J.P. Morgan Launches New Prepaid Services
Today, J.P. Morgan Chase is announcing significant changes to its prepaid card program, according to The Wall Street Journal. The new system, under an agreement with New York Attorney General Eric Schneiderman, will provide online bill pay services and person-to-person payment services to Liquid prepaid cardholders, options that were previously inaccessible without a bank account.
If a Liquid cardholder tries to make a payment somewhere that the card is not accepted, Chase will mail a physical check to the merchant or bill company free of charge. Under the old policy, a cardholder would have paid $5 for a money order or $8 for a cashier’s check to receive the same service.
In addition to the new services, Chase will also be changing the way it approves applicants for checking accounts. Applicants who frequently used their overdraft policies will not be penalized, as long as the overdrafts are over two years old. This will give more customers the opportunity to open a bank account with Chase.
With the increasing number of unbanked Americans, many traditional banks are now reaching out to customers. Many consumers are still trying to recover from the crash of the American economy several years ago, steering them away from checking accounts and onto prepaid debit cards.
“We have been planning to enhance Chase Liquid for some time, and appreciated the opportunity to work with the NY Attorney General’s office,” said a spokesperson from Chase. “We share their commitment to bringing the benefits of mainstream banking to more New York households, as well as to households nationwide.”