In an effort to reach more consumers, particularly those that don’t typically work with traditional financial institutions, a new e-commerce Web site is launching a branded prepaid credit card.
The new card will contain the GoUrban.net logo and name and will offer up to $2,500 in funds, which have to be paid by the card holder just as with any prepaid credit card. Since the card is being created in cooperation with MasterCard, it will be accepted at any location that accepts MasterCard cards.
The company claims that one of the purposes of the card is to help “expand people’s access to financial tools.” According to the Federal Reserve, there are still millions of Americans who either don’t have access to banks or simply don’t use them. This is particularly true for African-Americans. While 19% of the general population does not have a credit card, a whopping 46% of African-Americans don’t have one either. Of course, this makes it difficult for these households to make hotel reservations, to make airplane ticket reservations, and to rent cars.
The new GoUrban card is only the second branded card to be offered that is connected to a company owned by minorities, with the other being the Rush Card from Russell Simmons. If you are hoping to get your hands on this card, you will need to pay a monthly maintenance fee of $4.95 as well as a number of additional fees for some transactions.
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