'Kard’ Snark Leads to Prepaid Dialogue

It’s not every day the gossip site Gawker cites an American Banker story about prepaid debit. But it’s almost inevitable when the card in question has a photo of television’s Kardashian sisters on it. ("Kardashian 'Kard' Is Serious Business," Nov. 18) 
Many Gawker readers posted outraged comments about the idea that the card will appeal to teens. "This is the most expensive fee schedule I have ever seen," one commenter wrote. "This is straight up 'let's take advantage of some dumb young people.' " (The card’s monthly fee is comparable to those of other prepaid offerings, but it requires payment of six or 12 months' fees up front.) A few attentive readers noted that the Gawker/BusinessInsider headline erred in describing the product as a "credit" card.
A Slate story segued from mocking the Kardashians' product to criticizing prepaid cards in general, largely for their fees. But one commenter offered this perspective: "The reason these cards are so popular and the reason that their users will continue to pay the fees on them is because they provide a way for people who do not want to keep money in a bank account to buy things where a credit card is required. … When you owe multiple creditors, every bank account you have can be subject to garnishment. The only failsafe way around that is [to] not have a bank account."