Prepaid cards, or general purpose reloadable cards, as they are called in industry parlance, are popular among 30 to 49-year-olds, especially renters and those earning less than $50,000 per year according to the Pew Charitable Trust. The cards, generally available for sale at supermarkets and drugstores, are similar to gift cards except that they can be reloaded with money. For some, this is a lower-cost alternative to a checking account, but fees can add up. Depending on the card users are charged for putting money on the card, withdrawing money at an ATM, checking the account balance, paying bills, and in some cases, users are charged a monthly fee. Starting in October 2017 the Consumer Financial Protection Bureau will implement new rules that will provide requirements for disclosure of fees, limit users liability when a prepaid card is lost or stolen, and in some cases eliminate certain fees.

Today’s market size shows the total amount of money consumers placed on their cards in 2003 and 2012.

Geographic reference: United States
Year: 2003 and 2012
Market size: $1 billion and $65 billion respectively
Source: Tompor, Susan, “Users of Prepaid Cards Get Protection,” Lansing State Journal, October 16, 2016, page 24A.