Linkedin - Prepaid Cards Think Tank

The Prepaid Cards Think Tank is intended to act as a meeting place for all stakeholders along the Prepaid Cards value chain to network and discuss hot industry topics. Expected member types: Issuers, Acquirers, Processors, BIN sponsors, Programme / Product management, consultants, schemes etc Topics of current discussion: - Maturity of prepaid products in different countries and segments (consumer, government, commercial) - The economics of prepaid cards.

PrePaid Bloggers Wanted!

We are looking for two article writers for The PrePaid Market News and Trends Blog.

Can you contribute twice weekly on innovation, trends, news and reviews within the marketplace of prepaid.

If you feel you fit this exciting opportunity then please drop an email to ferry79 (at) gmail.com

Regards

Nathan
PrePaidMarket.blogspot.com

Will prepaid cards keep the fraudsters at bay?

Great article from the telegraph,
here

Video - MCash, Mobile Money Transfer with Prepaid

Altair Deliver to Human Resources Co.

The card programme will perform a dual function, enabling employers to pay directly on to the NorthgateArinso Essential Prepaid MasterCard and to support compliance with immigration legislation.

With over 20 million employees administered worldwide by NorthgateArinso, being able to offer the Essential Prepaid MasterCard will solve a massive logistical challenge at pay day. Foreign seasonal workers will benefit from the card, as well as employees migrating to the United Kingdom. As cards will only be issued to employees that can prove they have a valid work permit, employers will be encouraged to carry out 'right to work checks' on foreign workers.

By providing employees with a prepaid card, NorthgateArinso is able to load employee's wages within minutes, efficiently and cost effectively. And since no credit history is required when issuing a prepaid card, the Essential Prepaid MasterCard will also be available to UK residents with poor credit ratings.

Altair CEO, Lee Britton said, "We're delighted to deliver this programme for NorthgateArinso, a distinguished leader in global Human Resources software and services, which already offers innovative HR business solutions to employers which include 20% of Global Fortune 500 companies and many Public Sector organisations. Great care was taken by Altair to ensure that the card programme matched the needs of NorthgateArinso, its clients and clients' employees. Above all, we aimed to ensure that the prepaid card programme was easy to implement for their existing payroll services.

"The result is the Essential Prepaid Card, which provides a quick fund distribution method to help streamline the payroll administration processes, reduce the associated costs and time-consuming paperwork."

Due to the costs associated with processing cash and cheque payments, the Essential Card provides a more cost effective solution for employers, and is also less of an administrative burden.

Employees receive the funds on an Essential Card rather than having to cash a cheque and it gives them access to shopping on the Internet or through the traditional retail environment. Employees using the card receive their salaries on the same day as other colleagues and the card also provides a secure alternative to storing cash. For the non-banked, this solution removes the inconvenience and cost of exchanging cheques for cash, whilst providing the benefits of a Debit Card such as access to the online world of payments.

"NorthgateArinso continues to invest in innovation to lead the market through smarter processes and more efficient technology, supporting key HR areas like workforce administration and payroll," said Malcolm Aldis, Managing director at NorthgateArinso. "The Essential Prepaid MasterCard is a prime example of this innovation and we believe the prepaid card solution will hugely benefit our clients and their staff.

Video - Gift Card Scams

RBS WorldPay - Fraud Report

RBS WorldPay belatedly admitted last week that hackers broke into its systems.

The attack against the electronic payment services firm leaves to to 1.5 million payroll and gift card holders in the US at risk of fraud. Up to 1.1 million social security records were also exposed as a result of the breach.

The affected pre-paid cards include payroll cards and open-loop gift cards. PINs for all PIN-enabled cards are being reset as a precaution. RBS WorldPay has pledged to make sure its customers are not left out of pocket as a result of any fraud stemming from the attack. The firm is also offering 12 months complimentary membership to a credit monitoring service to those whose personal information was exposed as a result of the breach.

RBS WorldPay notified law enforcement and regulators about the attack on 10 November but waited until 23 December before publishing advice to potentially affected customers. The timing of its announcement raises suspicions that the firm is releasing bad news at a time when it is likely to go largely unnoticed.

The attack has been linked to the fraudulent misuse of 100 payroll cards, all of which have since been deactivated.

Details of the attack itself, much less who might have pulled it off, remain sketchy. RBS WorldPay has pledged to improve its security defences to prevent similar attacks in future.

