Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, July 23, 2014

Fed Report to Congress on Gov’t Prepaid Cards

The Dodd-Frank Act requires the Federal Reserve Board to report annually to the Congress on the prevalence of use of general-use prepaid cards in federal, state, and local government-administered payment programs and on the interchange fees and cardholder fees charged with respect to the use of such prepaid cards.

Across reported programs that provided a prepaid card option, government offices disbursed almost $1.1 trillion in 2013, 14% of which was disbursed through prepaid cards—a small increase in comparison to 2012 and 2013 data.

Issuers collected more than $502 million in fee revenue during 2013 across reported programs, with 65% from interchange fees and 35% from cardholder fees. Although the prepaid cards provided under government-administered programs usually offer cardholders one or more free ATM cash withdrawals per month, ATM withdrawal fees constitute 58% of all card- holder fee revenue that issuers collected in 2013. Customer service and account servicing fees constitute the next largest source of cardholder fee revenue, at 15% and 14%, respectively.

Read the report.

No comments:

Post a Comment

Please read our comment policy before making a comment.