JPMorgan Chase Is Joining the Prepaid Debit Card Market
JPMorgan Chase has joined the rapidly growing prepaid debit card market calling the new card Liquid Chase, having implemented the new service in nearly 200 branches and announced plans for nationwide rollout this summer.
Prepaid cards have surged in popularity recently for consumers that have difficulty obtaining credit cards because of less than desirable credit profiles. Chase hopes to quickly establish itself in the prepaid market by offering Liquid Chase with competitive rates, about $59 annually, which is considerably lower than the average of $150 to $250 annually.
The prepaid card market is notorious for various fees including customer service, which Chase insists they won’t take advantage of, though they will charge a $2 fee for deposits made in non-Chase ATMs on top of a $4.95 monthly fee. Also, unlike traditional debit cards which offer overdraft protection, these cards will be declined if insufficient funds are available at the time of purchase.
With $57 billion uploaded on prepaid cards last year and estimates that 2012 will see more than $80 billion, it’s no wonder that everyone wants to get their fingers in the pie. CCPnet will keep its eye on the program and update if Chase decides it could be making much more on Liquid Chase and starts raising fees like they usually do.