What is more cost-effective prepaid card or check cashing transactions?

At the 4th Annual Underbanked Financial Services Forum in Dallas the Center for Financial Services Innovation (CFSI) presented its latest research titled “One Size Does Not Fit All: A Comparison of Monthly Financial Services Spending”. This white paper is a result of study of how much prepaid cardholders spend each month to conduct essential financial transactions, compared to what they would spend if they used only a checking account or check cashing services.

Thus, the study showed that costs for the same transactions can range from $10 per month to almost $100 per month depending on choice of product or provider.

The research concluded that in fact there is no distinct financial strategy whether based on using a traditional checking account, a prepaid card or check cashing services that can be considered as the right and most efficient. It is up to consumers to decide on what method they will use in view of their circumstances. The study says that consumers of financial services must evaluate their own cash flow needs, behaviors and preferences in order to choose the combination of products and services that is the best fit for them in terms of both price and functionality.