Colleges around the country these days have rules against credit card companies marketing their products on campus. They've found out through long and painful experience that students, if they are allowed credit cards, just use it irresponsibly and then rack up crippling amounts of debt by the time they graduate. To counter this, the credit card companies have come out with something new – they call them prepaid debit cards.
When it comes to marketing to college students, the financial companies are all about prepaid debit cards these days. These are like debit cards, except that they are issued independent of any checking account. What's in it for the issuing companies, you ask? Well, they don't offer many consumer protections, and of course, they're very expensive than with all those fees and charges that they ask for. For instance, they demand fees whether or not you use your card. You pay fees to use the ATM for lots of other things, too.
When it comes to marketing to college students, the financial companies are all about prepaid debit cards these days. These are like debit cards, except that they are issued independent of any checking account. What's in it for the issuing companies, you ask? Well, they don't offer many consumer protections, and of course, they're very expensive than with all those fees and charges that they ask for. For instance, they demand fees whether or not you use your card. You pay fees to use the ATM for lots of other things, too.