Fee Compression Grows As Prepaid Marketers Seek More Customers.(News)

Byline: Sean Sposito

William Smith relies on prepaid debit cards as he travels the country tattooing musicians in vans, trailers, hotel rooms and houses. The 32-year-old Ocala, Fla., tattooer (see photo) says he has no bank account, just a low-cost MoneyCard obtained from Wal-Mart Stores Inc.

"You know the few bills that I have come out of there. I pay my rent in cash, but other than that everything [that] can be done automatically is through that [card]," says Smith. "I don't have a bank account. I get paid in cash."

Prepaid card companies are pushing much harder to win the business of cardholders like Smith by driving down their fees.

This …