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A Phoenix-area company called Better ATM Services Inc. thinks it has a better idea for merchandising prepaid cards: sell them directly at ATMs, with cards dispensed through the same slot that dispenses cash. Founded in 2005, the Mesa, Ariz.-based firm is now implementing its ideas at five local restaurants. Thomas …
Read More »Discover Expands Its Gift Card Franchise Through a Big Mall Operator
Discover Financial Services LLC for the first time is selling its gift card to non-Discover customers and at retail locations through a new agreement with Chicago-based General Growth Properties Inc., the nation's second-largest regional shopping mall developer and manager. Under the program, consumers will be able to buy Discover gift …
Read More »Visa Gets a Boost for Prepaid Partial Authorization from Shell
Nearly 4,000 gasoline stations branded by Shell Oil Co. have so far adopted a technical change from Visa USA that allows merchants to cut off delivery of a product on a prepaid card transaction as soon as the funds in the account are exhausted. Shell plans to roll out the …
Read More »Why a Small Bank Sees Big Things in College Prepaid Programs
A small Oklahoma banking company is looking to an ambitious university prepaid card deployment, which also involves contactless payment, to help it diversify a prepaid service it offers primarily to the Hispanic population. Central National Bank, Enid, Okla., is issuing PIN-based prepaid debit cards to the 10,300 students, faculty, and …
Read More »Cap One Extends Debit Reach with $700 Million NetSpend Deal
Capital One Financial Corp.’s decision to buy prepaid card processor NetSpend Corp. comes at a time when the network-branded prepaid card market is rapidly expanding and close on the heels of Cap One’s market-changing move into debit cards that can be held by consumers with accounts at any bank (Digital …
Read More »Branded Prepaid Growth Is Lapping That of Private Label, Report Says
The two major sides of today's prepaid card industry, branded or general purpose on one side and private label on the other, both still have enormous growth potential, but the branded side has the stronger prospects, according to a new report from Boston-based financial research firm Aite Group LLC. Aite …
Read More »Green Dot Begins to Look Like the Go-To Prepaid Reload Network
The booming popularity of prepaid cards has created opportunities for payments companies far beyond just issuing plastic cards. The reloading of already-issued prepaid cards, for instance, is emerging as a major business. And that means Monrovia, Calif.-based Green Dot Corp.'s 40,000-location reload network is attracting attention from such big companies …
Read More »With an Eye on EFT, Fidelity Picks up eFunds with a $1.8 Billion Bid
The strategic review that payment processor eFunds Corp. disclosed May 9 ended today with the announcement that another processor, Jacksonville, Fla.-based Fidelity National Information Services Inc. (FIS), will buy e-Funds for $1.8 billion in cash. The purchase price of $36.50 per share represents a 5.5% premium over eFunds' Tuesday closing …
Read More »Bill Payment Likely to Be a Key Function of Wal-Mart MoneyCard
Electronic bill payment is a key function Visa USA is expecting holders of the new Wal-Mart MoneyCard prepaid plastic will use the product for. According to Visa, nearly 20% of purchase transactions on its existing reloadable prepaid products are bill payments. The MoneyCard, which is issued by GE Money Bank …
Read More »How TransFirst’s New Boss Sizes up the Processor’s Opportunities
Former First Data Corp. executive John Shlonsky, who took over this week as president and chief executive of TransFirst LLC, says he plans to lead the Dallas-based transaction processor into a wide array of new markets with backing from the company's new owner, private-equity firm Welsh, Carson, Anderson & Stowe. …
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