Simple which is still in beta is a prepaid account but they don't want anyone to know that so despite being prepaid they will argue to the point of sounding stupid that they are not prepaid.
Here from their own account terms is where THEY TELL YOU IT's PREPAID.
https://www.simple.com/policies/bancorp-account-agreement/
http://goo.gl/SuhJD
Despite this Simple uses a front end risk eliminator - Andera to cull out customers who may present some risk to them despite the fact that it can't overdraft.
Maybe since they allow $200 on a check before it clears they are eliminating that risk? No because they do not ALLOW everyone to use remote check deposit - just like a Bank.
Here on their own Twitter page customers complain they cannot rent a car even with a deposit because the BIN code on the card says it is what it is - PREPAID.
https://twitter.com/Simplify/status/299218306823491584
Wednesday, March 27, 2013
Tuesday, March 26, 2013
Amex Bluebird Adds Check Writing
This is exactly how the MoneyNetwork checks work also. Call authorize the check and they freeze that money till it clears.
“No Overdraft” Check Writing: Starting today, Bluebird Members will have the ability to order Bluebird checks that they can use to pay bills and make purchases without worrying about insufficient funds or incurring overdraft fees because a Member’s funds are set aside during the pre-authorization process.
To preauthorize a Bluebird check, a customer will follow just two easy steps:
Obtain a unique authorization code online or through the Bluebird mobile app. Note: once a Bluebird check is pre-authorized, the funds associated with that check are immediately deducted from the customer’s balance, and are held until the check is presented for payment.
Write the authorization code on the check and give to the payee. This ensures for the customer that sufficient funds are available to cover the Bluebird check being written. The payee can confirm that sufficient funds are available by calling American Express.
Bluebird Members have access to one free checkbook until August 2013. Thereafter, Bluebird Members enrolled in direct deposit can receive their first checkbook of 50 checks at no charge, otherwise direct deposit and non-direct deposit users can order a book of 50 checks for $26 (including shipping).
Add More and From Home: In response to customer demand, the total Bluebird Account balance limit has increased to $100,000 per calendar year to allow Members to add more of their paychecks and large value checks. Additionally, Bluebird Members will now be able to add personal and government checks to their Bluebird accounts by mailing the check to American Express. Once the check has been successfully processed, the funds will be added directly to the Member’s Bluebird Account. There are no fees associated with this new capability."
“No Overdraft” Check Writing: Starting today, Bluebird Members will have the ability to order Bluebird checks that they can use to pay bills and make purchases without worrying about insufficient funds or incurring overdraft fees because a Member’s funds are set aside during the pre-authorization process.
To preauthorize a Bluebird check, a customer will follow just two easy steps:
Obtain a unique authorization code online or through the Bluebird mobile app. Note: once a Bluebird check is pre-authorized, the funds associated with that check are immediately deducted from the customer’s balance, and are held until the check is presented for payment.
Write the authorization code on the check and give to the payee. This ensures for the customer that sufficient funds are available to cover the Bluebird check being written. The payee can confirm that sufficient funds are available by calling American Express.
Bluebird Members have access to one free checkbook until August 2013. Thereafter, Bluebird Members enrolled in direct deposit can receive their first checkbook of 50 checks at no charge, otherwise direct deposit and non-direct deposit users can order a book of 50 checks for $26 (including shipping).
Add More and From Home: In response to customer demand, the total Bluebird Account balance limit has increased to $100,000 per calendar year to allow Members to add more of their paychecks and large value checks. Additionally, Bluebird Members will now be able to add personal and government checks to their Bluebird accounts by mailing the check to American Express. Once the check has been successfully processed, the funds will be added directly to the Member’s Bluebird Account. There are no fees associated with this new capability."
Amex Bluebird Adds FDIC Insurance
This was bound to happen because they were missing out on a big market.
"American Express (NYSE: AXP) and Walmart (NYSE: WMT) today announced expanded security and funding capabilities to Bluebird, a debit and checking alternative that provides Americans with a better way to manage and control their everyday spending.
