I'd never heard of the RushCard until yesterday, via a NYT piece. From what I can tell, a RushCard is simply a branded Visa debit card, presumably part of the Russell Simmons empire. (pic via RushCard)
A few thoughts on this NYT post.
1. The existence of this and similar financial products make it clear that no one is forced to use relatively expensive check cashing services.
2. I'm both amused and disappointed to see Simmons throw the term 'under-served' around. What does that really mean? I'm not sure, but by the connotation it's presumably bad. Bank and other financial institutions are literally everywhere.
3. Let's look at this quote from Simmons.
"Some people pay a lot to have a bank account. The average US household pays over $340 a year in bank insufficient fund fees. In fact, most of these are paid by members of underserved communities totaling over $1,300 per year per household. I have read that we are somehow trying to take advantage of people by charging high fees. It’s a very competitive space and even Walmart, the largest retailer in the world, has followed us with their own prepaid card."He's kind of all over the place here. First we learn that a group of people are under-served, then we learn that they are charged a great deal of money for services and that 'it’s a very competitive space'. Those two points would seem mutually-exclusive. Also, no one is forced to pay the fees he mentions, I think those are the result of bouncing checks.
In the end, regardless of Simmons's motivations and strange comments, I'm glad to see more evidence that markets work, and another option for those in the market for financial instruments.
Related links:
The Prepaid Visa Rushcard
The Prepaid Visa Rushcard: Features & Benefits
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