Recently in Pre-paid Cards Category

Saving with Suze: Orman's Offering Co-opts Bank Relationships

By Scott Bennett on January 10, 2012 3:02 PM | No Comments | No TrackBacks

Prepaid cards have struggled against the perception that they are disposable and predatory. A card designed around the teachings of personal finance guru Suze Orman is aiming to break those stigmas -- and may displace long-term banking relationships in the process.

Whereas most prepaid cards are focused around spending, the Approved card, which Orman announced Monday, allows the user to move money into six other buckets for long-term savings. It also provides continuous access to TransUnion credit reports for a year and encourages "sticky" banking habits such as online bill payment.

"For some consumers, prepaid cards represent an alternative to a traditional bank account," said Mark Schwanhausser, a senior analyst for Javelin Strategy and Research, in an email.

The long-term savings accounts are meant to accommodate an emergency fund for eight months of expenses -- something Orman constantly urges her television audience to do.

The card might appeal to the so-called Gen Yers, people between the ages of 18 and 35, who are less committed to having a dedicated bank relationship because they don't like the fees and big account limits associated with such accounts, experts say.

About 43% of prepaid card users are Gen Yers, according to November 2010 survey by Aite Group. And nearly 40% of prepaid users who describe themselves as underbanked said they had used a prepaid card in the previous seven days, according to an October survey from Javelin.

"Younger people are not interested in traditional checking accounts, they don't write checks, and their need to write them has diminished, particularly with fees on checking accounts," says Patricia Sahm, managing director of Auriemma Consulting, of New York.

The card, which is a MasterCard Inc. product issued by Bancorp Bank of Wilmington, Del., also provides users with a dashboard for reviewing spending trends and setting up notifications and alerts.

The Approved card's pricing may also set it apart from other celebrity-endorsed cards. The infamous Kardashian Kard shut down after it was criticized for charging up to a year's worth of fees up-front, even though its monthly pricing was in line with mainstream prepaid cards.

In contrast to the Kardashian Kard, the Approved card is affiliated with a personality who represents financial responsibility, not excess, experts say. (Neither Suze Orman nor her representatives made themselves available to comment.)

"This is much better priced than trendier cards, such as the Rush Card," says Brian Riley, a research director in the bank cards practice at Towergroup, referring to the card offered by media mogul Russell Simmons' UniRush LLC. Representatives from UniRush did not respond to an interview request.

Though the Approved card's fees are low, it still has nearly two dozen of them. It is free to load for those who set up direct deposit, but it has an initial $3 purchase fee and a $3 monthly fee. It also charges for calling a live agent more than once a month, for receiving a paper statement and for issuing payments to billers by check. It also charges $30 for payment inquiries.

ATM withdrawals are free for consumers using machines on Cardtronics Inc.'s Allpoint network. For other ATMs, consumers pay $2 plus any fees from the ATM's owner.

Still, the pricing is impressive because it compares to Wal-Mart Stores Inc.'s card, which has much wider distribution and scale, says Bart Narter, senior vice president of Celent's banking group.

"I am impressed by [Orman's] ability to have such low pricing given her lack of volume currently," Narter says.

Wal-Mart Stores, Inc. : Walmart's "free" offer could come with a price

By Scott Bennett on January 10, 2012 2:57 PM | No Comments | No TrackBacks

Reuters) - As tax season begins, a decision by Wal-Mart Stores Inc to offer some free and discounted tax preparation in conjunction with its check-cashing services at more than 3,000 U.S. stores is less about giving back and more about bringing in, experts cautioned.

"No company does anything altruistically," Morningstar analyst Michael Keara said.

Now that the holiday shopping season is over, the retailer is looking for new revenue sources, he said. The company's latest offer allows consumers to have their tax refunds deposited for "free" onto a Walmart cash card. In addition, the company is working with major tax preparation firms to provide free "assisted" form 1040EZ filings.

It will take a while to see how lucrative the new service will be, given that some people will choose to pay down debt from their previous round of spending with their tax refunds, Keara said. Either way, it's going to put more money into Walmart stores and is another play to reach millions of Americans who don't use traditional banking services.

