Treasury Department announced so it will allow some taxpayers to obtain their refunds on prepaid cards this current year.

Demonstrably, not absolutely all prepaid cards are produced equal. Determining for you— means reading the fine print on all kinds of fees and services if you need a prepaid card — and which one would be right. Be ready; it isn’t constantly effortless.

Prepaid debit cards have been in existence for about 15 years, however the marketplace is seeing growth that is exponential. They’ve been convenient and simple to utilize it anywhere a debit card is accepted — but you pay a price for that— you load money onto the card and then can use.

The cards tend to be touted as a substitute plastic when it comes to 43 million customers who have actually little or no banking relationship, either since they do not trust banking institutions, don’t possess comfortable access to 1 or have a brief history of bounced checks that stops them from qualifying for a free account. Federal and state governments now utilize prepaid cards to pay for some advantages, although some employers have actually used them in place of paychecks.

But a lot of the development as time goes by is anticipated in the future from general-purpose cards that are reloadable by customers, including the Walmart MoneyCard, Green Dot and Simmons’ RushCard.

In 2007, customers packed $12 billion on these cards and are also projected to incorporate almost $202 billion on the synthetic in 2013, in accordance with Mercator Advisory Group, which tracks the cards. Continue reading “Some taxpayers are getting their refunds for a prepaid credit card”