Prepaid Cards

Cash App is having the kind of month most companies would rather forget — except this time, October 2026 brought two separate piles of money changing hands. The first is a 45 million dollar multistate settlement: 46 states alleged that Block, Cash App's parent company, misled users about the strength of its fraud protections — including claims implying the app worked like a bank — while running dispute investigations that states called woefully incomplete under federal Regulation E.

Prepaid debit cards are marketed as simple financial tools for people who want to avoid banks. The Federal Reserve found that one of the biggest issuers in the business was making things anything but simple, and it fined the company $44 million for it.