Prepaid Credit & Debit Cards

The Current by Discover Card: A New Prepaid Debit Card from Discover Financial Services

2009-07-24T16:58:00.004-04:00

We've added the new Current by Discover prepaid debit card to the PrepaidCreditCards.cc website.

An Excellent Card for Teens

Prepaid credit or debit cards are very useful as teaching tools for introducing teens to the world of money and helping young adults learn about managing their money wisely.

With this new prepaid card from Discover, the fees are reasonable, but we were really impressed with the parental controls that are included with the card. Parents can:

set monthly, weekly or daily spending limits. Lots of parents will appreciate this feature, especially if they have kids who need time to learn about budgeting and the pitfalls associated with overspending.
get activity alerts via email or text message. Great for monitoring how a Current card is being used -- and there's no extra charge to use this feature.
restrict a card so that it can't be used at certain locations, like tobacconists, motels or beer distributors.

Other features we like:

There's no charge for funding the card
No minimum balance requirement
Free Direct Deposit, and there's no charge for depositing funds via a credit card or a bank account.

Users of the Current by Discover card can withdraw cash for free four times per month. Additional ATM transactions will incur a $0.50 charge per transaction.

A $3 fee is assessed for replacing a lost or stolen card, or for changing to a new card design.

Though the Current card has no minimum balance requirement, each card needs to be funded with at least $20 when a new account is opened.

The membership fee is $5 per month, but if you pay for a year's membership, the fee is $50 (a $10 discount.)

A parent can have up to 3 Current by Discover prepaid cards in their account, and each card has a funding limit of $2,500.00.

COUPON: When you sign up, use coupon code BT709 to get your first month of membership free. This coupon expires on May 30, 2010.

In this deep recession we're in, it's more important than ever to teach young adult about spending money wisely. Discover's new prepaid card is a timely payment solution that parents from all walks will appreciate, and I'm willing to bet that it's on its way to becoming the most popular prepaid debit card in the American market.

Oh, and the Current card has some very cool designs to choose from. Enjoy!

Visa-Branded Debit Cards More Popular Than Visa-Branded Credit Cards

2009-04-30T23:51:00.008-04:00

If you've been questioning the popularity of debit cards, here's some irrefutable evidence -- in the form of a WSJ article -- that not only are they here to stay, they may even become more popular than standard credit cards in the near future. Here a clip:

"...'The reality is that the vast majority of consumers want to pay as they go,' said Stacey Pinkerd, who oversees Visa's debit-card business.

Visa's net income leapt 71% to $536 million, or 71 cents a share, in the fiscal second quarter ended March 31, from $314 million, or 39 cents, a year earlier.

The surging popularity of debit cards largely reflects the growing use of plastic by American consumers. Credit- and debit-card purchases of retail goods and services vaulted past cash and checks in 2003. Now the recession is giving many consumers second thoughts about their credit cards. Lenders also are making it more expensive to charge purchases and lowering credit limits on credit-card users.

The U.S. government said last month that the personal savings rate rose to 5% in January, the highest level in nearly 14 years. Revolving debt, which mainly reflects credit-card loans, fell 9.7% to $955.7 billion in February, the Federal Reserve said.

'A big group of consumers like the discipline that debit spending can bring them, and that is particularly relevant in this kind of environment,' said Tim Murphy, who oversees MasterCard Inc.'s main payment products around the world.

The Purchase, N.Y., company's debit-card processing volume rose more than 13% last year, compared with a 2.2% decline in credit-card processing. MasterCard, a Visa rival, is likely to offer more details about the spending habits of Americans when it reports quarterly results Friday.

Unlike credit cards, which have balances that can be carried month-to-month, debit cards immediately deduct funds directly from a checking account. Debit cards are especially popular with younger consumers.

Debit cards are less profitable for banks than credit cards, but merchants still pay banks to accept the cards. In the past couple of years, banks have encouraged debit-card use through rewards programs. Those rewards typically are less generous than credit-card rewards.

To be sure, growth rates of debit-card transactions have slowed as Americans rein in their spending. Volume is widely expected to climb by a single-digit percentage this year, compared with more than 10% annually during the past few years. But credit-card usage is expected to keep declining.

At U.S. Bancorp, debit-card transaction volume rose more than 2% in the first quarter from a year earlier. Credit-card purchase volume fell more than 4%.

'Consumers are being more conservative in the way they manage their finances and that leads to a greater willingness to put transactions on debit cards,' said Cliff Cook, chief marketing officer for retail-payment solutions at the Minneapolis bank.

The debit-card business also gets a boost from Americans who got their first card as teenagers a decade or so ago. "As these people move into the family stages and career stages of their lives, the level of their household spending on debit cards goes up," Mr. Pinkerd said..."

Economic Stimulus: Give Everyone A Prepaid Card with A 6-Month Expiration Date

2008-10-22T22:24:00.001-04:00

Now here's an idea I can vote for. Neeraj Nigam, who is making a second run (he was a Republican, but is now running as an independent) for Virginia's 10^TH Congressional District seat, had this to say about stimulating the U.S. economy:

"...Nigam opposes the so-called Wall Street bailout package passed by the U.S. Congress and supported by [incumbent U.S. Rep. Frank] Wolf. Instead, the federal government should give a $500 credit in the form of a prepaid credit card to every American and tell the public they have to use the money in six months.

