So, why is this a problem?
There are no regulations as to what fees a bank can charge on prepaid cards. In South Carolina, Bank of America will charge the user (mostly lower income people) a whopping $10 for each teller transaction, and $2.50 for every withdrawal from any non-Bank of America ATM. Since a lot of poor rural families do not live near a BofA ATM, that is going to hurt them big time.
And then there is the problem of how to get the last of your money. ATM's generally pay out only in $20 bills. If a family has $18 left on their card, they cannot get it from an ATM - they must either use it at a store (where a debit fee gets paid to the bank) or they would have to go to the bank and forfeit $10 for the transaction fee.
Listen up, Big Brother Government - if you are going to issue a person's money by a prepaid card, you have an obligation to assure that they can use it without as much as a penny in penalty. Otherwise, government is in bed with the banks who stand to make millions, if not billions from this windfall.