Prepaid Debit Cards — Survey Says Two Thumbs Up
Many folks on ChexSystems or who have other issues that may prevent them from enjoying a “real” checking account use prepaid debit cards. We love prepaid debit cards here at StopChex. We are happy to hear that lots of other people who use these banking alternatives also love them.
When the NBPCA (Network Branded Prepaid Card Association) finished their customer survey on March 9th 2009 they had a clearer picture of how the underbanked consumer segment of their users felt about using prepaid debit cards. In this article we will summarize some of the findings in this survey and find out how this group feels about prepaid debit cards.
The survey showed that about half of underbanked prepaid debit card users have a bank account, and one third currently have a credit card. Another 46% of responders used to have a bank account, and 50% used to have a credit card. Most were generally satisfied with their previous banking experiences.
The surveyed group certainly found prepaid debit cards beneficial as 95% overall found them to be very useful. Twelve percent said that they used their reloadable card at least once per day, and another 60% used them at least once per week. Only a very small group 4% found them “not very” useful.
When it comes to recommending a reloadable prepaid debit card to family and friends three quarters of respondents would be either “certain” or “very likely” to recommend them. While just 6% say they would be “not likely” to recommend them. A solid majority (72%) also agree that the fees charged for using a reloadable card are fair and believe they understand the fees associated with their card. They also overwhelmingly agree that the price for reloading prepaid cards is fair at 84%, and only 11% feel the pricing is not fair. This is why many are willing to make a positive recommendation.
When asked, when did you first use a reloadable prepaid debit card; about one half of underbanked users say they have used a card for at least a year. One third has used one for 4 months to 1 year, and one quarter say “less than 3 months”. The two largest sources for the acquisition of the cards were big box department stores at 29%, and another 15 % got them online. When reloading of the card the majority 45% was done at either the grocery or convenience store. Just 13% have not reloaded their card.
This survey has many conclusions to share, but overall the underbanked user segment of their client base seems very satisfied with reloadable prepaid debit cards and may be counted on as contented customers for the foreseeable future.
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