HorizonPlus Prepaid MasterCard Payroll card program

Toronto based Peopledge, a full service Human
Resources, Benefits and Payroll company announced the addition of the
HorizonPlus Prepaid MasterCard Payroll card program to their existing line of
payroll solutions. "The HorizonPlus Prepaid MasterCard Payroll program allows
our clients' employees to have all or a portion of their pay loaded directly
to their personalized prepaid MasterCard card" explains Peopledge President &
CEO, John Cummings.
   "Because there is no credit check required, it's great for clients with
young employees." adds Cummings. "In many cases this may be their first
opportunity to enjoy the benefits that a major credit card has to offer."
   "The HorizonPlus Prepaid MasterCard Payroll card program is easy to
implement and the costs are minimal, comparable to those associated with a
regular checking account." notes Gerry Serratore, Vice President of Marketing,
for People Payment Solutions, the prepaid card services division of Peoples
Trust, who together with InComm Canada have established and operate the
HorizonPlus Payroll MasterCard program.
   The program is optional for employees and they can choose to have some,
or all, of their payroll posted electronically to their personal MasterCard
card. The process is simple and secure - funds are transferred to the card via
the standard direct credit process or by file transfer to a secure web
browser. Once funds are loaded, the employees receive a customized update and
have immediate access to them no matter where they may be on payday. Funds are
100% secure and held in trust for the Cardholders.

   The HorizonPlus prepaid MasterCard card is accepted at any of the over 25
million merchant locations that accept MasterCard electronically - including
phone and Internet purchases. It can also be used to withdraw cash at any ATM
that displays the Cirrus(R) Acceptance Mark.
   "We're pleased to work with industry innovators such as Peopledge and
Peoples Trust to deliver business applications that leverage the prestige and
versatility of the MasterCard global brand." Notes Stefan Grammenz, VP Key
Account Management with MasterCard Canada.

JP Morgan - Weapons for Prepaid Card Scheme

The gun buy back programmes were sponsored by local law enforcement officials who offered people pre-paid debit cards for working guns, no questions asked.

Those who handed over working guns at community churches and other turn-in sites in the two cities were given JPMorgan pre-paid debit cards which can be used at ATMs and the point of sale.

Police in Chicago have collected more than 6800 firearms during the city's "Don't Kill a Dream, Save a Life" gun turn-in programme. People who turned in firearms were given $100 JPMorgan pre-paid debit cards for weapons and $10 cards for ball bearing guns, air rifles and replica guns.

A separate programme sponsored by the New York Police Department and the Brooklyn district attorney's office netted almost 700 guns. People who dropped off guns received a $200 pre-paid debit card, whilst ball bearing guns and air pistols were exchanged for $20 cards.

In Brooklyn 204 revolvers, 193 pistols, 226 rifles and shotguns and 12 assault weapons were collected, which will be melted down into clothes hangers and used at dry cleaners.

Explaining the use of pre-paid cards for the programmes, Laurie Neill, MD, public sector solutions, JP Morgan, says: "Programme administrators are able to distribute cards on the spot at collection locations and do not have to worry about the additional time, costs and oversight associated with paper cheque distribution. Participants are paid instantly and have immediate access to their funds instead of having to wait for a cheque to arrive in the mail or taking time to cash a cheque."

The Brooklyn and Chicago programmes follow a similar move in Buffalo in June last year which saw more than 800 weapons collected in eight hours in exchange for over $42,000 in pre-paid debit cards.

Vendors get in on action with reloadable MasterCard

2Checkout, a provider of credit card processing services accounts for online merchants reports that nearly 1,800 vendors have selected the reloadable 2CO MasterCard as a payment option over the traditional payment methods.

The service was launched in 2007, as a result of the partnership between 2Checkout and US payment services provider Payoneer. In order to receive the 2Checkout Reloadable MasterCard, vendors must log into their 2Checkout vendor account, open the banking wizard, select the 2Checkout reloadable MasterCard powered by Payoneer, as well as complete the sign-up process for their card.

Payoneer provides payment services which help companies pay their employees using reloadable prepaid MasterCard cards. When individuals visit the company's website and apply for a reloadable prepaid card via Payoneer, the latter's infrastructure uses PCPrint to identify details on the approved cardholder's computer during registration and activation.

