Some consumers are considering dumping their bank and instead using prepaid debit cards as an alternative to a traditional checking account. The reasons for doing so vary, but convenience and a desire to control spending are among the top motivators.
However, the decision to embrace prepaid debit cards can be fraught with danger, according to Nikiforos T. Laopodis, associate professor of finance at Fairfield University's Dolan School of Business in Connecticut.
Laopodis says high fees and lack of government regulation are among the factors that make prepaid debit cards riskier than some people might think. He outlines his thoughts in the following interview.