"It just locks in that they'll spend their rebate checks at Walmart," Keara said. "It's pretty smart."

Walmart already is a big player in the marketplace to cash checks for those who don't use traditional banking services and who often face steep check cashing fees. Walmart charges a flatrate price of $3 or $6 (depending on the size of the check) rather the 3 percent to 5 percent fees at check cashing services. For a $500 check, that means paying $3 at Walmart or $15 to $25 at a check cashing service.

The new program, which kicked off on Monday, come as Walmart tries to reach "unbanked" consumers, who typically don't have credit cards, either. About 85 percent of transactions at Walmart stores are paid with cash.

Some 2,800 Walmart U.S. stores have a Jackson Hewitt location, and another 250 or so stores feature H&R Block Inc.

Those providers will offer free 1040 EZ filings with tax preparation consultants in Walmart stores, said Daniel Eckert, head of Walmart financial services. Prices for other tax preparation services will be about 7 percent to 10 percent lower than at both companies' other locations, he added.

Jackson Hewitt and H&R Block already offer free basic tax return preparation through their offices and websites. It also is free to file the simplified 1040EZ on your own, or even through one of the online services, such as Intuit's TurboTax.

More than 60 million Americans do not use traditional financial services such as credit cards and checking accounts, Eckert said. Last year, these consumers paid billion of dollars in fees and interest to financial services providers. Within the next few months, they will be looking to cash more than $31 billion in tax refund checks and many could pay up to $90 for such check cashing services, he said.

"It's money that we want to make sure ends up in the right place, which is back in their pocketbooks," Eckert said.

Walmart, whose core customer has a household income of $30,000 to $60,000, has been trying to stand out to those with limited financial means. The world's largest retailer brought back holiday-season layaway on toys and electronics, letting shoppers pay in installments for a modest fee, a move that appears to have been a success.

Tax preparation is just one offering in Walmart's "MoneyCenter." The retailer also offers Walmart credit cards and money cards, money transfers, money orders along with $3 check cashing.

Ed Mierzwinski, consumer program director for U.S. PIRG, cautioned consumers to look at skeptically at Walmart's proposition.

"Consumers who are considering the Walmart offer should understand that Walmart is not your friend," he said.

One area of concern is the company's offer to allow consumers to have their tax refunds deposited for "free" onto a Walmart cash card, which Mierzwinski pointed out comes with a lot of fees. Some of the fees include $3 if $1,000 isn't added to a card in a given month, $2 to withdraw cash from an ATM, $1 to check your balance and $3 to replace a lost or stolen card.

"You put your refund on their card, so you're more likely to spend your refund at their store than save your refund," he said. "And you're more likely to be an impulse shopper." (Editing by Lauren Young and Beth Pinsker Gladstone)

By Mitch Lipka and Jessica Wohl

Why 2012 will be the Year of Prepaid Credit Cards

By Scott Bennett on January 10, 2012 2:51 PM | No Comments | No TrackBacks

Prepaid cards have something of a bad image -- hidden fees, no protection if they're stolen, not a method of building credit -- but mark my words, that image is going to improve.

If you've been pondering the pros and cons of getting into a prepaid credit card, and you're still on the fence, read on. Chances are, the benefits of prepaid credit cards are going to increase as we get deeper into 2012.

Why? This is just speculation for the moment, but the moment seems right for prepaid cards to better themselves. Here are three reasons I'm thinking prepaid credit cards are due for some improvements this year.

Recent rumblings in Congress: Last month, U.S. Senator Robert Menendez (D-NJ) introduced the Prepaid Card Consumer Protection Act, which, if it ends up being passed into law (something of a long shot in an election year, granted), the act would eliminate the worst hidden fees and, most importantly, make it crystal clear to consumers what the fees are.

"Unsuspecting consumers are finding out the hard way that prepaid cards often give you much less than the dollar amount you load onto them thanks to unnecessary fees," Menendez said in a December press conference. "We need to ensure that families who rely on prepaid cards are not surprised by hidden charges."

