Prepaid

NetSpend partners with Western Union to offer co-branded prepaid card

TSYS subsidiary NetSpend announced on Monday that it has partnered with Western Union to develop a co-branded prepaid card that will be available to American consumers later this year. The Center for Financial Services Innovation estimates that approximately 68 million Americans are financially underserved or unbanked, many of whom turn to... Read More...

AmEx introduces Serve prepaid product at Walmart retail stores

American Express announced on Monday that Serve, its reloadable prepaid product, is available for purchase at over 4,000 Walmart locations in the U.S., expanding the company’s free cash reloading network to 19,500 locations nationwide. “By offering American Express Serve alongside Bluebird at Walmart, we’re expanding our portfolio of... Read More...

CFPB begins testing new prepaid packaging disclosures

The CFPB is currently considering proposing new prepaid packaging disclosures that will help consumers shop by comparison. The regulator said on Tuesday it will propose a rule to standardize the disclosures after it finishes interview testing with consumers. In its second round of testing, consumers across the country will receive test versions... Read More...

hyperWALLET, Karrot partner to launch prepaid loyalty rewards program

Payments provider hyperWALLET announced on Wednesday that Chicago-based Karrot has launched its branded prepaid card services program to allow users in the U.S. and Canada to cash in loyalty points for local currency on prepaid cards. “We are pleased to partner with hyperWALLET to directly reward our channel incentive program participants,”... Read More...

JetPay debuts MAC Visa Prepaid Card for payroll clients

JetPay announced on Tuesday the rollout of the Money Access Visa Prepaid Card for employees and employers who are clients of JetPay Payroll Services, the company’s payroll processing business. “I wanted to make banking and purchasing services available equally to everyone in America,” JetPay founder and Chairman Bipin C. Shah said. “As... Read More...

Prepaid industry receives grade of “A-” for quality

A report released by the Center for Financial Services Innovation earlier this week gave the prepaid industry an overall grade of “A-“ for quality. The scorecard evaluated 18 prepaid cards—comprising 90 percent of the marketplaces—against the CSFI’s recommendations outlined in its Compass Guide to Prepaid and its Compass... Read More...

Visa develops database to help detect, prevent prepaid fraud schemes

Visa announced on Thursday the completion of a centralized database that will allow financial institutions, processors and program managers to detect and prevent fraud schemes aimed at prepaid cards. The Visa Prepaid Clearinghouse Service allows banks, payments processors and other participants to share prepaid card data, including enrollments,... Read More...

JPMorgan adopts new prepaid disclosure for Chase Liquid

JPMorgan announced on Wednesday the adoption a new disclosure model for its Chase Liquid prepaid card put forth by the Pew Charitable Trusts. The new disclosure box provides customers with a description of fees and deposit availability schedule in an easy-to-follow format. “Our customers appreciate that we use clear language when we... Read More...

AmEx, MatchMove launch prepaid virtual product for online purchases

American Express and Singapore-based MatchMove announced on Thursday the launch of a prepaid virtual product that will allow customers to use funds in their MatchMove Wallet to make purchases on the AmEx network. MatchMove American Express Virtual Pay provides a number of security features, such as a one-time password, and allows customers to... Read More...

Orange Cash MasterCard-branded prepaid card launches in Spain

Orange announced on Wednesday the launch of MasterCard-branded reloadable prepaid card Orange Cash in Spain. The card allows consumers to make online payments, transfer funds to other users’ phones and cash withdrawal at MasterCard ATMs. No bank account is required to use the card, and the card is compatible with all telephone numbers for all... Read More...

GAO report highlights concerns in college debit, prepaid market

A GAO report released last week highlighted areas for concern regarding college debit cards, which the GAO found were provided by 11 percent of U.S. colleges and universities in 2013. The data showed that most debit or prepaid college card offerings provided students the ability to receive their federal student aid and other payments on the... Read More...

Fitch Ratings: Prepaid cards likely to become more popular

Fitch Ratings said the strong growth seen in the U.S. prepaid market will likely continue as consumers opt for the cards to better manage their finances. Recent data provided by the Federal Reserve showed general purpose prepaid card payments have remained the fastest-growing noncash form of payment for the past several years. The number of... Read More...

Payments executive Ralph Bianco to lead JetPay’s prepaid card launch

JetPay announced on Thursday that payment executive Ralph A. Bianco has joined the company as the executive vice president and general manager of card services, where he will lead the company’s prepaid card launch. Bianco is the former COO of Adaptive Payments, where he led product development and management, as well as business operations.... Read More...

Visa reports 9.2 percent increase in electronic payments in U.K. for 2013

Visa announced on Wednesday that electronic payments made with credit, debit, commercial and prepaid cards rose by 9.2 percent in the U.K. in 2013. Overall spending by Visa cardholders in the U.K. increased 9.3 percent year-over-year. Debit payments comprise more than 80 percent of Visa Europe’s business in the U.K. Spending on commercial... Read More...

