Network Branded Prepaid Card Association Will Attend Consumer Financial Protection Bureau Field Hearing on Prepaid Cards in Durham, North Carolina

MONTVALE, N.J., May 18, 2012 /PRNewswire/ -- The Network Branded Prepaid Card Association (NBPCA) will attend the Consumer Financial Protection Bureau's field hearing on prepaid cards in Durham, N.C., May 23, 2012. As the nation's leading voice on prepaid debit cards, NBPCA will provide research and information to consumers, stakeholders and lawmakers about how prepaid cards work and the valuable role they play in helping individuals manage their personal finances. More and more Americans, particularly young adults of Generation Y, are seeking financial tools that fit their lifestyle, giving them choices to access their money in safe, innovative ways beyond brick and mortar banks.

Members of the NBPCA also will join the association in Durham and provide testimony to the Consumer Financial Protection Bureau (CFPB). The event is open to the public.

Prepaid cards are an extremely popular and rapidly growing segment of financial services. Studies show that the top reasons consumers choose prepaid cards over other financial services options are that the cards allow them to budget, control spending and save money. In November 2011 the Pew Health Group's Financial Security Portfolio conducted focus groups of consumers and found most participants preferred using prepaid cards over checking accounts because card providers "were up front about their fees and cost for the services." They said they preferred paying the $2 or $3 card fees to avoid hidden bank fees and "the potential of a $35 overdraft fee on their checking accounts."

The National Foundation for Consumer Credit Counseling (NFCC) 2012 Financial Literacy Survey included consumer responses related to prepaid debit cards for the first time in its history. The study revealed 13%, or about 30.5 million Americans, typically use prepaid debit cards to pay for everyday transactions such as groceries, gas, dining out, paying bills and shopping online.  It also found that 73% of card users feel the cards are safer than carrying cash while another 72% use prepaid cards because they keep them from overspending or spending money they don't have.

Businesses, universities and governments have also found that prepaid cards reduce their overall costs – especially when compared to making routine payments by check or cash. Providing payments in a prepaid card form is not only more secure than checks or cash, but is less expensive to manage, providing savings and benefits across the board. 

Issued by highly regulated banks, general purpose reloadable prepaid cards offer a variety of consumer protections including FDIC insurance on a pass-through basis and the card brand's zero liability protections against lost, stolen or fraudulent charges. Additionally, the majority of general purpose reloadable card issuers voluntarily provide Regulation E protections that apply to payroll cards. 

About the NBPCA
The Network Branded Prepaid Card Association (NBPCA) is a non-profit, inter-industry trade association that seeks to educate, advocate, protect and promote on behalf of network branded prepaid debit cards and represents the common interests of the many types of companies who come together to deliver the wide variety of prepaid products. For additional information, visit www.NBPCA.org.

SOURCE Network Branded Prepaid Card Association