“Since launching Bluebird, we have been listening to our customers’ feedback and working hard to expand its features and services”
Bluebird Accountsi will now be eligible for FDIC insurance, providing an extra layer of security. As a result, permanent Bluebird Accounts will now have the ability to receive direct deposit of government payments, such as social security payments, military pay, and tax refunds. Customers can also balance their Bluebird checkbook in real-time with pre-authorized check writing, add checks to their Bluebird Account by mail and add funds up to $100,000 annually.
“When we launched Bluebird last October, we were focused on serving the tens of millions of Americans who are not well served by the traditional financial services industry. The unbanked, underbanked, and the unhappily banked are beset by onerous fees and numerous inconveniences,” said Dan Schulman, group president, Enterprise Growth at American Express. “Bluebird is designed to help make their everyday financial lives easier, more convenient and less expensive. Today’s announcement, which reflects feedback from consumers, advocacy groups and government officials, represents the next set of enhancements that further distinguish Bluebird from other financial services options.”
“Since launching Bluebird, we have been listening to our customers’ feedback and working hard to expand its features and services,” said Daniel Eckert, vice president of financial services for Walmart U.S. “Bluebird is helping customers streamline everyday money management without the frustration of navigating complicated dos and don’ts just to avoid fees. The enhancements we’re announcing today make Bluebird a great option for our active duty military personnel, government employees and other customers helping them take greater control of their everyday finances.”
Bluebird’s new capabilities, built on American Express’ Serve® platform, are in addition to existing premium features such as the ability to add checks via smartphones, family sub-accounts and no fee access to cash at 22,000 ATMs for Bluebird members who have enrolled in direct deposit. Bluebird also comes with additional benefits such as access to Purchase Protection which can provide coverage for accidental damage or theft to eligible purchases within 90 days of purchase, award winning 24/7 customer service and the ability to be used virtually anywhere American Express® Cards are accepted worldwide."
"American Express (NYSE: AXP) and Walmart (NYSE: WMT) today announced expanded security and funding capabilities to Bluebird, a debit and checking alternative that provides Americans with a better way to manage and control their everyday spending.
“Since launching Bluebird, we have been listening to our customers’ feedback and working hard to expand its features and services”
Bluebird Accountsi will now be eligible for FDIC insurance, providing an extra layer of security. As a result, permanent Bluebird Accounts will now have the ability to receive direct deposit of government payments, such as social security payments, military pay, and tax refunds. Customers can also balance their Bluebird checkbook in real-time with pre-authorized check writing, add checks to their Bluebird Account by mail and add funds up to $100,000 annually.
“When we launched Bluebird last October, we were focused on serving the tens of millions of Americans who are not well served by the traditional financial services industry. The unbanked, underbanked, and the unhappily banked are beset by onerous fees and numerous inconveniences,” said Dan Schulman, group president, Enterprise Growth at American Express. “Bluebird is designed to help make their everyday financial lives easier, more convenient and less expensive. Today’s announcement, which reflects feedback from consumers, advocacy groups and government officials, represents the next set of enhancements that further distinguish Bluebird from other financial services options.”
“Since launching Bluebird, we have been listening to our customers’ feedback and working hard to expand its features and services,” said Daniel Eckert, vice president of financial services for Walmart U.S. “Bluebird is helping customers streamline everyday money management without the frustration of navigating complicated dos and don’ts just to avoid fees. The enhancements we’re announcing today make Bluebird a great option for our active duty military personnel, government employees and other customers helping them take greater control of their everyday finances.”
Bluebird’s new capabilities, built on American Express’ Serve® platform, are in addition to existing premium features such as the ability to add checks via smartphones, family sub-accounts and no fee access to cash at 22,000 ATMs for Bluebird members who have enrolled in direct deposit. Bluebird also comes with additional benefits such as access to Purchase Protection which can provide coverage for accidental damage or theft to eligible purchases within 90 days of purchase, award winning 24/7 customer service and the ability to be used virtually anywhere American Express® Cards are accepted worldwide."
Tuesday, March 12, 2013
Pew Report - Prepaid is Cheaper
That’s the somewhat surprising finding of a recent Pew Charitable Trust’s recent study that created three different types of customers — savvy, average and hapless — and predicted how many fees they’d rack up over a typical month using each banking method.
Prepaid cards have become more popular in recent years, but the majority of people still use checking accounts. Deciding which is best for you is, in some ways, an exercise in risk tolerance.