Even if nothing happens on the government front in 2012, banks that issue prepaid cards certainly have some incentive to make their prepaid products more consumer-friendly, to take some of the urgency in Congress to enact a law overseeing the cards.

Recent changes at the Consumer Financial Protection Bureau: This week, Richard Cordray was installed as the head of the CFPB, which is mandated to ensure that consumers are protected from deceptive practices, concerning virtually every financial product out there from credit cards to auto loans and mortgages and payday lending loans.

It's too early to tell what will happen this year, of course, but prepaid cards are a booming business. Last year, about $460 billion was put on prepaid credit cards, according to research done by the Mercator Advisory Group, and by 2016, that's predicted to expand to almost $685 billion. This hasn't gone noticed at the CFPB, and the more popular prepaid cards become, the more reasons the consumer watchdog group will have to step in.

The growth of prepaid cards mean more problems are coming to light: Finally, customers, I believe, are going to start demanding fewer fees and especially more protections. Consider the story that just came out of Plano, Texas, reported by WFAA-TV. Karie Anderegg purchased three prepaid credit cards with $100 on them as a Christmas gift for her son. She bought them at a Walmart in Plano.

So a few days later, her son attempted to use the cards to buy a new suit, and the cards were declined. The mother went online to the prepaid card's website and found that the balance remaining -- apparently for all three cards -- was $1.96. Evidently, some con artist managed to clone a prepaid credit card using the same information that was on the prepaid cards that Anderegg bought.

"I was shocked," she told WFAA-TV. "I mean, they're in packages. I thought they were safe. Obviously, they weren't."

And Walmart, at least so far -- we'll see if they change their tune as this story gets publicized -- hasn't offered up a refund for Anderegg's purchases. And legally, they don't have to, whereas if this happened with a credit card, the most someone can lose is $50. Even a debit card, the maximum liability is $50 -- if the theft of a debit card is reported within two days. In Ms. Anderegg's case, so far, she's out $300. No, wait, sorry, make that $298.04.

There are plenty of reasons why some people like prepaid cards. Some consumers are squeamish about being weighted down by credit card debt; others, with their credit score down in the dumps, believe that they can't get a credit card, although there are secured credit cards and credit cards for bad credit, and feel that the prepaid cards are a solid alternative. And, indeed, for some consumers, the cards probably are a reasonable alternative. But mark my words -- because banks realize that there are eventually going to be plenty of other Karie Andereggs out there -- sooner rather than later, the terms attached to prepaid cards will become more reasonable.

Can You Survive Without a Bank Account?

By Scott Bennett on January 9, 2012 9:24 AM | No Comments | No TrackBacks

At the start of last year, Smart Money asked, "Can You Really Go Cash-Only?" The article noted that the FDIC Survey of Unbanked and Underbanked Households pegged the number of households without bank accounts at 9 million, comprising 17 million people, in 2009.

In June, a Gallup poll showed a record high 36 percent of Americans declaring "very little" or "no" confidence in banks. And that was before Occupy became a household world or Bank Transfer Day took root late last year.

If you're thinking of joining the 17 million people who've chosen not to use banks, here are some things you should know:

* Alternative payment methods to checks include cash, money orders, wire transfer, online payments via Paypal (until the limit requiring a verified bank account is reached.) Not all of the options work everywhere, so it's likely a no-banker would have to use more than one method.

* Prepaid credit cards are issued by banks, so using them is tantamount to banking but does not technically require maintaining a bank account or banking relationship. The purist might reject using them, but they do represent one way to make online purchases or pay certain bills without a bank account.

* Paychecks can be problematic but don't have to be. USA Today explored this issue back in 2007, noting that check-cashing outlets may be cheaper than paying bank account fees for consumers who aren't diligent about avoiding overdrafts and other fees. Moneyland noted that big box options like Walmart can lower the cost of check cashing services considerably. As of November, the cost to cash a check at Walmart was $3; as a result, the retailer is becoming, as the New York Times described it, "a force among the unbanked." Under Dept. of Labor guidelines, an employer may not force an employee to receive wages by direct deposit.

