The Prepaid Press - May 15, 2008 - (Page 7)

PREPAID BUSINESS May 15 · 2008 - 7 Prepaid Attracts Press Attention Growth Spurs Consumer Issues to balances less than ten dollars. He said he then asked the store to give him a rebate for the cash value. Out of the ten stores Ming tested three months ago, he reported that only two, both national retail chains, were aware of the law, and refunded the money as required. At the end of April, Ming did the test again. This time, it was much better. He said he got 9 of 10 to cash out the cards, although not without some persistence. A couple of the stores poopoo’ed the rebate, questioning its importance. claims in the bankruptcy court. South Bend TV Station Reports Debit Card Theft A television station in South Bend, Indiana, WSBT, reported that debit card fraud has increased 75% over the last year, according to police in La Porte County. Police say catching the thieves is difficult because once the credit card number is stolen, the thieves sell from page 1 lawsuits and legislation are focusing advertising and business practices by some calling card companies that authorities say are deceptive and unfair. The companies are accused of not providing the number of minutes the consumer things they are purchasing and charging fees that are poorly disclosed or not disclosed at all. Readers of TPP are very familiar with this issue. Special interest groups are also jumping into the fray. The Hispanic Institute released a report last year which found that, on average, prepaid calling cards only deliver 60% of the minutes they advertise. In New Jersey, a new law will take effect on August 1 that will require prepaid calling card service providers to register with the state before selling cards. The new law also requires that all surcharges, fees, and taxes be disclosed on the cards and the retail packaging. Part of the motivation for the new law was the story about soldiers in Iraq not receiving the advertised value of cards, as first reported in TPP. Gift Cards That Quit Giving Kurtis Ming, an investigative reporter for CBS 13 in San Francisco has done a report that says, although consumers are entitled to get back cash on gift cards balances of less than ten bucks, if they ask for it, many stores are not complying with the California law. Ming exposed this problem back in February, and told the stores about the problem. In April, Ming made a return visit to ten randomly chosen stores to see if things had changed. Ming said he bought the cards, and spent them down WSJ Advises Consumers to Use Gift Cards Quickly Emily Green, reporting in the Wall Street Journal, recently advised consumers to use gift cards as soon as possible. Her rationale is that in bad economic times, cards may be invalidated by bankruptcy of the retailer. She said that bankruptcy laws do not require companies to redeem gift certificates. According to her report, retailers have handled unredeemed gift cards differently, depending on their situation. The report said that Sharper Image stopped accepting its gift cards temporarily after it filed for bankruptcy protection in February. She said Sharper Image did start taking the cards again, but only if consumers made a purchase that at least doubled the card’s value. It also refused to rebate unused balances. In April, a challenge to Sharper Image’s policy was rejected by a court in California that refused to hear the state attorney general’s case. Green said that other retailers who have gone into bankruptcy have suggested consumers file Those in the prepaid industry would be well advised to stay on top of the coverage and make adjustments in their own operations as needed. the number to someone else. The report said the card number is then used in different locations or states, all before the cardholder is even aware. The report said that a La Porte county detective, who was victimized after his debit card information was sold, now recommends using a credit card instead. After all the time spent sorting it out and getting his credit back on track, Hynek told WSBT he’s now using his credit card more than his debit card because victims can recover the money. There are many other reports, almost daily, focusing on consumer issues with prepaid products. Stay tuned to TPP to get all the latest information.

Table of Contents Feed for the Digital Edition of The Prepaid Press - May 15, 2008

The Prepaid Press - May 15, 2008 Prepaid Attracts Press Attention First Data to Acquire InComm Contents The Retske Report: To Everything There Is A Season Regulatory Rundown: Rules, Bills and Probes Courtesy of the FCC 5 Minutes With Ray Horak, Telecom Author The Prepaid Press Expo Spotlight The Age of Prepaid Prepaid Wireless in Brief Prepaid Wireless Roundup American Wireless to Sell Virgin Mobile Openet Introduces Flexible Accounts Prepaid Reviews Launches Pay as You Go Podcast Motorola Reports Losses APC Wireless Buys Movida Virgin Mobile to Deliver Limbo Services The State of Prepaid Technology Start Your Engines! The Legal Line PhoenixSoft Adds Service Providers Blackstone to Distribute Viscom Calling Cards Spot Rates IVR Technologies Releases Talking SIP 3.4 Calling Cards in Brief Former IDT Employee Wins $10.5 Million Payments in Brief Hypercom SmartPayments Certified for Windows Pacific Resource Credit Union Selects TMG New Payment Software for QuickBooks POS Blood in the Water Prepaid 101: Give Me the Power 7-Eleven to Hold Innovation Event First Data Gives Ingenico I-Series Class A Support Coinstar Kicks Off Change Reuse Program Payment Application Data Security Standard Issued Forrester Predicts Online Sales to Climb Retail Focus in Brief Our Advertisers Contact Us

The Prepaid Press - May 15, 2008

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