'That would get money pumped into the economy and the economy would have to go up...'"

Full article can be found here.

Neeraj Nigam's election website can be found here.

Protecting My Identity As I Build My Credit

2008-09-25T22:06:00.005-04:00

I am not even 30 years old, and I have already had my identity stolen twice. It’s easy to assume that I may have been irresponsible with my personal information, or must have at least had my purse stolen before. There has to be a logical explanation, right? The fact of the matter is that I didn’t give out my social security number any more than anyone else going to school and working a job. I protect my belongings and my personal info like a lioness protects her cubs. Yet, it still happened, and it makes me more cautious -- even paranoid -- about the methods I use to rebuild my damaged credit.

A few years ago I learned that a woman in Wisconsin was using my social security number. She wasn’t buying extravagant luxury items on credit cards in my name. She was working and acquiring basic necessities, including average consumer credit, with my number. An expert in the field of private investigation informed me that oftentimes young people with average to slightly blemished credit histories have their social security numbers stolen and sold illegally to adults who do not have social security numbers, who need them to work and acquire basic necessities. If they do not go overboard in their spending and they pay their bills on time, their activities often go unnoticed.

I also had my identity stolen by a family member. Despite careful protection of my personal belongings, a desperate relative went rummaging for identification information - right after I openly stated that I had gone to the Secretary of State to renew my license. I didn’t put it together until after the culprit was discovered, but that didn’t happen right away. I had to argue with the local Social Security Administration office about when and where I applied for my last duplicate card before I realized that someone close to me had pulled a fast one.

I have always heard the gurus say that in order to build credit you have to have credit; using credit cards responsibly and spending less than you make is the only way. Well, how do you do that without putting yourself at risk? If someone gets a hold of my social security number, they will be able to access those credit accounts and use my credit illegally. What if someone intercepts my credit account statements? These days I protect my social security like the Hope Diamond, so I want to build my credit while using my social security number as little as humanly possible.

That’s why I like prepaid credit cards.

Your social security number is not connected to a prepaid credit card; you simply load it with cash and use only what you have on it. If someone finds your lost card, they can’t use it to follow any paper trail to your vital information. Since you can’t use cash to make online purchases, secure rental vehicles, make hotel reservations, etc., plastic is a must-have necessity for living. However, if you want to be able to live without your social security number being a big red target for thieves, you can use prepaid credit cards to do so.

I am particularly impressed with the AccountNow Visa because it includes credit reporting! That’s right, if you make bill payments with the AccountNow card, you can get positive credit reporting to assist you in building initial credit history or rebuilding damaged credit. It is truly possible to make strides toward a healthy credit score while minimizing personal risk.

Social Security Payments To Be Distributed Via Prepaid Debit Cards

2008-01-07T18:03:00.003-05:00

The United States Treasury Department is going to distribute Social Security benefits via prepaid debit cards issued by Comerica Bank. Here's a clip from the Wall Street Journal article:

"...The card could mean significant cost savings for benefits recipients as well as the federal government, Treasury officials and banking experts say. People who sign up for the card will also gain faster access to their money and avoid some security problems, like stolen checks.

But there are some cardholder fees associated with Direct Express, and a significant education effort may be required to get users to accept and understand the card.

The debit card is part of a broader effort by the Treasury to move to electronic payments. In 2005, the department started its Go Direct campaign, which is designed to encourage benefits recipients with bank accounts to switch to direct deposit.

Many state agencies in recent years have offered prepaid debit cards to recipients of unemployment benefits or child support payments, and the Federal Emergency Management Agency in 2005 offered debit cards loaded with emergency-relief funds to hurricane victims.

'We've been working for a while to try to understand the needs of the unbanked,' says Judith Tillman, commissioner of the Treasury's Financial Management Service, which disburses most government payments. 'Combine that with problems we've seen with financial crimes and identity theft, problems with forged checks and stolen checks and so on -- the debit card seemed like the right answer.'

As many as 40 million U.S. households either have no bank account or make little use of banking services, according to an estimate from the Chicago-based Center for Financial Services Innovation. For these people to save effectively, 'the first step is to convert one's pay or benefits check into a convenient and usable form of money,' says Jennifer Tescher, the center's director.

In April, Treasury plans to begin mailings to encourage benefits recipients without bank accounts to sign up for the debit card and those with bank accounts to sign up for direct deposit.

For benefits recipients who sign up for the card, Social Security retirement, disability and survivor benefits as well as SSI benefits will be automatically loaded onto the card account on the designated payment day. Card holders will be able to use the card at ATMs, bank branches, retail locations and online.

Fifteen financial institutions competed to issue the debit card. Comerica was chosen because of its previous experience running state-government debit-card programs, its ability to offer features like text-messaging of low-balance alerts and its reasonable fees, Ms. Tillman says.

Comerica will earn money on cardholder fees, interchange fees when cardholders use the card at the point of sale, and the float on funds sitting in cardholders' accounts. Comerica estimates that there may be anywhere from 2.5 million to 10 million Direct Express card holders in five years. The company's government card business, begun in 2004, now has over two million card holders.