Checking accounts can slam incautious users with fees, and some can place consumers in debt through allowing overdrafting. But since any checking account provider is subject to federal regulations, your money is largely safe, and that’s a security many are willing to pay for.
A prepaid account, conversely, can be characterized as a high risk-high reward solution. Average consumers have a good shot at seeing lower fees, but the industry is not subject to regulatory oversight. And while many prepaid programs don’t allow consumers to overdraw, they also do not need to disclose all their fees, which means you could be in just as much danger of racking up penalties as with a checking account.
So exactly how much money — if any — would you save with a prepaid card? PYMTNS.com breaks down the study’s findings.
Study Parameters
Pew studied 52 prepaid debit cards that make up 65% of the market, and 237 conventional checking accounts offered by the 12 largest U.S. banks. The study used a $1,500 direct deposit and 17 point-of-sale purchases per month for each type of customer.
“Savvy” Customer
If you’re familiar with your checking account’s fees and pay attention during the month, you’re better off using this traditional method. Savvy consumers averaged $3.99 a month in fees for a checking account, compared to $4.50 a month for a prepaid card. It’s essentially a wash, but given the added security that comes with a checking account, it looks like the decision should be an easy one for this subset of the population.
“Average” Customer
Average consumers see a huge hike in fees for both banking methods, but a prepaid card becomes cheaper. Those with a checking account saw $28 in fees a month, while prepaid rang in at just $22.15. That’d make it a tougher call for many.
“Hapless” Customer
If you have a poor grasp of how your checking account works and you throw caution to the wind in your transactions, you’re going to be much lighter in the wallet. This group paid an astounding $94 a month in checking fees, compared to just $28.70 in prepaid. We’d urge you to pay more attention, but if banking really isn’t your forte, perhaps a switch to prepaid is in order.
Prepaid cards have become more popular in recent years, but the majority of people still use checking accounts. Deciding which is best for you is, in some ways, an exercise in risk tolerance.
Checking accounts can slam incautious users with fees, and some can place consumers in debt through allowing overdrafting. But since any checking account provider is subject to federal regulations, your money is largely safe, and that’s a security many are willing to pay for.
A prepaid account, conversely, can be characterized as a high risk-high reward solution. Average consumers have a good shot at seeing lower fees, but the industry is not subject to regulatory oversight. And while many prepaid programs don’t allow consumers to overdraw, they also do not need to disclose all their fees, which means you could be in just as much danger of racking up penalties as with a checking account.
So exactly how much money — if any — would you save with a prepaid card? PYMTNS.com breaks down the study’s findings.
Study Parameters
Pew studied 52 prepaid debit cards that make up 65% of the market, and 237 conventional checking accounts offered by the 12 largest U.S. banks. The study used a $1,500 direct deposit and 17 point-of-sale purchases per month for each type of customer.
“Savvy” Customer
If you’re familiar with your checking account’s fees and pay attention during the month, you’re better off using this traditional method. Savvy consumers averaged $3.99 a month in fees for a checking account, compared to $4.50 a month for a prepaid card. It’s essentially a wash, but given the added security that comes with a checking account, it looks like the decision should be an easy one for this subset of the population.
“Average” Customer
Average consumers see a huge hike in fees for both banking methods, but a prepaid card becomes cheaper. Those with a checking account saw $28 in fees a month, while prepaid rang in at just $22.15. That’d make it a tougher call for many.
“Hapless” Customer
If you have a poor grasp of how your checking account works and you throw caution to the wind in your transactions, you’re going to be much lighter in the wallet. This group paid an astounding $94 a month in checking fees, compared to just $28.70 in prepaid. We’d urge you to pay more attention, but if banking really isn’t your forte, perhaps a switch to prepaid is in order.
Funding Your GoBank Account
Since there is no card to swipe yet at Walmart the options are initially limited to buying a $5 MoneyPak, Bank ACH which will take a few days or a debit card. It seems you can use a credit card also but they caution that you could be charged by the CC company for doing so.
The opening deposit has to be $50 or more. Once you have a card in hand cash deposits are free of charge at any WalMart register.
If you do fund your GoBank account initially with a MoneyPak they credit you the $4.95 fee right away - good deal.