* Sticking points: two areas typically mentioned as hard to navigate without a bank account are the car rental outlets and online buying. Many car rental companies allow a cash deposit as an alternative to a credit card deposit but it may take checking with multiple companies to find one offering satisfactory terms, Creditcard.com noted. For online buying, Moneyland suggested buying a prepaid card, but there's also the no banking option Boku, which bills your mobile phone provider.

* Savings and investments without banks require more effort. But traditional savings vehicles like real estate, shared ownership of small businesses, and even home safes are out there, so it is possible to save and invest without relying on banks. On the investing end, it may take some research but it isn't out of reach.

4 treds to watch for prepaid cards in 2012

By Scott Bennett on December 30, 2011 4:38 PM | No Comments | No TrackBacks

Prepaid credit cards are growing in popularity among consumers fed up with bank fees.

In 2011, consumers loaded about $460 billion onto prepaid cards, according to research from Mercator Advisory Group. And by 2016, the amount of money added to prepaid cards is expected to mushroom by almost 50 percent to nearly $685 billion.

Prepaid credit cards function very much like debit cards, but they're not linked to any bank checking account. So prepaid card users typically load money onto their cards through direct deposit or online transactions. Then those prepaid cards can be used online or in any stores that accept MasterCard or Visa.

If you are considering a prepaid card, here are four trends among prepaid cards to watch for in 2012.

Trend #1: An explosion of prepaid cards

For consumers, one big appeal of prepaid cards is that they can act as an alternative to banking institutions or as a supplement to a banking relationship. Thus, banks and financial entities issuing prepaid card issuers are going after the "unbanked" market, as well as disgruntled bank customers that complain about paying high checking account fees or getting nickel-and-dimed to death.

But in addition to financial entities, expect a slew of other entities - from retailers and airlines to utility companies and government agencies - to also issue prepaid cards of their own. Already, numerous non-bank institutions have created their own prepaid cards. Among them: Telemundo, the American television network that broadcasts in Spanish, has a prepaid card. So does AFTRA, the big union for actors and artists.

Trend #2: Prepaid cards go upscale, mainstream and global

In years past, prepaid cards had a reputation of being used exclusively by low-to moderate-income people, or those who aren't necessarily financially sophisticated. That's never fully been the case. But that perception nonetheless changed greatly in 2011, when American Express, which is known for having higher-end customers, stepped into the prepaid space.

Other signs also point to wider, mainstream acceptance of prepaid cards.

For one thing, American Express also launched a prepaid card with Target, the popular U.S. retailer. Also, in 2011, MasterCard Inc. teamed up with Western Union to begin jointly offering reloadable prepaid cards bearing the MasterCard logo in countries internationally. The goal is to make it easier to make payments and send money around the world. It was just a little more than a year ago, in 2010, when Western Union initially began offering prepaid cards in the U.S.

So in 2012, prepaid cards will likely continue to broaden their appeal - from a customer standpoint and geographically too.

Trend #3: Prepaid cards start to build credit rating

Consumers with "thin" credit or no credit at all typically use secured cards to try to establish their credit ratings. Likewise, those with severe credit problems in the past - like bankruptcy or foreclosure - often turn to secured credit cards to help rebuild credit. In 2012, however, more prepaid card issuers will likely try to tap into these two groups of consumers by adding credit-enhancement features to prepaid cards.

Already, some prepaid cards do tout their credit-boosting tools. For example, on its website, the RushCard offers information about its RushPath to Credit feature.

"When you enroll in RushPath to Credit and make regular payments using your RushCard, such as payments on your utility, cable, or mobile phone bills, your transaction data will be reported to participating consumer credit reporting agencies," the company says.

"Over time, these credit reporting agencies can use your transaction history to create a positive credit file for you," the company continues, adding: "RushPath to Credit will not help your current credit rating, record, or history with non-participating agencies."

The READYdebit Visa Prepaid Card also offers credit-building options, including a free monthly credit score tracker. More prepaid issuers will likely follow suit as a way to attract the nation's estimated 40 million Americans with "bad" credit, or FICO scores below 620.