The debit card should mean cost savings for many Social Security recipients who don't have a bank account and who use check-cashing services to cash their benefits checks, banking experts say.

Cardholders will get one free ATM cash withdrawal per deposit per month, but Comerica will charge 90 cents for each additional withdrawal. Like other debit-card holders, users may also face surcharges at many ATMs. Other fees include $3 for international ATM withdrawals, 3% on international currency exchanges, 50 cents for each online bill payment and 75 cents per month for paper statements.

Cardholders can avoid surcharges at more than 56,000 designated ATMs, including those run by 7-Eleven and PNC Bank. ATM balance inquiries and cash withdrawals at a teller window will be free, and there will be no fees for overdrafts, declined transactions, or inactivity. Cardholders can opt to receive free deposit notifications or low-balance alerts via text message, email or automated phone call.The card should bring substantial savings for the federal government. The government's cost to issue a paper check was 89 cents in fiscal year 2006, versus nine cents for an electronic payment. Four million recipients of Social Security and SSI don't have a bank account. If each of them signed up for the debit card, the government would save $44 million a year, Ms. Tillman says.

The debit cards should be more secure than paper checks, the Treasury and banking experts say. In 58,000 cases last year, Social Security checks were forged, Ms. Tillman says. Nine times out of 10, problems with benefits payments are associated with paper checks, she says. The debit-card accounts are protected by PIN numbers and FDIC insured."

The ReadyCARD Prepaid MasterCard Hits The Streets

2006-09-15T21:57:00.000-04:00

The Ready Credit Corporation and the Palm Desert National Bank have joined forces to produce a highly convenient and efficient prepaid debit card solution. It's called the ReadySTATION; it's basically a self-serve kiosk that issues the ReadyCARD prepaid MasterCard®. Each ReadySTATION kiosk issues a prepaid debit card that's activated and ready to use as soon as you buy the card. The ReadyCARD is co-branded with MasterCard, so you can use it to buy products and services wherever merchants accept MasterCard.

ReadySTATION kiosks have already been setup in Minnesota and Texas, with more coming to the rest of the country later this year.

Further details about ReadySTATION kiosks and the ReadyCARD can be found below in the following clip from a recent press release:

"Ready Credit Corporation and Palm Desert National Bank today announced the launch of a self-service kiosk (ReadySTATION) that issues a prepaid MasterCard® card. This new technology allows consumers to purchase a ReadyCARD Prepaid MasterCard (ReadyCARD) that is activated and ready to use immediately. The ReadySTATION also allows consumers to reload Personalized ReadyCARDs and check their card balances for free. ReadySTATION and ReadyCARD provide consumers with an easier and more convenient way to acquire and use a prepaid MasterCard card. Merchants can now provide enhanced financial services to their clients through this easy to use, self-service technology.

'Together, the ReadySTATION and ReadyCARD deliver the most convenient and easy-to-use prepaid card solution to consumers and retail locations. In less than one minute a customer can acquire a ReadyCARD, allowing the accessibility of MasterCard to all consumers,' said Tim J. Walsh, President and CEO of Ready Credit Corporation. 'Our goal was to provide an instant, anonymous MasterCard from a self service kiosk and to allow consumers to easily reload their cards and check their card balances in locations where they live, shop and work.'

'Our many years of experience in the prepaid card market have made us aware of the need and demand for a powerful and easy to use self service technology solution. As the issuing bank for the ReadyCARD Prepaid MasterCard, we are pleased to be working with Ready Credit Corporation and MasterCard in bringing this innovative product solution to consumers,' said Jim Tingey, Senior Vice President, Palm Desert National Bank.

Ready Credit has started deploying ReadySTATIONs in Minneapolis, MN and El Paso, TX and anticipates a nationwide deployment beginning in the fourth quarter of 2006."

Immigrants Will Like The PODER Prepaid Debit Card

2006-05-26T00:24:00.000-04:00

Immigrants often have trouble getting a financial foothold in the U.S. due to banks' stringent ID and minimum deposit requirements. Spanish-speaking immigrants also face the added frustration of a language barrier.

So today's news will probably be music to the ears of immigrants all across the country: PODER has released a new prepaid debit card specifically targeted toward the Spanish-speaking, immigrant population in the U.S.

Like any other MasterCard®-branded, prepaid credit or debit card, the new PODER prepaid debit card can be used to pay for goods and services wherever debit MasterCard is accepted. The PODER prepaid card also features some other exciting benefits that are both free and automatic:

Up to $10,000 worth of Accidental Death & Dismemberment insurance,
Accidental Medical coverage with a hospitalization benefit that covers up to $125.00 per day,
Legal services in Spanish for commercial, labor, traffic, and immigration issues.

To get a PODER prepaid debit card, you must:

be at least 18-years-old,
provide your full name, U.S. snail-mail address, your date of birth and your Social Security number (non-citizens can apply for the card by submitting details of an official, government-issued ID.)

For more information about the PODER prepaid debit card, point your web browser to www.PoderOnline.com.

PODER is currently running a limited-time promotion: cardholders can apply for a second card for a friend or family member for free.

A Prepaid Credit Card with Rewards?

