Network Branded Prepaid Card Association to attend Financial Protection Bureau field hearing on prepaid cards

Prepaid cards and their role in helping people manage their personal finances

The Network Branded Prepaid Card Association (NBPCA), a non-profit, inter-industry trade association that deals with network branded prepaid debit cards, is participating at the Consumer Financial Protection Bureau’s field hearing on prepaid cards in Durham, N.C. on 23rd May 2012 (view press release). The NBPCA will provide information and research about prepaid cards and their role in helping people manage their personal finances. An increasing number of people in the U.S. are looking for financial solutions that enable them to safely access their money via alternative ways than traditional banks, alleges the NBPCA. Research shows that consumers are using prepaid cards over other financial services options principally to monitor spending and save money. A focus group conducted by the Pew Health Group’s Financial Security Portfolio also shows that consumers believe card providers “were up front about their fees and cost for the services.” The 2012 Financial Literacy Survey revealed that about 30.5 million people in the U.S. purchase using prepaid debit cards on a daily basis, 73% think that cards are safer than cash and 72% deploy prepaid cards because they prevent them for overspending.

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