Celebrities Tie Name and Face to Prepaid Credit Cards
Credit card companies are searching for interesting ways to entice consumers to buy into their product and use their cards and this is certainly one way of doing it – get celebrities to endorse or pioneer their own prepaid credit cards.
The prepaid credit card is not regulated by the government yet, which means that card companies have free(er) reign to get creative with options, offers, and deals regarding prepaid credit cards. One of the latest fads is the celebrity endorsed prepaid credit card.
In November 2011, the Kardashian sisters (Kim, Kourtney, and Kim) signed on to endorse and plaster their faces on the front of prepaid credit card from MasterCard. Ultimately, this particular venture did not pan out well for either MasterCard or the Kardashian sisters who fled the deal only three weeks after rate card was launched because they feared how it would impact their career. Apparently consumers were shocked and outraged by the fees that MasterCard assigned to this prepaid credit card and the Kardashian sisters thought that the association would harm their image. Unfortunately, this deal has resulted in a breach of contract lawsuit for the sisters.
Other companies have had more success with the celebrity endorsement venture. For instance, Bancorp Bank has paired with Russell Simmons to release his card, the “Rush Card” from Visa. Russell Simmons is a well known businessman and owner of Phat Farm and the website Global Grind.
Magic Johnson has also paired with OneWest Bank, FSB to release “The Magic Card.” The Magic Card requires $4.95 to set u and as a monthly fee and also charges a little extra (50 cents) for balance inquiries; however Magic Johnson boasts that his card offers other services that debit and credit cards don’t offer. For instance, Johnson says that along with peace of mind that the consumer is only spending what they can afford, they will also have access to features that will help them understand how credit works and how to get their credit in control, should they choose to venture back into traditional credit cards.
Business mogul, Suze Orman also has her own prepaid credit card called the Suze Orman Approved Card. Her card only charges $3.00 a month in fees.
In short, it seems that consumers trust other successful people and therefore, this trend of pairing a successful businessperson like Suze Orman, who has her own financial advising TV show, Magic Johnson who is part owner of the Dodgers, or Russell Simmons who owns a clothing empire, seems to work and keep the consumer increased confidence.