Yvette Presberry

After a mediator failed to arrange a settlement of a potentially precedent-setting prepaid gift card case Nov. 8, the New Hampshire Attorney General's Office said it would continue to pursue its fight against Simon Property Group.

Prepaid card companies speak of the opportunities to provide services to tens of millions of U.S. consumers who do not have debit or credit cards. But the recent experience of one of those companies, Morgan Beaumont, suggests that it can be tough to make a profit serving a population that is largely lower-income-at least at first.

Regulation can stifle a new product, or it can help it flourish. A case in point is Regulation E of the Electronic Funds Transfer Act enacted in 1979, which many believe helped rev up the debit card market by limiting consumer liability for lost or stolen cards.