This Bank Talk article discusses the credit capability of the Insight Card from Check$mart:
“Ohio check casher Check$Smart is offering high-cost credit on its prepaid cards.
The Insight Card calls the product the ”convenience transfer” but it is simply a way to borrow money. The fee is based on the size of the withdrawal. Consumers pay $3.85 for every $25 increment. This is actually higher than the rate that MetaBank was charging its customers prior to the OTS directive against the product.”
This overlooks the additional issues that lead to the OTS action but, to be fair, credit on top of a prepaid product has historically been the third rail of prepaid – and those that have touched it have been shocked. The article also describes the details of the loan structure, details of the overdraft policy, and identifies the issuer to be Urban Trust Bank.
The article can be read here.