Russell Simmons to slash fees on his prepaid card after Suze Orman rolls out …- Prepaid Deals

Russell Simmons to slash fees on his prepaid card after Suze Orman rolls out …

Russell Simmons to slash fees on his prepaid card after Suze Orman rolls out …
Article from Chicago Tribune:
NEW YORK (AP) — A little celebrity competition may be good for the prepaid card market.

Hip-hop mogul Russell Simmons said Thursday that he plans to trim several fees on his prepaid card, which works like a debit card but isn’t linked to a checking account. The announcement comes just weeks after financial guru Suze Orman introduced a prepaid card of her own.

Simmons said the fee cuts are simply the result of rapidly growing demand for his RushCard. He said the bigger profit margins have given him flexibility to cut fees and roll out new services.

But he noted that Orman’s entry in to the market should only fuel that growth — and push fees down further.

“What Suze Orman and other celebrities are doing is educating customers about this alternative,” Simmons said.

The RushCard, which has been criticized by consumer advocates for its fee structure, will still be more expensive than several popular prepaid cards on the market even after the fee cuts take effect in the next two months.

But Simmons said that pricing is not his only concern.

“I don’t think my job is to be cheapest,” he said. “I want to be the iPhone of this b…………………continues on Chicago Tribune
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Related News:

Green Dot’s 4th-qtr net income rises 77 pct
Article from CBS News:
(AP) MONROVIA, Calif. — Green Dot Corp., which provides prepaid debit cards for companies including Wal-Mart Stores Inc. and under its own brand, announced Thursday that its fourth-quarter net income jumped 77 percent as revenue increased and new card business grew.

Green Dot’s net income rose to $ 13.4 million, or 33 cents a share, from $ 7.9 million, or 18 cents a share, in 2010′s final quarter.

Revenue increased 30 percent to $ 119.7 million from $ 91.8 million a year earlier.

The company said the number of reloadable debit cards activated during the fourth quarter rose to 1.9 million from 1.5 million a year earlier.

Prepaid cards are a fast-growing segment of the payments industry. While the cards are aimed mainly at people who don’t have bank accounts or whose credit ratings are damaged, they also are becoming popular with consumers seeking to avoid surprise bank fees and keep from accumulating credit card balances.

Green Dot, based in Monrovia, Calif., offers prepaid MasterCard and Visa cards that can be reloaded and used for shopping online, paying bills, buying things in stores and withdrawing cash at ATMs.

Shares of Green Dot advanced 95 c…………………continues on CBS News
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