Trend #4: More celebrity branded cards

Celebrity endorsements can sometimes be golden for business - or they can become the kiss of debt. The latter scenario occurred with the disastrous rollout the Kardashian Kard, a prepaid debit card that featured reality TV sisters Kim, Khloe and Kourtney.

Despite the failure of the Kardashian Kard, look for banks and credit cards issuers to nevertheless launch new prepaid cards in 2012 that feature high-profile individuals and entertainers of all backgrounds. Already, photos of cast members from the Las Vegas based reality TV show "Pawn Shop" appear on a limited edition prepaid card issued in late 2011. Redwood Hills Financial Group issued the card, which also features a logo of The Gold & Silver Pawn shop.

Also in 2011, RushCard teamed up with New York Yankees baseball pro Alex Rodriguez to launch the DYNASTY Prepaid Visa RushCard. And in November, rapper Lil Wayne unveiled a Discover prepaid card.

Be aware of fees

The knock against prepaid cards is that they have high fees. And with some cards, it's certainly the case that a slew of fees could make prepaid cards more costly to use. However, in comparison to most checking account fees, prepaid cards can often be competitive, according to research from Pew, J.P. Morgan Chase, and others.

Still, if you consider a prepaid credit card in 2012, you can keep your costs lower by using direct deposit or loading a certain required amount onto the card each month. Direct deposit and adding roughly $500 a month or more can typically help you avoid the monthly fees that some prepaid cards charge.

Why Prepaid Cards Are Bad for America

By Scott Bennett on September 6, 2011 10:44 AM | No Comments | No TrackBacks

NEW YORK (MainStreet) - There's one area of the credit card market that is growing by leaps and bounds - prepaid cards - and federal law enforcement officials say it's a troubling trend that can be accounted for, at least in part, by criminals.

According to the Network Branded Prepaid Card Association, American consumers spent $37 billion on prepaid cards in 2010, about twice as much as 2009.

At the same time, the Federal Reserve Bank has been looking at the issue of prepaid cards and money laundering, which in 2007 led the Federal Reserve Bank of Philadelphia to release a report on the topic entitled "Prepaid Credit Cards: Vulnerable to Money Laundering?"

"A number of observers have also emphasized the potential that prepaid card applications have for more efficiently and effectively delivering financial services to the unbanked and underserved segments of society," the paper states. "Unfortunately, many of the same features that make prepaid cards such a positive payment innovation have also attracted criminals interested in exploiting this new payment form to facilitate money laundering."

In 2005 a group of government agencies collectively released a report called "Money Laundering Threat Assessment" (MLTA) that explained how "stored value cards" create a huge loophole in the cross-border cash transport laws that enable terrorists and drug dealers to bring large amounts of cash into the country without detection. Normally, people entering the U.S. have to declare any cash amount over $10,000. But prepaid cards enable criminals to bypass that restriction, usually by repeatedly "reloading" the card in $9,900 increments on a moment's notice, and allow them much wider latitude in creating further, potentially more serious crimes.

"The MLTA emphasizes that the money laundering risk associated with prepaid cards lies in their easy transportability and the relative ease of moving and potentially accessing monetary value anonymously," the Federal Reserve said about the investigation. "The report further notes that prepaid card programs that do not require customer identification or that do not include rigorous monitoring of suspicious activity are most at risk for money laundering abuse."

Just ask the law enforcement officials who tracked the 9/11 Al Qaida terrorists how prepaid cards have changed the crime-fighting battlefield. U.S. authorities were more easily able to catch the moneymen behind the 9/11 attacks - in large part because of their transparency in moving money into the U.S.

According to a 2005 report from the Treasury Department "The 9/11 hijackers opened U.S. bank accounts, had face-to-face dealings with bank employees, signed signature cards and received wire transfers, all of which left financial footprints. Law enforcement was able to follow the trail, identify the hijackers and trace them back to their terror cells and confederates abroad."

"Had the 9/11 terrorists used prepaid ... cards to cover their expenses," the report continues, "none of these financial footprints would have been available."