Ryanair Launch Prepaid Card in UK

Budget airline Ryanair is rolling out a new branded prepaid card, entitling users up to four free flights with the carrier. It is claimed that this is the largest multi-brand prepaid programme ever launched in the UK.

The Ryanair MasterCard Prepaid Card, created in partnership with pre-pay specialist M-Cube, offers users a range of discounts and benefits, including special deals with brands such as Ticketmaster, Carphone Warehouse, HMV and Marks & Spencer.

Video - Youth Prepaid Cards

Cambridge Credit Counseling representative Thom Fox interviewed by local ABC affiliate regarding prepaid credit cards for youth.


Cambridge Credit: Pre-Paid Credit Cards for Youth - More free videos are here

As credit markets tighten and the economy hiccups, more Americans are using prepaid Visa and MasterCard debit cards to help control spending and reduce their reliance on credit, a trend that helped Houston's PreCash be ranked 24th on Deloitte's prestigious Technology Fast 50 Program for Texas. In the last year alone, the number of prepaid debit cards placed by PreCash grew 600 percent.

According to the Federal Reserve Bank, total US Consumer debt (excluding mortgage loans) totaled $2.577 trillion at the end of August 2008. With the receding economy, many Americans want to cut back. Prepaid debit cards give people greater access to services than cash without the risks of overdraft fees or increased debt.

"With credit harder to get, people need alternative ways to spend, but in today's hi-tech world cash doesn't always cut it," said John Chaney, Chairman and CEO of PreCash, Inc. "Prepaid debit cards, like our Vision card, help cash-paying consumers access financial services they otherwise wouldn't be able to use. Many consumers use prepaid debit cards to manage finances while still being able to pay bills online; reserve rental cars or airline tickets; pay for gas at the pump and more."

Prepaid cards are similar to traditional debit and credit cards. The most common are network branded prepaid cards. These are branded like most credit and debit cards, typically MasterCard or Visa, and they are issued by regulating banks or other regulated organizations.

The big difference between a prepaid card and traditional credit and debit cards is that you don't need a bank account, or a line of credit to get one. All you need is cash, which is loaded onto the card at retail locations or via direct deposit.

Online Usage and Awareness Survey for UK Prepaid Market

LONDON, Oct 02, 2008 (BUSINESS WIRE) -- Research commissioned by thought-leading modern media publishing company, VRL KnowledgeBank, reveals groundbreaking consumer research suggesting that gift cards will be the present of the future.

Nearly 60 percent of respondents have purchased a gift card for someone within the last year, with 30 percent of these occurring in the last six months, reinforcing the likelihood of Christmas stockings being packed with cards. This research is the first of its kind and offers a unique insight into the buying behaviour of over 3,000 consumers and their overall awareness of this fast growing market.

The consumer omnibus research entitled: UK Prepaid Cards -- Usage and Awareness was conducted online by British Market Research Bureau (BMRB) between 24th July and 10th August 2008.

Key facts include:

-- 76 percent of people are aware of gift cards

-- Respondents that had received them were twice as likely to buy one, either for themselves or as a gift

-- Over 50 percent that had used a prepaid card were likely to reload this card, especially if they had purchased prepaid cards within the last six months

-- Nearly twice as many men as women and this figure is more concentrated on the younger generation (16-34 year old age group) rather than older people (45-64 age group) which was significantly lower at 7--8 percent.

-- Nearly 50 percent of consumers use prepaid cards for Internet purchases, demonstrating that security is front-of-mind where online shopping is concerned.

-- Other uses focused on helping consumers to budget, spending or transferring money abroad and many parents were buying teen or youth cards for their children.

-- Costs for cards do not appear to be a barrier - in fact just under half of the respondents believe there are no costs or less than GBP1 in fees per month attached to prepaid cards.

In other geographies such as the US, the prepaid market has really exploded and there are entire shops dedicated to prepaid gift cards with shoppers visiting these outlets to purchase their friends and relatives favourite brands. The first of its type, VRL's research reveals that the UK market looks set to move in this direction.

SOURCE: VRL KnowledgeBank

C8 Consulting Ltd for VRL KnowledgeBank
Paula Elliot, 0118-900-1132
paula@c8cpmsulting.co.uk

UkashOut Gaming Card

UkashOut is an innovative and straightforward way for operators like Chilipoker to payout to their customers and allows winning players to access their funds in a quick and easy way, regardless of how they were originally deposited (prepaid, credit/debit card, etc). The introduction of UkashOut marks the end of costly cheques, bank transfers and other traditional payout methods still used today by gaming sites.

