According to the Associated Press, Federal regulators recently announced new rules governing the prepaid debit card industry. It’s a big change more than two years in the making that’s expected to bring some basic account protections to its customers, who are often financially disadvantaged.
1. How much money was loaded on prepaid cards in 2012 and how does that compare with the amount in 2009?
2. According to the Pew Charitable Trusts, who are the primary users of prepaid cards?
3. What are the changes to prepaid cards?
4. What controversial feature was left as a concession to the prepaid card industry?
5. Explain this controversial feature in terms of the accounting journal entries that might take place.
Staff. (2016). Changes coming to prepaid card market. The Associated Press, Oct. 16 (Retrievable online at http://bigstory.ap.org/article/43266ab343d84e7b8e56e55125788c51/changes-coming-prepaid-card-market)