date:Oct 10, 2012
hat make up Amexs typical customer base. As a payment processor, Amex would typically recoup swipe fees. As Ive written before, swipes on prepaid cards are exempt from the caps mandated in the Durbin Amendment. Card issuers usually also make money off the float, where they can get some return on investing account balances.
With its low fees and powerful backers, Bluebird will be the best test yet of whether prepaid cards can mount a serious challenge to traditional bank accounts.