2006-04-19T08:13:00.000-04:00

The prepaid credit card market continues to heat up, and that means companies are going to be coming out with new prepaid debit / credit cards with added features, in an effort to separate their product from the rest of the pack.

Looks like the folks @ PTS Card Solutions will be releasing a new prepaid debit MasterCard® with rewards. All I can report right now is that the new card will be called the "FastMax Rewards" prepaid debit MasterCard, and it should be released sometime before July of this year. Further details about the FastMax Rewards card can be found below in the snippet from today's press release:

"PTS Card Solutions Inc. (Pink Sheets: PTCD) announced today that Global Links Card Services Inc. ('GLCS'), a wholly owned subsidiary of PTS Card Solutions, has received approval from MetaBank, Sioux Falls, S.D., and MasterCard for issuing its private branded ("FastMax Rewards") prepaid MasterCard®. The card will be available in the second quarter 2006 through GLCS agents and co-branded marketing partners. Debit MasterCard cardholders can use their cards at more than 23 million acceptance locations in 210 countries around the world, including more than 1 million ATMs and other locations where cash can be obtained. 'MasterCard offers our co-branded partners and agents flexibility in reaching their customer base and we look forward to increased activations in 2006,' said James Brewer, CEO, Global Links Card Services Inc. As principal member of MasterCard, Meta Payment Systems, Sioux Falls, S.D., issues the FastMax Rewards Debit MasterCard on behalf of GLCS.

About PTS Card Solutions Inc.

PTS Card Solutions Inc. is a partly owned, controlled subsidiary of PTS Inc. (OTCBB: PTSH). PTS Inc. recently assigned all of its interests in Global Links Card Services to its newly acquired subsidiary, PTS Card Solutions Inc. Global Links Card Services Inc. markets its FastMax Prepaid Debit Card through various agents and distributors.

Please visit the company's Web site: http://www.glcsi.com/."

Federal, State and Local Governments Jump Onto The Prepaid Debit Card Bandwagon

2006-02-07T11:24:00.000-05:00

It's really no surprise that federal, state and local governments are starting to use prepaid debit cards for all types of payments and disbursements, like child support disbursements. It's all about efficiency, and I think we all like the idea of our government agencies focusing on improving efficiency!

Here's a snippet from an interesting press release that was issued today:

"Fidelity National Information Services (NYSE: FIS), formerly known as Certegy, today announced a three-year exclusive agreement with Official Payments Corp.® , a subsidiary of Tier Technologies (Nasdaq: TIERE) of Reston, Virginia, to issue Visa® prepaid debit cards.

Through its relationships with federal, state and local government entities, Official Payments Corp. facilitates payments between individuals and governments using comprehensive technology solutions. Under the terms of the agreement, Certegy will provide Official Payments with Visa-branded prepaid debit products as part of an initiative to convert government disbursements to electronic prepaid card solutions. The relationship will initially focus on the conversion of child support disbursements, expanding to include additional prepaid debit programs in the future.

Through this innovative solution, child support disbursements will be loaded on prepaid stored value cards, which automatically reload as future payments are received. Official Payments will distribute VISA, Interlink® and Allpoint branded cards. This unique payment program will allow recipients to receive their child support payments faster, with no-cost access to their funds.

'The convenience and cost-saving implications of a prepaid debit card program of this type are significant,' said Gary Norcross, president of Integrated Financial Solutions for Fidelity. 'We are very excited to partner with Official Payments to enable consumers to receive payments in a fast, safe and easy manner.'

'We are delighted to work with Fidelity National Information Services to provide prepaid debit card payment options to government entities across the nation,' said T. Jack Williams, senior vice president, strategic programs for Tier Technologies. 'Their experience and leadership in the transaction processing and payment services industry will enable us to meet the needs of our customers more effectively.'

About Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. (NYSE: FIS) is a leading provider of core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top ten. Nearly 50 percent of all U.S. residential mortgages are processed using FIS software. Headquartered in Jacksonville, Florida, FIS maintains a strong global presence, serving over 7,800 financial institutions and over 100,000 retailers in more than 60 countries worldwide. For more information on Fidelity National Information Services, please visit http://www.fidelityinfoservices.com.

FIS is a majority-owned subsidiary of Fidelity National Financial Inc. (NYSE: FNF), number 261 on the Fortune 500. More information about FNF can be found at http://www.fnf.com.

About Official Payments Corp.
Official Payments Corp., a Tier company (Nasdaq: TIERE), delivers innovative financial transaction processing services to governments, businesses and consumers in the U.S. and abroad. Headquartered in Reston, Virginia, Official Payments' clients are comprised of more than 2,000 federal, state, and local governments and agencies including the IRS, educational institutions, utilities and commercial clients. Official Payments' solutions drive financial transaction processing for a diverse range of markets. From the electronic government payments market Official Payments pioneered in 1996, to the rapidly growing prepaid card industry, to leading-edge markets such as biometric payment systems, Official Payments is committed to making payments go faster, smarter and safer. For more information, visit http://www.officialpayments.com."

Are You Ready for The Carmen Electra Prepaid Credit Card & Gift Cards?

2006-01-26T02:57:00.000-05:00

That's right, the Carmen Electra Prepaid Credit Card and the Carmen Electra Gift Cards are coming. One thing's for sure: the card art will be attractive. Yup.

