Of course any instrument issued by a bank could be taxed on redemption.
Pre paid cards are by definition prepaid. So Jose buys some at walmart and mails them to Momma. How would an additional fee be assessed ?
On-line wallets would be highly problematic. There’s games, communitities, gambling etc. All with a wallet that can be loaded and unloaded. Servers off shore, funds withdrawn in a foreign country. Good luck with that. Now I don’t know how motivated the garden variety Illegal would be to trust such a scheme but it’s there.
They already mail money orders by the thousands which can be just as problematic as mailing cash so I’d expect plenty to opt for using Fed Ex to send cash.
And you can bet the farm La Raza will partner up with all sorts of immigrants rights outfits to set up other processes.
Keep in mind, if we see the kind of attrition we’d expect to see, similar to SP1070’s mass exodus, by the time Bank Regulators get their policy’s together, remittances may be not all that an attractive source.
>>Pre paid cards are by definition prepaid....How would an additional fee be assessed ?
When Moma redeems it.
The 1s and 0s are all processed ELECTRONICALLY.
If the transaction takes place in Mexico - it gets a Wall fee.
At gas stations people play a surcharge for paying their bill with credit cards. Law could provide that pre paid cards cannot be used for sending (as) remittances unless the fee were paid in advance and paid to the feds.
Postal money orders have the name and address written on them and the PO could charge the fee and remit to the feds.
If the remittance fee were something like between 2% and 7% it would probably not cause a mass exodus. The estimated remittances are $26billion. Four percent would provide $1billion a year. With the the legal work needed to build the wall it will take a while. Legal work like eminent domain cases, negotiating for water rights for people along border rivers, payment for land rental, dealing with local, state, and national park issues, etc. will slow down the actual building time.