American Express prepaid debit cards to get FDIC insurance

Washington Post ^ | 3/26/2013 | Danielle Douglas

[markomalley]

American Express announced Tuesday that its prepaid debit cards will now be backed by the Federal Deposit Insurance Corp., the latest indication that a market once shunned by established financial institutions is gaining ground.

The use of reloadable prepaid cards has exploded in the wake of the credit crisis that left millions of Americans outside the traditional banking system. But unlike checking accounts, reloadable prepaid cards do not offer the same financial protections for consumers and operate with fewer regulatory constraints.

[Jyotishi]

A comment at the site of the original article:

Flying Tigers
9:37 AM GMT-1000

This SUCKS.. Too Big to FAIL Corporate Entitlements BUST and We pick up the Tab

[newzjunkey]

I don’t see the problem here. They’re not “prepaid credit cards” anyway.