More details can be found below in the snippet from a recent press release:

"Payment Data Systems, Inc. (OTC BB: PYDS), an integrated electronic payments solutions provider, announced today that it has signed an agreement with Meta Payments Systems (MPS), a division of MetaBank. Meta Financial Group, Inc. is the holding company for MetaBank.

Under the Agreement, MetaBank will be the issuing bank for select PDS prepaid card programs running on the various card associations and debit networks.

MPS and PDS will work together to develop a series of competitive celebrity, gift, and personal spending prepaid debit card programs. PDS is focused on aggressively developing and marketing prepaid gift cards, personal spending cards, and health benefits programs.

Louis Hoch, President and COO of Payment Data Systems, Inc, said, 'We selected Meta Payment Systems for their unparalleled leadership, financial viability, and their premier standing with the various card associations. The combined ability of MPS and PDS will create a card-issuing platform that will have unique execution and product capabilities.'

Ian Stromberg, Director of Business Development for Meta Payment Systems, said, 'We are very pleased to have PDS join us as one of our Program Managers. PDS brings to this relationship a drive to create innovative card products for this market and we're looking forward to the new opportunities they will present.'

About Payment Data Systems, Inc.
Payment Data Systems is an integrated payment solutions provider to merchants and billers. We provide an extensive set of tailored products to deliver world-class payment acceptance, processing, and risk/fraud management. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. Whether you are in the market for card issuance, payment acceptance or bill payment solutions we have a solution for you.

Payment Data is the owner of the electronic bill payment portal, http://www.billx.com, which has the ability to transmit payments to thousands of national billers.

Payment Data is also the exclusive license holder of the rights to market the Carmen Electra gift and prepaid cards. To receive updates on the Carmen Electra card program sign-up at www.carmencard.com."

MoneyGram Teams Up with KeyBank To Offer A $9.95 Prepaid Debit Card

2005-11-15T19:40:00.000-05:00

You probably know MoneyGram as the company that provides money order and money transfer services. Now MoneyGram has teamed up KeyBank to take on the prepaid market, offering a new prepaid debit MasterCard. Details can be found below in the snippet from a press release issued today:

"MoneyGram will debut its new prepaid card program to the convenience store industry during the annual National Association of Convenience Stores (NACS) Show, Nov. 15-18 in Las Vegas. The company expects a full launch of the MoneyGram Prepaid MasterCard® card program in the U.S. in 2006, but select agents will be invited to sign up for early roll-out.
With the prepaid debit card program, MoneyGram is expanding into a new line of payment services. Currently the company is a leading provider of money orders in the U.S. and major provider of global money transfers services, but this is the first time it has offered a card product.

The MoneyGram prepaid card, issued by KeyBank, will sell for $9.95 and enable customers to 'load' cash onto the card at more than 20,000 MoneyGram locations in the U.S. The stored funds can then be withdrawn at more than 900,000 ATMs or used to make purchases at more than 24 million locations around the world.

'We're excited about the prepaid card,' said Phil Milne, president and chief executive officer of MoneyGram International, Inc. 'It will meet the needs of the unbanked or underbanked customer who does not qualify for traditional credit cards. Whether traveling or shopping, it's a more convenient and safe way to carry cash, and unlike cash or checks, the MoneyGram prepaid MasterCard card can be replaced if lost or stolen.'

'MoneyGram is thrilled to bring this opportunity to the convenience store industry. We feel there is a strong overlap in the demographics of the money order, money transfer and real-time bill payment customer with the prepaid card customer,' said David Karl, vice president of business development and sales at MoneyGram. 'People using MoneyGram services at convenience stores appreciate fast and efficient service. MoneyGram's prepaid card fits right in with this model, with no need to worry about exact change or having enough cash on hand for convenience purchases.'

MoneyGram's prepaid card currently is sold in a limited number of locations in New York and Miami. Prior to the full rollout of the card program next year, MoneyGram plans to begin offering the cards in key markets around the country.

According to Ted Dargan, MasterCard International's vice president, stored value team lead for the Americas, MoneyGram's industry expertise ideally positions the company as a marketer of prepaid MasterCard cards.

'The MoneyGram prepaid MasterCard is a powerful and versatile payment solution for consumers who desire the advantages that payment cards deliver over cash and checks,' said Dargan. 'MoneyGram's industry leadership and deep understanding of consumers with non-traditional banking relationships are important to providing this customer segment with a prepaid card that delivers tremendous value.'

MoneyGram International, Inc., (NYSE:MGI) is a leading global payment services company and S&P MidCap 400 company. The company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram has 84,000
money transfer agent locations worldwide in approximately 170 countries."

If The People @ Mint Have Their Way, Prepaid Credit Cards Will Soon Be As Popular in Canada As They Are In The United States

2005-11-10T13:43:00.000-05:00

Prepaid credit and debit cards are selling very well in the United States; Mint hopes to make them just as popular in Canada. Here's a snippet from a press release issued today:

"Mint Inc., a subsidiary of Mint Technology Corp. (TSX-V: MIT), is pleased to provide the following update on the Company's progress on the introduction of prepaid credit cards in the marketplace. A widely accepted and popular method of payment in the United States, Mint is the first company to deploy and support prepaid, reloadable credit card programs in Canada.

