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Hip hop mogul cuts cost for prepaid card

January 31, 2012

One of the most prominent members of the music industry recently announced that he would be cutting the fees for users of his prepaid card following competition from other celebrities.

One of the most prominent members of the music industry recently announced that he would be cutting the fees for users of his prepaid card following competition from other celebrities.

The Associated Press reports that Russell Simmons will cut the costs on his prepaid Rush Card shortly after Suze Orman, well-known for hosting a financial advice show on CNBC, rolled out a similar merchant services card of her own.

Simmons, who is perhaps best known for co-founding the Def Jam rap label, says that he doesn’t view Orman’s entry into the market as direct competition.

“What Suze Orman and other celebrities are doing is educating customers about this alternative,” Simmons said in an interview with the news source. “I don’t think my job is to be cheapest. I want to be the iPhone of this business.”

While some may be tempted to sign up for cards fronted by celebrities, not all have turned out well. The prepaid MasterCard fronted by the Kardashian sisters was canceled after it charged users high fees for usage.

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