Today, the federal government is bringing the hammer down on prepaid credit card use, especially those "reloadable" cards that make it easy for criminals to keep pouring cash into the card without detection. In a word, federal authorities are now asking prepaid card providers to keep a running record of how each consumer uses the card, and how many transactions the consumer makes during a five-year period.

It's way too early to say how effective the new rules will be, and how much of a burden it puts on an otherwise thriving industry (a rarity in this economy), but Uncle Sam has taken a cold, hard look at the gaping loopholes exploited by criminals and terrorists using prepaid cards, and he doesn't like what he sees.

That means prepaid card users with illegal intent have a big, fat target on their backs, which won't go away anytime soon

$300 Disappears From Pre-Paid Walmart Debit Card, Store Has No Idea Why

By Scott Bennett on August 8, 2011 5:19 PM | No Comments | No TrackBacks

By Chris Morran on August 5, 2011 12:15 PM

A California was stuck without car insurance and unable to pay her bills after $300 she'd put on her pre-paid Walmart debit card had vanished into the ether. Making matters worse, the retail giant has no idea how the money disappeared.

The woman tells CBS Sacramento that she'd loaded the cash onto her card at a local Walmart, but when she went to pay her car insurance bill online the card was rejected for lack of funds. She checked into her account balance and the money had never been applied, though she had the receipt form the store showing that she'd forked over $300 to put on the plastic.

She returned to the store where no one was able to help restore the lost funds to her card. Further calls to Walmart were also unsuccessful.

"There's a lot of fraud in these kinds of transactions," the President of the Sacramento Better Business Bureau tells CBS about stores' reluctance to believe stories like the customer's. "The business is always going to be kind of skeptical."

It wasn't until Walmart found out that the TV station had gotten involved in the shopper's story that she was able to get her funds back. By this point, her insurance company was demanding that she pay the rest of her 2011 premiums in advance. Once again, with a little help from CBS, the insurer backed off.

As for how the customer's money disappeared from her account Walmart says it doesn't know, but only that a they are looking into it. For her troubles, the company tossed in a $25 gift certificate.

Prepaid Cardholders Content, But Long-Term Users Prove Elusive

By Scott Bennett on July 8, 2011 12:59 PM | No Comments | No TrackBacks

American Banker | Wednesday, July 6, 2011

Most prepaid cardholders are content with their cards, with nine out of 10 customers "extremely" or "very" satisfied with their prepaid cards. However, issuers could do more to keep customers for the long haul, research suggests.

The prepaid debit and payroll card market will total $105 billion in value loaded into accounts by 2014, up from $24 billion in 2009, according to an Aite Group LLC report released June 30. For its research, Aite in February and March surveyed 500 U.S. consumers based on their use of alternative financial services, such as prepaid cards, payday loans and check-cashing services.

Nine out of 10 existing prepaid customers said they were "extremely" or "very" satisfied with their prepaid cards, but many past and present cardholders did not view prepaid cards as a long-term service. Eight out of 10 former prepaid card users said they saw the product as something only for short-term use, and six out of 10 existing prepaid customers expressed a similar view, the survey found.

"So that's a warning sign for prepaid card issuers that, even among the more loyal and satisfied customers, only a minority see it as a long-term" service, Ron Shevlin, the report's author and an Aite senior analyst, said in an interview.

The report suggests that issuers offer incentives for long-term use with loyalty and reward programs.

In the study, Aite explored four customer segments: existing prepaid cardholders, former cardholders who at some point used a card in 2010 but not in the fourth quarter, payday loan borrowers and check cashers. Participants were asked how they perceived prepaid cards and what types of extras they would like to see, such as savings accounts and paper checks. At 15% of respondents, payday loan borrowers were the least likely to view prepaid cards as a better alternative to a checking account. But nearly half, 48%, saw it is as a better option than a credit card, which Shevlin said provides hope to issuers that they could penetrate even that checking-entrenched market. "Clearly it's a minority, but there's still an opportunity to target payday loan borrowers," he said.

Another of the report's suggestions is that issuers position prepaid cards as a long-term alternative to a checking account and that they give potential customers realistic expectations of what they would receive with a particular prepaid card.