Mint announced today that two of the Company's prepaid, co-branded credit cards have launched to date and are being sold through retail outlets in and around Toronto. Initial sales of the cards show a positive trend in consumer acceptance. Furthermore, another five prepaid, co-branded credit cards are due to be launched over the next quarter, and will be distributed through nationwide retail networks. The number of cards pre-sold equals 275,000 thus far, providing upfront revenue to the Company. In addition to the co-branded programs being introduced, Mint has been approached by several corporations to supply another Canadian first -- a prepaid payroll credit card. Participating companies will supply their employees with a prepaid credit card to automatically transfer paycheques and corporate expenses to their cards. The convenience of a prepaid payroll credit card will lead to direct administrative cost savings.

Mint's prepaid credit card programs generate revenue from four different sources; consumer card purchases, cardholder transactions, monthly user fees, and interest on the prepaid float.

A large segment of Canadians who have been excluded from obtaining traditional credit cards now have access to the convenience, services and safety that a credit card provides. Virtually anyone can purchase a prepaid credit card because prepaid credit cards do not require a credit check and age requirements are lower. A prepaid credit card can be useful in countless situations including parents funding university expenses or wanting to teach financial responsibility to their children; giving consumers a safe way to make online purchases; or supplying a platform for business owners to provide and track employee expenses. Prepaid credit cards can be used at the millions of worldwide locations where traditional credit cards are accepted today including retailers, websites, mail order, mobile purchases and select ATM cash withdrawals.

While the market is virtually untapped in Canada, prepaid credit cards are the fastest growing segment of the payment industry in the United States. The Pelorus Group projects that the number of prepaid debit cards [US equivalent to Canadian prepaid credit cards] will grow from 15 million in 2003 to just over 50 million in 2008. A study by Mercator Advisory Group indicated that in 2004, US$159 billion was loaded onto prepaid cards, representing a 24% increase over 2003 in the United States."

Wachovia Bank Jumps Into The Prepaid Debit Card Game with the Introduction of A New Prepaid Payroll Card

2005-10-05T17:59:00.000-04:00

As a testament to the increased popularity of prepaid payroll cards, Wachovia Bank has just unveiled a new prepaid (Visa) debit card designed specifically to compete in the prepaid payroll card market. Here is a snippet from today's press release from Wachovia:

"Wachovia today announced that it has launched Wachovia Direct Pay(R), a Visa-branded prepaid debit card that provides employers an additional option for increased participation in payroll direct deposit. Employers can electronically deposit employees' net pay and other payroll-related funds to the card via ACH. The employees/cardholders can then use the card to access their net pay at ATMs and merchant locations.

Businesses can use Wachovia's Direct Pay to deposit payroll funds for employees who do not have a traditional bank account and do not participate in a direct deposit program. This service reduces the costs associated with processing, printing and mailing paper checks and can help eliminate the expenses related to replacing and reconciling lost or stolen checks.

'Direct deposit of payroll is more secure than paper checks and employers of all sizes can realize long-term cost savings from sponsoring a payroll card program,' according to Michael S. Daley, Senior Vice President and Head of Product Solutions with Wachovia's Treasury Services Division. 'Wachovia's Direct Pay cards are funded via standard ACH direct deposit transactions and require no changes to a company's direct deposit file.'

For employees without bank accounts, payroll cards provide quicker, safer access to their money than a paper check by eliminating the check cashing fees incurred by non-account holders and saving time by not having to wait in line to cash their payroll checks. Payroll cards give employees a convenient way to securely access their funds 24 hours a day, seven days a week.

Wachovia Direct Pay cards are accepted worldwide at ATMs, including more than 5,300 Wachovia ATM locations as well as more than one million ATMs in the Visa/Plus network. In addition, employees can maximize their purchasing power by using the card to pay for goods and services at the 24 million merchant locations that accept Visa debit cards. Cardholders can access account information 24 hours a day via the Web, via Interactive Voice Response (IVR) or by speaking directly to a customer service agent.

Wachovia supplies its clients with marketing materials to help promote this service and card use to their employees. With its fast and easy implementation process, the service can be set up within a few payroll cycles. 'When employees do not have a bank account, Wachovia Direct Pay provides employers with an easy option that allows them to deposit their pay electronically. Cardholders benefit by having access to their funds more quickly than with a paper check,' says Dana Blaylock, Vice President and Card Products Manager with Wachovia's Treasury Services Division. 'A payroll card is a secure option for an employee and is cost-effective for the employer.'

As payroll cards continue to evolve, Wachovia continues to evaluate features and functionality to enhance and expand its prepaid card offerings."

FYI: Wachovia is America's 4th largest bank holding company based on assets and is the 3rd largest full-service brokerage firm based on client assets. Wachovia has $512 billion in total assets, $48 billion in stockholders' equity and average deposits totaling $297 billion.

Multi-Purpose Payroll Cards: The Next Generation of Prepaid Credit Cards

2005-10-01T15:48:00.000-04:00

For lots of reasons, consumers around the globe are turning to prepaid credit and debit cards as an alternative to standard credit cards (no debt, privacy, worldwide acceptance, etc.) Now Corporate America is jumping into the prepaid game, looking to take advantage of the many benefits that prepaid cards can offer businesses, the most significant being the use of prepaid cards as a money-saving alternative to paychecks.

