RushCard Prepaid Card Adding Security Features Following Glitch
RushCard is introducing a new set of security features for the relaunch of its prepaid debit cards. This will be the first change in nearly a year after a technical glitch last October that left thousands without access to their funds.
The new RushCard will have a revitalized mobile application that will allow users to temporarily suspend their accounts if their cards are lost or stolen. Customers will also have the option to use fingerprint authentication to quickly log into their mobile accounts. These security features are not common in the prepaid market, which typically targets low-income or unbanked Americans.
The Consumer Financial Protection Bureau ordered RushCard to compensate users for their troubles incurred during the glitch. In May, the company settled a $19 million lawsuit to reimburse cardholders, after facing months of backlash on social media from customers who were unable to pay their bills.
RushCard was originally founded by hip-hop mogul Russell Simmons. In July, the company named Ron Hynes the new chief executive in the hopes of cleaning up the mess from last fall. Hynes was formerly the head of global prepaid solutions for MasterCard.