UkashOut card is issued by gaming operators directly to customers who then select the value they want to see withdrawn from their gaming account and the amount gets credited to their card. The cash is available for withdrawal almost immediately at an ATM or for use anywhere MasterCard is accepted, both offline and online worldwide.

As the first operator in the market to offer the UkashOut solution, Chilipoker is initially issuing it to its VIP customers free of charge. By adopting UkashOut, Chilipoker -which targets the high rollers in 30 countries- aims to enhance its customer service and expects to attract new customers and increase its retention rate with the existing base.

To the operators' advantage, UkashOut uses the existing Ukash integration, which cuts down on resources and time, making the adoption process easier by using a simple technical interface and a managed service. Introducing the card also makes it a marketing advantage for operators to boost customer loyalty and drive new revenue streams.

After its roll-out in the gaming sector, UkashOut is expected to be adopted by other online operators looking for efficient pay-out facilities.

Alex Dreyfus, Chilipoker CEO, said: "Our company's brand has been growing among thousands of VIP players, thanks in particular to our ability to offer $16 million dollars in tournaments every month along with premium services like personalized reward programs, a store, plus free statistical tools and customer assistance.

For a long time we have wanted to offer a debit card that allows customers to withdraw and deposit cash directly from a Chilipoker account. This project has finally come to fruition thanks to Ukash and Mastercard. We are happy to announce the release of this card which is the first of its kind worldwide, and for which all the fees are covered by Chilipoker."

Mark Chirnside, CEO of Ukash commented: "As the company which introduced online cash payments in Europe, we are pleased to bring UkashOut to the market and to see it so eagerly adopted by one of the strongest online gaming providers. Chilipoker, like many other operators, is realising the value of finding methods to pay out securely, easily and quickly and UkashOut offers the whole package."

Consumer Reaction- RBS & Paypal Prepaid Card

Found this comment on the consumer reaction group website in the UK regarding the new paypal prepaid card, educate, educate and educate the consumer.

"The New PayPal TopUp Card seemed like a good idea for anyone with a PayPal Account who is also fed up with banks and/or can't get Credit. It works like a Debit Card (although they won't let you use it everywhere).

You can Top it Up via your PayPal Account, so it looked like a nice and convenient way to transfer a PayPal Balance into a Balance on a Debit-like Card to use almost same day.

They claim No Credit Checks, as it's just a TopUp Card. All looked too good to be true.
However, close inspection of their Terms and Conditions small print was less encouraging, as buried in there they had added a clause requiring anyone that applies for this PayPal TopUp Card to give their Consent to share the Applicant's Data with those nice upstanding people over at the Credit Reference Agencies.

Now there's a surprise. A TopUp Card that you have to add funds to before you can spend, and yet they want to harvest and sell your Data to the CRAs! There's No Credit being offered, and they even say No Credit Checks, so why do they need this Consent then?

I had a little go at them about that, but PayPal didn't want to remove that aspect from their Terms. So, with some considerable reservations, I applied for one on-line...

...and I was declined!

The process was automated, but felt like a Credit Check was being carried out before the Message came back that I was not the sort of punter they wanted.

I complained to PayPal, asking if they could let me know who to send my Data Protection Act 1998 Data Subject Access Request to, as I would jolly well like to get to the bottom of why, exactly, I had been turned own.

PayPal went all soft, and passed the blame straight on to, you've guessed it, the Royal Bank of Scotland. PayPal want me to ask RBS why I was declined. PayPal say it's not their fault, please don't hassle them, hassle RBS instead. Buck passing came easily for PayPal without any hesitation.

Time to S.A.R - (Subject Access Request) the RBS I think, and then complain to the Financial Ombudsman Service and also the Advertising Standards Agency. It looks like False Advertising to get people to Sign Up for this TopUp Card without making it clear the Application involves a good old search through your Data at the CRAs.

This is yet another example of the Debt Industry getting their fingers into yet another pie for no good reason. Another example of yet more Data being handed to the CRAs that they simply do not need. So, take care folks, the PayPal TopUp Card does appear to be carrying out Credit Checks despite their claims that they are not required"

Cheers,
BRW

Another reaction to that post as follows:

"I was amazed today to be rufused this card! my credit is good I have 2 credit cards which are paid monthly when used.

