UniRush LLC plans to lower the fees on its reloadable prepaid cards.
The plan was disclosed Jan. 24 on the Twitter account of UniRush founder and music mogul Russell Simmons.
"After reviewing [RushCard] projections, ... I'm cutting prices in [February] and again in March," Simmons said on his Twitter account, @UncleRush.
Simmons did not say what the new prices will be. UniRush CEO Rob Rosenblatt says more information would be made available Jan. 25 but would not provide further detail.
Simmons' RushCard already has had its price cut within the past year. As of January 2011, its cards cost $3.95 or $14.95 to activate; they used to cost $19.95. Its monthly fee remains unchanged at $10, or $1 per transaction up to a limit of $10, depending on the pricing plan the customer chooses.
The 2011 price cut followed a massive outcry against prepaid card fees, sparked primarily by the short-lived celebrity-endorsed Kardashian Kard, which charged up to a year's worth of fees up front (see story).
Established prepaid card companies find themselves again under pressure for their prices, this time because newer entrants undercut them. Finance guru Suze Orman's prepaid card, introduced this month, charges $3 a month (see story). A prepaid card introduced by American Express Co. in June has almost no fees (see story).
UniRush is also adding features to improve the value of its cards. In November, it began offering a $2 monthly rebate to users who maintain an average balance of at least $500 across all accounts.
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