The middle for Responsible Lending is a research that is non-profit policy company focused on protecting home-ownership and family members wealth.
Let us start with the premise that is following with regards to technology and therefore fundamental item expenses, basic purpose reloadable prepaid cards are indistinguishable from debit cards connected with checkless checking reports.
Both prepaid and debit cards must keep a database of individual account records; both access the payments that are same by way of a bank person in a funds transfer system such as for instance Visa or MasterCard.
Both prepaid and debit cards have actually a necessity to “know your client” because the reports must move across a bank to get into the payments system.
Thus, the greatest differences when considering prepaid cards and debit cards are distinctions perhaps not in technology however in legislation, or what’s frequently referred to as “regulatory arbitrage” and only the unregulated providers. (more…)