Businesses will find the latest news from USA Paycard, Inc. exciting. USA Paycard has added several new features to its prepaid payroll card that are sure to get noticed by payroll officers across the country. Here's a snippet from a recent press release:

The payroll card traditionally allowed employers to use direct deposit for employees who lack a traditional banking relationship, translating into lower payroll check processing costs – an average of $48 per employee, per year according to a 1999 NACHA study. Now businesses are able to benefit from:

Commission Prepaid Credit Cards – conveniently allows staff to receive commission funding on their PayCards, which gives them instant access to cash at over 1 million ATM domestic and international locations and 30 million domestic and international point-of-sale terminals.

Termination Cards – efficiently distributes termination pay to employees at very little cost. Each terminated employee receives a PayCard which serves as their final paycheck. Employees have immediate access to their funds upon receiving the card from their employer.

Per-Diem Cards – distribute expense payments to employees working off-site in real time. By using a 'Funding PayCard,' money can be sent to any other PayCard in real time at a fraction of the cost of a standard wire transfer.

Budget Cards – allows employers to distribute budget funds to key personnel efficiently. Money is allocated to the proper personnel for business use and can be monitored by supervisory staff members anywhere internet access is available.

USA Paycard, Inc. and its partners handle the card set up, customer service and transaction processing. Additionally, USA Paycard assists employers with employee solicitation, sign-ups, and answering any card related questions. There are no employer costs to the program and the cards can be used by employees for free using the 'cash-back' option at retail POS locations."

Some Sage Advise About the Prepaid Credit and Debit Cards You Give To Your High School or College Bound Kids

2005-09-24T12:56:00.000-04:00

Prepaid credit and debit cards can be a great way to introduce high school and college bound teens about managing finances. Prepaid cards are really the perfect training tool: kids get to feel good about managing their own school-related spending (I know I would have loved to do my own shopping when I was a teen), etc. while parents get a great tool that can go a long way toward teaching kids the value of money. Parents also get to have complete control over spending limits which takes a whole lot of stress out of the equation.

Alan Safahi, President and CEO of Card Express, Inc. (CardEx) in Irvine, California, offers a few pointers for parents who give prepaid cards to their kids:

Explain the purpose of the card with your child and create a workable budget
Advance the card with enough funds for everyday, school-related items and discretionary items
Reload the card at regular intervals (up to the dollar maximum) to gauge average spending/saving
Review the card usage with the kids and offer periodic encouragement and advice as needed
Allow funds to "rollover" as a reward, if your son or daughter doesn't entirely use the original loaded amount

The above bullet points are part of a Card Express press release.

Mitsubishi Motors Offers Prepaid Debit Card to Pay for 12,000 Miles Worth of Gas On Any 2005 Model Year Vehicle Purchase

2005-09-21T19:29:00.000-04:00

Auto manufacturers have been using creative tactics to get their sales up. We've all seen the "employee discount" incentives going around--and they've done a great job at boosting car sales. Now Mitsubishi Motors has come up with a new incentive idea: The new "Gas Comes Standard" incentive gives anyone who buys a 2005 model year Mitsubishi car a prepaid debit card that they can use to purchase gas at any gas station for a year (a year = 12,000 miles.) Each prepaid debit card is worth $1,500 - $2,500; the amount set for each customer is based on the estimated gas the purchased car will consume within 12,000 miles of driving. With gas prices continuing to rise as powerful hurricanes batter the Gulf region, this deal may be very attractive for anyone currently in the market for a new vehicle, especially anyone looking to buy a vehicle made by Mitsubishi.

Interested? Well then stop by a Mitsubishi dealer for more details.

New Service Combines Cell Phone with Prepaid Credit Card

2005-09-19T19:16:00.000-04:00

A new payment system combines the safety and convenience of a prepaid credit card with your cell phone. The new MobileLime system works with any cell phone. You basically register @ the MobileLime website, then you fill your account with cash (for prepaid use) or you can link your account to an existing standard credit card. At this point you are ready to shop. When you are ready to pay for whatever you're buying, you call up MobileLime and enter your 4 digit PIN number. You then enter the store's location code to complete the cell phone part of the transaction. Your payment is complete only after you give the cashier the last 4 digits of your cell phone number.

Will MobileLime take off? Well, it seems a bit cumbersome to me, but the system has some clear advantage that include security (you don't have to give anyone your credit card number) and MobileLime constantly has coupons/discounts available that you can use to save money on your shopping sprees. But some have been reporting bugs in the system like dropped calls and store employees who don't know exactly how the system works (pay with your cell phone? Excuse me?) Hopefully the kinks will get ironed out soon, as this system could help to reduce the crimes associated with credit card use and employee theft. Best wishes to MobileLime!

For more information, point your web browser to www.MobileLime.com.