Only 14% of former cardholders surveyed described themselves as "extremely satisfied" with their prepaid cards, and Shevlin said he believes they may have had mistaken expectations, such as credit-building services or a savings account option. He suggests that issuers offer alternative card versions that include such perks or services to win back former customers and broaden the appeal for new customers.

"It seems to us like there's a really big opportunity to make prepaid cards a much more mainstream product," Shevlin said.

Social Media Critical to Growth of Prepaid

By Scott Bennett on June 18, 2011 2:32 PM | No Comments | No TrackBacks

In an age where 93% of all business marketing participates in social media and even brokers at financial firms are now harnessing the power and reach of social media for research, client communication, and to attract potential clients and prospects, it seems that social media is critical to the growth of Prepaid as well.

While compliance guidelines and regulations continue to worry many in the Prepaid industry, they are not alone. If you speak to any social media thought leader, they will tell you that many corporations face challenges in using social media, both externally and internally. However, it is possible to walk that fine line since social media isn't going away. And when you look at its merit and power to reach and educate clients and consumers far and wide, especially the underbanked, the more it seems like a winning situation.

Here is where we look at whose IS doing social media well. Innovation and progress rarely happen in a vacuum. Sometimes it's as simple as looking at leading experts outside of your industry for inspiration and ideas or perhaps even sitting down together for a business strategy discussion.

Prepaid Expo recognizes the challenges facing prepaid professionals and strives to meet those needs. In an effort to learn from those who have survived the challenges presented by a maturing industry and inspire the seasoned prepaid executives, Prepaid Expo is looking beyond prepaid for inspiration.

First, we will bring the leading experts from Airlines, Pharmaceuticals, Finance, etc., to address the Prepaid Expo audience on how they came out on top when facing similar challenges. Second, we created VIP sessions for each outside expert, giving senior executives the opportunities to get their questions answered by the experts in a private forum like setting.

If you would like a chance to discuss your business needs and challenges with your peers and experts at Prepaid Expo 2012, sign up today and save the date: March 12-14, 2012. We will see you in Las Vegas!

NBPCA encourages consumer protections for prepaid card users

By Scott Bennett on June 4, 2011 9:48 AM | No Comments | No TrackBacks

Washington, May 20, 2011 -- As the network branded prepaid card industry's leading advocacy voice, the Network Branded Prepaid Card Association (NBPCA) strives to set the bar high for companies involved in providing these cards to consumers, governments and businesses. NBPCA was disappointed to learn of the Florida Attorney General's investigation into five prepaid card companies for alleged deceptive and unfair practices.

NBPCA supports transparency in disclosure of fees to consumers, prior to purchase, so they clearly understand the terms and conditions associated with prepaid cards prior to purchase. In members' drive to set a high industry bar in delivering safe, convenient and efficient prepaid cards to consumers, NBPCA developed disclosure and consumer best practices on general purpose reloadable cards also known as prepaid debit cards.

"As the prepaid card industry grows, offering consumers an innovative option to manage their money, NBPCA members continue to seek ways of constantly improving and evolving these products so they remain meaningful to consumers, businesses and government entities that use these cards," remarked Kirsten Trusko, President, Network Branded Prepaid Card Association (NBPCA).

"To ensure consumers enjoy their card experience and easily understand, 'in plain English,' how prepaid cards work, NBPCA continues to work with federal regulators like the Consumer Financial Protection Bureau (CFPB) to develop educational and comparative tools to help consumers choose the best card, across a large group of competitive programs, to meet their specific needs," added Trusko.

Representing over 70% of the open loop card or branded cards issued in the US, NBPCA members also agree to adopt NBPCA's Code of Conduct and Guiding Principles.

About the NBPCA

The Network Branded Prepaid Card Association (NBPCA) is a non-profit, inter-industry trade association that supports the growth and success of network branded prepaid debit cards and represents the common interests of the many players in this new and rapidly growing payments category. For additional information visit www.NBPCA.org or the NBPCA Twitter page.

Source: Company press release.

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