Prepaid or stored-value cards are taking on new roles, beyond the ever-popular gift card. Among the many new uses for prepaid cards are for travel, payroll, social service benefits, insurance payments, health benefits and "allowances" for teenagers. In a July 2006 study Mercator Advisory Group projected payroll cards alone will grow from 812,500 in 2004 to 14.2 million cards by 2008. Visa USA predicts the market for prepaid cards will reach the trillion-dollar mark, including travel cards, gift cards, cards for teens, and rebate and incentive cards.

Obviously, there's a profit in prepaid cards for someone, otherwise they wouldn't be promoted so heavily. The profit is in fees, and there are fees galore: for setup, transactions, inactivity, even reloading cards with more money. When you purchase a prepaid card, be sure to look at the fees associated with using prepaid cards.

In August 2006, the Office of the Comptroller of the Currency issued guidelines for disclosure of fees and expiration dates for gift cards issued by national banks. The gift cards themselves must carry the expiration date on the front of the card; fees for monthly maintenance, dormancy or usage; and a toll-free number or a Web site where consumers can get other information about their cards. The OCC also recommended a brochure or some written disclosure be included with the card that would include the name of the issuing bank, all fees associated with the card and how consumers can make complaints about the card, among other information.

Source: http://www.bankrate.com/brm/news/pf/YIRguide06-07/nov06_credit_cards_review_2006_a1.asp?caret=1+