What the FDIC Has Said About Prepaid Cards and Their Potential in Reaching the Underbanked

"The ability of banks to reach out to low- and moderate-income consumers with products such as low-cost debit accounts, remittance services and individual development accounts may receive favorable consideration during Community Reinvestment Act examinations.

The evolving and increasing use of stored value cards is important to the banking industry. The FDIC and others in the banking industry recognize the importance of these cards to all consumers, including the underbanked. These cards provide banks with an opportunity to reach underserved markets."

Source: Federal Register: August 8, 2005 (Volume 70, Number 151)