Digital Dollars/Prepaid Cards/Computer Money

[Terry Hammonds]

"Money" continues to evolve. When I look at all the things that have served as money over the years in America, such as beaver pelts, tobacco, shells, livestock, farm goods, metal, paper, checks, etc., I am less surprised that digital money now dominates our economy. Company "pay checks," government benefits and tax refunds on cards are quickly replacing other forms of money as governments, companies and consumers try to distance themselves from banks.  But, as usual, financial institutions are evolving as well, figuring out how to attach fees and penalties to the reloadable cards. Even unemployment benefits on cards are subject to fees every time they are used, seriously reducing the real amount of benefits going to the unemployed while increasing the value to "banks." States issuing the cards are often unaware of the fees, just happy to reduce the states cost for processing checks. The new consumer protection agency is looking into these issues.

"But the Pew focus group found that consumers are concerned about the number of fees associated with prepaid cards. They include charges to buy the card, reload money, withdraw money from an ATM and call customer service." A fee to call customer services? 

As financial institutions find new ways to siphon off money for their own wealth, the purchasing power of others is diminished and our "consumer" economy will continue mostly stagnant.

[Jean Erick]

     With the dis continuing of sending checks, the banks now have a captive audience.  It's leagalized theft.  The people have no remedy.

Pretty soon they'll start more tightening on the requirements for the "free" accounts.

 

James

[Jim Blair]

Hi,

This change is probably a wash for most people.  If you don't have a bank account, you probably are charged to charged to cash a check now.  It isn't practical for Social Security to be paid in cash, so what are the alternatives? 

I was unhappy to be charged a "convenience fee" when I bought some concert tickets on line.  "Convenient " for them as much as for me: I didn't have to stop at the box office, but they didn't have to have staff manning the box office, and I selected my own seats from their web page.

Years ago I was in favor of replacing dollar (and 5 and 10 dollar) bills with coins.  But today,  I say stop printing and minting all currency, and do all transactions with direct deposit and credit or debit cards.  This would work for everybody but drug cartels ;-)

.

[Jean Erick]

     "Big Brother" via economics instead of politics.