The opening deposit has to be $50 or more. Once you have a card in hand cash deposits are free of charge at any WalMart register.
If you do fund your GoBank account initially with a MoneyPak they credit you the $4.95 fee right away - good deal.
Joining GoBank
I'm going through the join process right now so I thought I'd describe it to potential customers.
I had requested an invite within 48 hours of hearing about it. You have to go to gobank.com to do that.
I just received an invite through my email. It tells you to go to gobank.com and click on 'join'.
You put the email address into the field and click through - it takes you to a 3 step process.
1 - You tell them whether you want a customized debit card. I didn't choose that since it seems to be a nice looking card.
2 - They ask some questions to identify you as you such as your past addresses etc.
3 - They send codes to your email and phone to verify them. Right now I'm not getting the text message at all to verify.
I've been at this all night they refuse to send the verification text, Will update when I get past that.
Okay for whatever reason it finally worked. I had to ask them to send the code through a voice message even though my phone was receiving texts the whole time.
So I am in and there was nothing but identity verification.
This looks like a great account. When I was having issues joining I was able to get ahold of their Facebook people and Twitter people also I send a help email which they replied to almost immediately and I received a phone call also.
Excellent customer service!!
I had requested an invite within 48 hours of hearing about it. You have to go to gobank.com to do that.
I just received an invite through my email. It tells you to go to gobank.com and click on 'join'.
You put the email address into the field and click through - it takes you to a 3 step process.
1 - You tell them whether you want a customized debit card. I didn't choose that since it seems to be a nice looking card.
2 - They ask some questions to identify you as you such as your past addresses etc.
3 - They send codes to your email and phone to verify them. Right now I'm not getting the text message at all to verify.
I've been at this all night they refuse to send the verification text, Will update when I get past that.
Okay for whatever reason it finally worked. I had to ask them to send the code through a voice message even though my phone was receiving texts the whole time.
So I am in and there was nothing but identity verification.
This looks like a great account. When I was having issues joining I was able to get ahold of their Facebook people and Twitter people also I send a help email which they replied to almost immediately and I received a phone call also.
Excellent customer service!!
Monday, March 11, 2013
Changes in Credit Scoring
For those with some credit issues this is some good news overall. Paying off a bad debt will not hurt scores.
http://ecreditdaily.com/2013/03/vantagescore-30-scoring-millions-credit-hardships/
The company behind the VantageScore, the most widely used credit scoring model behind FICO, said it has updated its system to include up to 30 million “previously unscorable consumers.”
VantageScore Solutions has also modified its scoring scale, now using the 300-850 range that aligns itself more with FICO.
The updated VantageScore 3.0 could also help consumers who default on loans as a result of a single or unique event, such as a natural disaster or sudden loss of income, by providing lenders with more precise timetables to better reflect an individual’s fuller credit profile.
In the case of a consumer’s account that goes into collections, for example, the consumer’s score will not be penalized if the debt was paid in full or settled.
The more detailed measurement of delinquency and default timeframes “provide for an improved representation of a consumer’s payment behaviors,” VantageScore said.
The biggest change in “VantageScore 3.0″ is its potential impact on consumers with little credit. It will now weigh rent, cellphone and utility payment records when formulating the score for a consumer with a limited credit history – if that information is present in a consumer’s credit file.
This should allow VantageScore to include as many as 30 million people who previously couldn’t get a credit score, and potentially help them qualify for more competitive credit rates.
The VantageScore was created in 2006 by the three national credit reporting companies: Equifax, Experian and TransUnion. The company said the scoring model was started to “employ the same characteristic information and the same model at each of the three credit reporting companies.”
“The model (VantageScore 3.0) was built with a lender’s implementation and risk management needs in mind, in conjunction with a deeper understanding for what information consumers need to become better managers of their own credit,” said Barrett Burns, president & CEO of VantageScore Solutions.
However, the bolstered VantageScore 3.0 can also keep non-credit consumers from getting the best rates if they have a history of missing monthly housing bills.
Moreover, none of it matters if a lender doesn’t use the new VantageScore.
FICO is still the most widely used scoring model, although the VantageScore is gaining ground. VantaScore is currently used by seven of the top 10 financial institutions, six of the top 10 credit card issuers and four of the leading auto lenders and mortgage lenders, according to the VantageScore website.
