By Shan Li, Los Angeles Times –
LOS ANGELES — Retail giant Wal-Mart Stores Inc. and American Express Co. are teaming up to offer low-income shoppers a prepaid card, touting it as a more affordable alternative to debit cards.
Called Bluebird, the card is aimed at “customers who are disillusioned or excluded by the rising cost of banking services,” the two companies said in a Monday statement. The card, which has been tested since March, will be available next week online and in Wal-Mart stores.
Bluebird, which functions somewhat like a checking account, can be used anywhere that accepts American Express cards. It’s one of many prepaid cards that have recently flooded the marketplace and try to woo customers increasingly fed up with debit card fees.
Money can be loaded onto the card at Wal-Mart cash registers, through direct deposit, via a bank account, or by using a mobile application to deposit a check remotely. With Bluebird, American Express will be able to reach more financially cash-strapped customers who may not have bank accounts.
Bluebird does not require a minimum balance and will have no monthly, annual or overdraft fees. Fees associated with the card include a $2 charge for using out-of-network ATMs to withdraw cash and a $2 fee to add money from a debit card.
Wal-Mart and American Express said Bluebird was partly inspired by shoppers who complained about the rising costs related to checking accounts and more traditional banking services.
“Our customers tell us that they are tired of navigating a complex maze of do’s and don’ts to avoid the ever-growing list of fees found on checking products,” Daniel Eckhert, vice president of financial services for Wal-Mart U.S., said in a statement.
Wal-Mart has said previously that in the U.S. about 85 percent of its transactions are paid for with cash.
The two companies said additional features, including the ability to write paper checks, will potentially be added by the first quarter of next year.
Speaking of bad checks, I sure wish the City of Mason City, the County, and other communities in North Iowa would go together and fund the arbitration/mediation center for bad checks again. It used to be in the courthouse and you could submit bad checks there. The center did a great job and I’m sure many businesses miss it and I’m sure law enforcement misses it as well. People had to submit bad checks there prior to going to law enforcement. I wonder if it was funded by a grant or from taxpayer money. At least people could submit checks under $200 and usually get their money back. Now it costs a fortune to go to small claims for a small amount and you may not get your money any way.
I thought you were for smaller government? That is not what tax dollars are for.
This will only work if all checks are processed electronically at the point of sale like a debit card where NSF checks can be denied. Most businesses aren’t set up to do that. I can only imagine the overdrafts this will create. And the MCPD won’t try to collect anything under $200.00.
A lot of these folks will look at this as a blank check to get what ever they want. A nightmare waiting to happen.
The sort of people that can’t handle a simple checking account sure as heck won’t be able to manage these cards, especially if they are able to write checks on it.