Reactions to Bluebird, the prepaid product from Walmart and American Expressannounced this week, have been largely muted with a key regulatorsaying applicable regulations were not yet in place and anotherconsumer card advocate praising the card.

The Consumer Financial Protection Bureau declined to comment onthe new program, citing agency policy not to comment on individualproducts, and said that it had not finalized its proposed rule onprepaid cards yet.

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Cardhub.com, a website that specializes in evaluating cardoffers from a consumer perspective, named Bluebird the “BestOverall Prepaid Card” citing Bluebird's low fee structure, abilityto provide cards to family members and ability to use a mobilephone for check deposits, thus avoiding check cashing fees.

“It's clear that the Bluebird card can be immediately considereda top-tier prepaid card offering,” said CardHub CEO OdysseasPapadimitriou. “The fact that its only major fee is a $2 charge forall but your first monthly ATM withdrawal – which is waived forthose enrolled in direct deposit – means that it will be among theleast expensive prepaid cards, depending on how exactly you useit.”

“The ability to load funds via check by taking a picture throughAmex's mobile application also makes it one of the few cardssuitable to be an alternative check cashing tool,” Papadimitriousaid.

Robert Manning, CEO of the Responsible Debt Relief Institute inRochester, N.Y., and a critic of previous Walmart efforts to expandits financial service offerings, described Bluebird as an expandedor beefed up version of the Green Dot prepaid card, which Walmartalready offers.

Not only does Bluebird offer consumers more ways they can usethe card, it also offers them a broader acceptance network as wellas one higher on the ladder of perceived value, Manning noted.

But he also pointed out that all such prepaid cards in the pasthave had consumer problems that had not been readily seen withoutlooking at the details.

“How long can you have money on the card without using it beforethey take it,” Manning asked. “What happens if there is fraud andyou lose the money on the card?”

Walmart and American Express said that the funds put on aBluebird card will never be taken and that the funds enjoy the samefraud protections as do funds on regular American Express cards andother American Express prepaid cards.

And while the CFPB had no comment on the Bluebird card, DirectorRichard Cordray, speaking at a hearing on prepaid cards in Durham,N.C., on May 23, 2012, made it clear that the agency was interestedin the topic.

“Over the course of this rulemaking, we are going to focus ontwo key issues: safety and transparency,” Cordray said then. “Webelieve that innovation can bring great benefits to consumers andcan provide those outside the traditional banking system with moreaccess to financial products that meet their needs.

“But we have a duty to make sure these products are safe forconsumers and that prepaid card issuers do not make money byrelying on tricks or traps that are unsustainable for cardholders.Success in the marketplace is hollow if it comes at the expense ofconsumers.”