nFinanSe Inc., a reloadable prepaid card provider, is reducing its fees to cardholders for ATM withdrawals and also for electronic bill pay transactions.
The company believes that these reductions will encourage greater trial and usage of its Visa and Discover Reloadable Prepaid Cards and promote greater retention among cardholders.
The company stated that it is immediately reducing its fee for an ATM withdrawal to $0.99 from $1.50 regardless of where the ATM withdrawal is made. Additionally, the company is reducing the fee on an electronic bill payment transaction to $0.44 from $1.00 with no restrictions as to payee or number of transactions. nFinanSe noted that these price reductions apply to both its existing cardholders and future cardholders of nFinanSe Visa and Discover Reloadable Prepaid Cards.
“Fees for ATM withdrawals and electronic bill payments through the use of Reloadable Prepaid Cards have simply been too high and too confusing,” said Jerry Welch, chairman and CEO of nFinanSe. “Fees for ATM withdrawals range as high as $2.50 and electronic bill payments are typically $1.00 or more. Additionally, card providers have implemented bifurcated pricing schemes for ATM withdrawals depending on whether an ATM location is ‘in-network’ or ‘out-of-network’ and for electronic bill payments by restricting who can get paid or the number of payments allowed. Although we have always had one ‘everyday’ price for these features, we still felt that the fees could be pushed down farther and that we should bring greater visibility to them. As a result, we intend to list the fees on our retail packaging moving forward and highlight them in our promotional literature in order to invite comparisons with our competitors.”
With the above price reduction, the following lists the major fees that will appear on the Company’s packaging:
Retail Price $3.00
Monthly Fee $2.95
Employer Direct Deposit FREE
Bank Transfer to Card FREE
Reload Fee $2.95
PIN and Signature Transactions FREE
ATM Cash Withdrawal $0.99
“Cash Over”/”Cash Back” at Retail FREE
24/7 Customer Service with Live Agent FREE
24/7 Customer Service on IVR and Web FREE
Online Bill Payment $0.44
Automatic Recurring (ACH) Payments FREE
Welch concluded, “In line with our goal of being the price leader in the GPR card segment of the prepaid marketplace, we are ‘breaking the buck’ for ATM withdrawal fees by going to $0.99 everyday and anywhere and by providing unrestricted electronic bill payments for the cost of a postage stamp – $0.44. We believe that our cardholders will really appreciate this simplicity and great value and that this will help us drive trial and usage among consumers.”