My only worry is will this go on my credit history I was refused by paypal ?

I wish I had not hit the apply button now I had a gutt feeling about it but had so many emails from paypal about this card I thought ide apply. To describe how I feel now in a word is sick, I feel as if they want to screw our credit I am also thinking of shutting down my paypal account and ebay account"

Future of Prepaid Card Lies with Consumers in Debt

As consumers struggle with thousands of pounds of credit card debt, the pre-paid card is coming into its own.

Newcastle Building Society is predicting that debt management will account for 10% of pre-paid card transactions by 2012.

Consumer debt now stands at £1.44 trillion and many individuals are struggling to meet even the minimum monthly repayments on their credit cards. Newcastle Building Society Card Solutions, one of the premier providers of MasterCard prepaid cards in the UK and Europe, predicts a 10% growth in the number of prepaid cards used by people with individual voluntary arrangements (IVAs) by 2012.

By this time next year the total number of issued pre-paid cards in the UK is estimated to reach over 10.8 million and the total value spent on these cards is expected to exceed £697 million.

As the market grows over the next four years, Newcastle Building Society Card Solutions, which currently has 500,000 cards in regular monthly use, predicts exceptional growth areas for both debt management and moneyshare cards for migrant workers by 2012.

At the moment some 70% of pre-paid cards are used extensively for gifts and by parents with student offspring who charge the card with money rather than let their offspring run up huge credit card debts. It is an efficient way for both students and parents to keep control of spending. The next largest group of users are those who take out the cards for personal use, either to limit spending, or because they are no longer eligible for credit cards because of default or arrears.

By 2012 Newcastle is predicting that those who use prepaid cards for gifts will shrink to 40% while moneyshare, travel and other categories, currently small, will grow substantially.

The average debt accrued by those signing up for IVAs reached £47,000 in August and is expected to grow as the credit crunch continues.

(care of Lorna Bourke CityWire)

Carphone Warehouse - Mobile Prepay Card

British mobile phone retailer Carphone Warehouse is collaborating with Monitise plc and Metavente Technologies Ltd. to introduce a mobile prepay card.

Managed directly from the mobile phone, the card will let shoppers by in retail stores worldwide.

“The launch of the Carphone Warehouse prepay card will change the way consumers shop and manage their money, while also making online and telephone shopping more convenient and secure,” said Alastair Lukies, CEO of Monitise, in a statement from London.

The news comes soon after Best Buy Co. and Carphone agreed to form a new venture that would next year introduce Best Buy stores and Web sites in Europe. Per the terms of the deal, Best Buy will buy a 50 percent stake in Carphone for $2.1 billion.

Carphone has more than 760 stores across Britain.

With its prepay card effort, Carphone will rely on Metavente for its prepaid and licensed software services and Monitise for the Monilink mobile banking and payments network.

The service will cover mobile management just in the way customers of British banks manage their finances while on the go.

In essence, a secure application on the mobile device will let customers top up their cards directly from their bank account and also monitor recent transaction activity.

Consumers will also be able to move money on and off the prepay card.

Prepay cards work in the same way as a prepaid phone: consumers can only spend up to value of the credit on the card at the time.

Metavente, whose headquarters are in Milwaukee, processes more than 80 million payment cards for consumers in the United States through its distribution partners.

MasterCard and Payzone Release rePower in Europe

MasterCard has announced an alliance with Payzone plc to deliver a point-of-sale reload service for MasterCard® and Maestro® prepaid cards in Europe. The service, branded MasterCard® rePower™, will enable cardholders to reload their prepaid cards with cash at participating merchants.

The first prepaid programmes to benefit from MasterCard rePower will be issued in the UK before spring 2009 by Newcastle Building Society, in association with Altair Financial Services International Plc.

The Altair processing platform provides a payment option for clients across various sectors, including consumer focused retail and travel prepaid cards, corporate targeted focused prepaid cards for payroll or insurance claim payouts and prepaid government cards used to distribute payments to beneficiaries.

Linkedin - People in Prepay Group

People in Prepay is for people around the world wanting to exploit the potential of prepay through knowledge sharing, networking and supporting each other.

Please visit here to join the Linkedin people in prepay group.