Sen. Warner introduces bill to require additional prepaid disclosures

Sen. Mark Warner (D-Va.), a member of the Senate Banking Committee, introduced legislation last week that would require banks to be more transparent in disclosing fees associated with the use of prepaid cards. “At nearly $700 billion in sales each year, prepaid cards are one of the fastest growing parts of the financial industry,” Warner... Read More...

JPMorgan considers exiting prepaid card business

JPMorgan announced on Thursday that it is considering exiting the prepaid card business and that it will discontinue marketing and acceptance of new prepaid cards. The company said it would “explore a full range of options” for its prepaid business, including a sale. Its prepaid business includes all corporate, public and EBT programs, as... Read More...

MasterCard acquires Turkish payment provider Provus

MasterCard announced last week the completed acquisition of Turkish payment provider Provus Bilişim Hizmetleri, which services financial institutions, retailers and telecommunication service providers. MasterCard said the acquisition is part of the company’s strategy to increase its presence in high-growth markets and provide value added... Read More...

Bahrain’s BMI Bank, MasterCard partner to offer prepaid cards

Bahraini retail and commercial bank BMI Bank announced last week the launch of two new prepaid cards in partnership with MasterCard. The cards—a multi-purpose prepaid card usable for purchases at retail outlets, bill-pay services and ATM withdrawal, and an internet prepaid card designed specifically for online purchases—will be powered by... Read More...

Sen. Menendez introduces bill to strengthen consumer protections on prepaid cards

Sen. Robert Menendez (D-N.J.) introduced legislation last week aimed at curbing hidden fees and strengthening consumer financial protections for prepaid cards. The Prepaid Card Consumer Protection Act would require issuers to issue a wallet-sized summary of all fees associated with the card, and the bill would limit the types of fees that can... Read More...

MasterCard expands relationship with Green Dot to allow rePower cardholders to reload

MasterCard and Green Dot recently expanded their partnership to allow MasterCard rePower prepaid cardholders to reload their cards using Walmart’s Rapid Reload service. The Rapid Reload service, which uses the Green Dot network, allows cardholders to add funds directly to the card by swiping at any register in participating Walmart stores.... Read More...

MasterCard partners with Rogers Communications to support prepaid program

MasterCard announced on Thursday that it has signed an agreement with Rogers Communications to provide support for its prepaid MasterCard available with the newly launched Rogers suretap wallet, which is supported by the MasterCard network. The suretap wallet allows customers to pay at the register using contactless technology. “MasterCard... Read More...

Nakumatt Holdings launches Nakumatt Global Prepaid MasterCard

East African retail chain Nakumatt Holdings Ltd. launched on Wednesday the Nakumatt Global Prepaid MasterCard in partnership with Diamond Trust Bank and Kenya Commercial Bank. The new card, which is EMV-compliant, replaces Nakumatt’s Cybercash loyalty smartcard and provides a number of additional security features. Existing smartcard... Read More...

WU, Lottomatica, MasterCard launch My WU reloadable prepaid card in Italy

Western Union, Lottomatica and MasterCard announced on Wednesday the launch of My WU reloadable prepaid cards in Italy that is designed to serve over four million registered migrant workers in the country. The cards will be available at 15,000 Lottomatica Carta Lis locations in Italy and online. Customers will have the option to reload their... Read More...

Prepaid Financial cardholders able to load cash from online Ukash portal

Prepaid Financial Services announced on Tuesday that cardholders and partners in the U.K. and Europe will have the ability to load their prepaid card directly from the online portal using Ukash, a global e-money service. Ukash allows shoppers to spend cash securely, eliminating the need to input personal financial information. Codes can be... Read More...

NAFCU’s Hunt: Credit unions to face a changing payment industry

Carrie Hunt, the senior vice president of government affairs and general counsel for the National Association of Federal Credit Unions, said in a Wednesday editorial that credit unions will have to adapt to a changing payment industry. Hunt pointed to the July court ruling on debit card swipe fees, in which Judge Richard Leon for the U.S.... Read More...

Vantiv President Royal Cole: CUs should take advantage of prepaid trend

Vantiv President Royal Cole said on Monday that consumers aged 18 to 34 have become increasingly interested in prepaid cards and that credit unions should take advantage of the growing trend. Vantiv is the preferred partner for ATM and debit card processing and credit card processing for the National Association of Federal Credit Unions. One of... Read More...

Global Payout to give Classic Credit customers reloadable MoneyTrac Prepaid cards

Global Payout recently signed an agreement with Classic Credit Systems to supply Classic members with reloadable MoneyTrac Prepaid cards that will allow them to access discounted online purchasing. Classic estimates that it will acquire 10,000 new members each year. The card will allow Classic members access to direct payroll deposit, online... Read More...