Finding a Door Into Banking, Walmart Prepares to Offer Checking Accounts

The New York Times ^ | September 23, 2014 | Hiroko Tabuchi and Jess SilverGreenberg

[2ndDivisionVet]

Here comes Wal-Bank.

After years of thwarted efforts to break into banking, Walmart is making its biggest foray yet into everyday financial services.

Walmart, the nation’s largest retailer, is teaming up with Green Dot, known for its prepaid payment cards, to supply checking accounts to almost anyone over 18 who passes an identification check.

Daniel Eckert, senior vice president at Walmart, said on Tuesday that the accounts would be available nationwide by the end of October. The accounts are intended to be low-cost alternatives to traditional bank checking accounts, with no fees for overdrafts or bounced checks and no minimum account balance.

In comparison, a basic checking account at Citibank charges $12 if a check is returned and $34 for overdrafts.

Green Dot accounts with direct deposits of less than $500 a month will cost $8.95 a month. Mr. Eckert said that most people on Social Security or fixed pensions would qualify....

[DemforBush]

"supply checking accounts to almost anyone over 18 who passes an identification check."

That's racist!

/sarc

[Autonomous User]

Wallyworld is shall Now be known as:

Shylock World

-by plugs Biden!

[MeshugeMikey]

Paging Al Sharpton

[E. Pluribus Unum]

Good for them.

Citibank and the other card companies skim 2%-5% of charges. They make more profit on most transactions than Walmart does.

If they can cut out the skim, they can lower prices, which is how they became number one in the first place.

[E. Pluribus Unum]

Plus, Citibank and the other card companies contribute heavily to Lefty and LGBTQXYZ organizations.

Starve the beast.

[Jack Hydrazine]

Will they have to lend money under Community Re-investment Act of 1977 requirements that’ll cause it to eventually go under?

[goldstategop]

The banking industry has prevented the rise of low cost banking alternatives... because that’s where the money is at.

Walmart is poised to change all that and competition is good for consumers in the form of better service, lower fees and convenience to bank right where they shop.

And that is a good fit for Walmart.

[ansel12]

So, free with direct deposit over $500.00.

Go WalMart.

[ElkGroveDan]

checking accounts to almost anyone over 18 who passes an identification check. ... with no fees for overdrafts or bounced checks and no minimum account balance.

Sounds legit. What could possibly go wrong?

[2ndDivisionVet]

They didn’t go from a single five and dime store to the world’s largest company by accident.

[Baynative]

"no fees for overdrafts or bounced checks and no minimum account balance."

What could possibly go wrong with this?

[Chickensoup]

Our credit union does it so much better.

[Billthedrill]

Too late. I have already successfully hidden my entire financial empire from the government by using my Starbuck's card for banking. When the sweet young thang behind the counter says, "Here's your latte, Mr. Drill, you have a balance of $350,476,892.23, would you like a receipt?" the rafters ring with my fiendish laughter.

There are problems, to be sure. It's tough to make car payments with those nasty little microwave croissant sandwiches. But it wasn't easy for Carnegie or Rockefeller, either.

[leapfrog0202]

Good for them.
Citibank and the other card companies skim 2%-5% of charges. They make more profit on most transactions than Walmart does.

If they can cut out the skim, they can lower prices, which is how they became number one in the first place.

---

Who’s going to pay for the bounced checks and/or overdrafts? Probably the tax payer? I say okay IF they followed normal banking rules like the account owner pays for bounced checks and overdrafts!

From the article:
Daniel Eckert, senior vice president at Walmart, said on Tuesday that the accounts would be available nationwide by the end of October. The accounts are intended to be low-cost alternatives to traditional bank checking accounts, with no fees for overdrafts or bounced checks and no minimum account balance.

[bgill]

no fees for overdrafts or bounced checks and no minimum account balance

What can possibly go wrong?

[jeannineinsd]

GoBank is a mobile banking app, offered by Green Dot. The customer does not get a check book. The customer’s paycheck or government benefit check is direct deposited into the account. The customer has a debit card to access the money. The account also has a bill pay feature.

Green Dot’s main business has been selling prepaid debit cards (with Visa or MasterCard logo) to people who don’t qualify for credit cards or checking accounts. Green Dot has systems in place to not allow withdrawals if money is not in the account.

So, in answer to your question, the taxpayers won’t be paying overdraft fees.

Here is GoBanks web site:
https://m.gobank.com/welcome/

Here are reviews of the GoBank app from the google play store:
https://play.google.com/store/apps/details?id=com.gobank&hl=en

[leapfrog0202]

Thanks for that info. It is not made clear in the article, which several FReepers interpreted the way I did.

[Organic Panic]

Imagine if WalMart got in to the medical care business. The system could use a little free market.

[E. Pluribus Unum]

Who’s going to pay for the bounced checks and/or overdrafts? Probably the tax payer?

That would be Walmart. The taxpayer has nothing to do with it.

Citibank makes so much money from idiots who run up huge balances on which they pay 24% APR that they can afford to write off a lot of delinquent accounts.

Walmart is providing a huge service to the poor who cannot get checking accounts and are at the mercy of the check-cashing outlets, who cash checks for a percentage of the amount.

This is a great thing for everybody except Citibank and Mastercard, who will object vehemently because they will now have less money to contribute to Democrat politicians.