VantageScore 3.0 will also do a better job of distinguishing between different types of loan products.
It will, for example, separate first mortgage from other mortgage related transactions “facilitating greater intelligence with regard to a borrower’s mortgage-related debt,” the company said.
It will also have the ability to identify student loan accounts from other types of installment accounts.
http://ecreditdaily.com/2013/03/vantagescore-30-scoring-millions-credit-hardships/
The company behind the VantageScore, the most widely used credit scoring model behind FICO, said it has updated its system to include up to 30 million “previously unscorable consumers.”
VantageScore Solutions has also modified its scoring scale, now using the 300-850 range that aligns itself more with FICO.
The updated VantageScore 3.0 could also help consumers who default on loans as a result of a single or unique event, such as a natural disaster or sudden loss of income, by providing lenders with more precise timetables to better reflect an individual’s fuller credit profile.
In the case of a consumer’s account that goes into collections, for example, the consumer’s score will not be penalized if the debt was paid in full or settled.
The more detailed measurement of delinquency and default timeframes “provide for an improved representation of a consumer’s payment behaviors,” VantageScore said.
The biggest change in “VantageScore 3.0″ is its potential impact on consumers with little credit. It will now weigh rent, cellphone and utility payment records when formulating the score for a consumer with a limited credit history – if that information is present in a consumer’s credit file.
This should allow VantageScore to include as many as 30 million people who previously couldn’t get a credit score, and potentially help them qualify for more competitive credit rates.
The VantageScore was created in 2006 by the three national credit reporting companies: Equifax, Experian and TransUnion. The company said the scoring model was started to “employ the same characteristic information and the same model at each of the three credit reporting companies.”
“The model (VantageScore 3.0) was built with a lender’s implementation and risk management needs in mind, in conjunction with a deeper understanding for what information consumers need to become better managers of their own credit,” said Barrett Burns, president & CEO of VantageScore Solutions.
However, the bolstered VantageScore 3.0 can also keep non-credit consumers from getting the best rates if they have a history of missing monthly housing bills.
Moreover, none of it matters if a lender doesn’t use the new VantageScore.
FICO is still the most widely used scoring model, although the VantageScore is gaining ground. VantaScore is currently used by seven of the top 10 financial institutions, six of the top 10 credit card issuers and four of the leading auto lenders and mortgage lenders, according to the VantageScore website.
VantageScore 3.0 will also do a better job of distinguishing between different types of loan products.
It will, for example, separate first mortgage from other mortgage related transactions “facilitating greater intelligence with regard to a borrower’s mortgage-related debt,” the company said.
It will also have the ability to identify student loan accounts from other types of installment accounts.
Sunday, March 10, 2013
One West Prepaid Mastercard
$4.95 to obtain and $4.95 a month.
OneWests own ATMs are free others are $2.50 a pop.
Free cash reload at any OneWest branch.
https://www.owb.com/Banking/Prepaid/
If you live in the area they serve this is a good card.
OneWests own ATMs are free others are $2.50 a pop.
Free cash reload at any OneWest branch.
https://www.owb.com/Banking/Prepaid/
If you live in the area they serve this is a good card.
Saturday, March 2, 2013
Check Float
There is NO check float anymore. All Banks whether directly or indirectly use Check21 meaning any check you write posts within one hour to one day at most. Banks that are equipped directly to optically scan the check at the teller window clear that check in an hour if it's from another bank that is also Check21 equipped. But every Bank has to be Check21 equipped so smaller Banks or Banks that won't spend the money batch process though a Check21 middle man at the end of the day.
What does this mean?
It means when you write a check it'll bounce right away if the funds are not there.
How does it work when someone writes you a check? Then the Banks fall back on fraudulent laws that say they can wait X amount of days before giving you your money. Just like ACH takes 2 days - it's a huge load of BS when they do this.
What does this mean?
It means when you write a check it'll bounce right away if the funds are not there.
How does it work when someone writes you a check? Then the Banks fall back on fraudulent laws that say they can wait X amount of days before giving you your money. Just like ACH takes 2 days - it's a huge load of BS when they do this.
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