NetSpend Corporation To Sell New Prepaid Visa Debit Cards At Safeway Stores

2005-09-12T15:12:00.000-04:00

You will very soon be able to buy a Visa branded prepaid debit card at your local Safeway store. Safeway, one of America's largest and well-known supermarket chains, will sell 2 types of the All-Access prepaid Visa cards: a typical re-loadable prepaid card and a prepaid gift card that will be available preloaded with $25, $50 or $100. The new card will cost $9.95 to purchase, will not require the purchaser to have a bank account and no credit checks will be performed. The fact that this new card is co-branded with Visa means that purchasers of the card will enjoy worldwide acceptance for purchasing all manner of goods and services wherever the Visa logo is displayed.

The most unique and interesting feature of this new prepaid Visa card is the All Access National Savings Program which gives the purchaser the option of linking the prepaid card to a federally insured, interest-bearing savings account. Click here to read more about this new prepaid card...

Morgan Beaumont Now Rolling Out New Prepaid Payroll Debit Card

2005-09-07T14:47:00.000-04:00

Morgan Beaumont Inc, the Florida-based provider of prepaid debt and stored value cards, has announced the rollout of their new prepaid payroll card which gives employers the option of paying their employees with a PIN based, prepaid debit card instead of the typical payroll check.

Personally, I really don't understand the concept. Sure, it's great for employees because there's no check to cash and their hard-earned funds would be available to them immediately. But what about paying the rent? In my opinion, paying rent with cash is never a good idea because there's no document trail that can be easily referenced when necessary (as there is when business is transacted by bank draft.) Given the choice of getting paid by check or by prepaid debit/credit card, I would certainly choose the check option.

Please feel free to post a comment if you have any insight as I'm interested to know more about the benefits--for both the employer and the employee--of paying employees with a prepaid debit card. Thanks.

New Prepaid Credit Card Will Feature Star Quarterbacks from The Canadian Football League

2005-08-28T04:09:00.000-04:00

News out of Canada: Plastic Now, Mint Inc. (owned by Mint Technology Corporation) has teamed up with Peoples Trust of Vancouver and The Canadian Football League Players' Association to offer a new prepaid credit card (prepaid MasterCard, to be precise) that will feature League athletes. Here's a snippet from a recent press release:

"Offering football fans the opportunity to carry their favorite quarterbacks in their wallets and to support the players, the CFLPA will initially launch the first of eight prepaid MasterCard cards in their "Signature Series" featuring the image and "autograph" of a star quarterback. Fans will further benefit by using the CFLPA card program to accumulate points for every net retail dollar they spend. Points can be redeemed toward an incredible range of rewards, including authentic autographed jerseys, helmets and official CFLA Pro Players footballs, experiences with favorite players and contests and more."

Click here to read the full press release...

Microsoft Offers The New XBox Live Prepaid Credit Card in Germany

2005-08-02T12:46:00.000-04:00

Aimed at German teens, the new XBox Live prepaid credit card offers XBox Live fans some great benefits (XBox Live is a worldwide online gaming platform based on Microsoft's XBox gaming console.) Benefits include:

Special XBox Live privileges
The purchasing power and worldwide acceptance of Visa
Special travel reservations and discounts.

The minimum age for the new prepaid card is fourteen (14) so the card should do well demographically.

Will Microsoft offer a similar card in the United States and other large markets? Who knows!?

Click here to read the full story.

Hotels Will Soon Have Lobby Kiosks Offering Prepaid Visa Cards That Will Double As Hotel Check-In Cards

2005-07-29T16:39:00.000-04:00

The companies WebRaiser, Olea, and eCommLink have collaborated to produce a hotel kiosk system that hotel patrons can use to buy a prepaid Visa card, which would also function as a hotel check-in card. Pretty cool, eh? The prepaid Visa card dispensed by the machine can be used to buy goods and services wherever Visa is accepted.

Click here to read the full story.

Get A Prepaid MasterCard or Prepaid Visa Card At Your Local Walgreen's Pharmacy

2005-07-29T16:35:00.000-04:00

You can now get a Green Dot® prepaid MasterCard or prepaid Visa card at your local Walgreen's pharmacy. Walgreen's is America's largest drug store chain, with close to five thousand stores across the country. Green Dot® stored value cards are issued by Columbus Bank & Trust, and are distributed by Next Estate Communications, Inc.

The American Red Cross Embraces Prepaid Debit Cards As A Way To Speed Aid To Hurricane Victims

2005-06-15T17:11:00.000-04:00

The American Red Cross prepares to make the process of providing aid for hurricane victims more efficient this year by rolling out a new specialized prepaid debit card called the Client Assistance Card (CAC.)

The "Hello Kitty" Prepaid Credit Card Gets a Poor Grade from Consumer Reports

2005-06-14T15:55:00.000-04:00

Consumer Reports, America's premier independent product review organization, has given the "Hello Kitty" prepaid credit card a poor grade. The Hello Kitty card is a prepaid credit card that is aimed at kids who are too young to have a regular credit card. The company that makes the card, Legend Credit, is promoting the card as a tool that can help youngsters learn about handling money. But in fact, the Hello Kitty card comes with some hefty fees, including a $14.95 activation fee, a $2.95 monthly maintenance fee and a $14.95 annual fee. Consumer Reports advises consumers to shop around for better deals; many other prepaid credit cards being offered today have no annual fee and no monthly maintenance fee.