Virginia House of Delegates bans Prepaid Card Donations

This recent post on Forbes discusses how the Virginia House of Delegates has approved legislation banning the use of prepaid credit cards to make online campaign contributions. The use of prepaid cards allows people to make contributions without extensive identification, and Virginia requires full disclosure on donations. Will we see a trend in other states banning anonymous donations made through prepaid credit cards?

Prepaid reward options

Manage Smarter recently looked at the three different types of prepaid cards that employers can use to reward their employees.

A universal prepaid reward card is open loop and can be used anywhere. However, instead of rewarding themselves, employees may end up spending reward on necessities instead of a reward, which may defeat the purpose.

A multi-merchant card is used for spending at selected stores. It can cater to the personal tastes of the employee.

A single merchant card offers spending in one store, but can also provide access to a wide selection of merchandise that can fit the customers' tastes.

Virginia's Ban on Prepaid Card Donations Clears Panel

Prepaid card donations are a particular hazard in Virginia, reports The Daily Press. The state is one of only five with no limit on campaign contributions; it relies instead on disclosure to hold candidates and donors accountable. The problem with using prepaid cards for donations lies in the anonymity that prepaid cards can offer their owners. Should the prepaid funds be from a foreign investor, this allow anyone to influence the elections in Virginia's government.

The bill being passed through Virginia's government includes:

Ban all gifts to all lawmakers, from the smallest cup of coffee to pro football tickets and hunting junkets that turn up perennially in legislative and lobbyist disclosure reports.

Limit individual contributions to legislative candidates to $1,000 per candidate per election cycle;

Limit contributions to candidates for statewide office such as governor or attorney general to $2,500 per candidate every four-year cycle.

Teenage Usage of Stored Value Cards are on the Rise

A recent article on thisismoney.co.uk discusses how many teenagers from the early age of 11 are beginning to take their own financial independence. Many banks such as HSBC offer cash cards that allow teens to draw money on a specific account outside of normal banking hours. Generally at the age of 11 only savings cards are offered, but as they grow older banks are willing to trust them with debit cards linking them to a simple current account. The younger generation wants to take responsibility in managing their money, it will be interesting to see what the future of banking will hold for teens.

Latest poll results: How is the current economic climate affecting your firm’s spending on the development of prepaid products and services?

The results are in from our latest poll question: How is the current economic climate affecting your firm’s spending on the development of prepaid products and services (including R&D, sales, marketing, etc)?

- My company is not changing its spending plans for 2009 -- 44.44%
- My company is drastically cutting spending (cuts of more than 40%) activity for 2009 -- 22.22%
- My company is curtailing spending (between 1%-40%) for 2009 -- 22.22%
- My company is increasing spending for 2009 -- 11.11%

Do these results surprise you?

Who is the most influential person in prepaid outside the US?

SURVEY
Who’s the most influential person in prepaid outside of the United States?
Please tell Paybefore who you think wields the greatest influence in the prepaid industry outside of the United States.
The top five vote getters will be featured in the Spring 2009 issue of Paybefore Magazine.
Americans and non-Americans working in prepaid outside the United States qualify.
Vote at our Homepage: http://paybefore.com/

There's no such thing as a free lunch...

...but our friends at Paybefore.com are offering a free sample of Paybefore...


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As a member of the Prepaid Card Expo Blog/LinkedIn group, you can sample the value of Paybefore — absolutely free! If you like what you see, then subscribe. A corporate subscription gives everyone in your organization full access to the benefits of Paybefore. If you’re in the prepaid or stored value card business, you need to be reading Paybefore.

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Security Concerns for Canadians Who Used Their Credit Cards in the US in 2008

This morning I came across this post on Canada.com in which they describe that “malicious software” found in Heartland Payment Systems’s operating system may affect the security of Canadian based credit card systems.

Canadians are advised to check their statements for any signs of identity theft and report it immediately. Robert H.B. Baldwin, Jr., Heartland's president and chief financial officer, mentions:

"We understand that this incident may be the result of a widespread global cyber-fraud operation, and we are co-operating closely with the United States Secret Service and Department of Justice."

This breach is already considered the biggest loss of credit-card data since 2007, companies will have to step up their game to ensure consumers safe spending in this downturn economy.

Read the January Prepaid Card Expo Roundup

Here’s your chance to view our monthly newsletter that we send out to our Prepaid Professionals LinkedIn group with the latest updates in the prepaid marketplace. Remember, to join our Prepaid Professionals LinkedIn group and update your email addresses on LinkedIn in order to receive it on an ongoing basis. Enjoy!

http://www.iirusa.com/upload/wysiwyg/Prepaid_January_Newsletter.html

How is the current economic climate affecting your firm’s spending on the development of prepaid products and services?

Every month we will be posting a poll on this blog related to the prepaid card industry. Take a couple of seconds to select your choices on how the economic climate is affecting your firm’s spending. We’ll be posting the results next Monday!

NetSpend and Liberty Tax Service Partner for a Prepaid Card Program

According to this article on The PayPers NetSpend has teamed up with Liberty Tax Service to launch the All-Access Liberty Prepaid Card program.

The program allows consumers to load up their tax refunds onto this prepaid card, and use it for financial transactions at any location where Visa is accepted. The reloadable prepaid card is issued by National Bank.

Des Moines gets prepaid card meters

According to the Des Moines Register, they've adopted new parking meters that accept prepaid SmartCards for payment. The city looks at them as a huge convince for the users by refunding them for unused minutes. It is also a way for the city to save time on collecting quarters, nickels and dimes from meters around the city.

Future of Credit Cards, Bright Outlook for Prepaid

Prepaid cards are seeing a steady growth in use, primarily because they offer no APR or fancy rewards programs. The cards are cash and that's the best thing to use in a tight economy. According to ecommerce-journal.com, prepaid and debit cards may be viewed as ways to avoid interest charges, and private-label cards frequently have loyalty or rewards programs that give users cash or products back. The article outlines the steady decline of credit cards. Check it out and share your thoughts with us on how this will impact the business of prepaid.

Archived TSYS Webinar

If you weren’t able to view the TSYS webinar “The State of the Prepaid Market in Europe” last Thursday, here’s your chance to view it at your own leisure! John Goodale of TSYS discussed which countries are in the lead in terms of readiness as well as offer his insights into prepaid development and its future.

Watch the archive here: https://www1.gotomeeting.com/register/619356298

Altair wins innovation award

The 2008 OSCARDs awared Altair the Best Technology award for their innovative work with the Contactless Prepaid Watch.

Altair CEO Lee Britton had this to say about his award:
“Altair has been at the forefront of contactless prepaid cards since 2007. The ability to offer this product provides a staging point and proving ground for the delivery of further key industry innovations. Contactless non-card form factors are a practical proposition for live consumer programs in a variety of industry sectors that will benefit from increased sales and revenue as a result of the deployment of Contactless Watches. Working with leading industry players such as CardPOS Europe, LAKS and ID Data has allowed us to identify and validate the technology road map for the next generation of innovative, flexible card industry products.”

For more on the award, visit finchannel.com.

Economy is Down, Prepaid Wireless is Up

With the economy in turmoil, individuals and families are looking to save on luxury uses--and this includes wireless service. Instead of suspending their wireless service, many are looking to prepaid wireless phones and plans. These plans can be paid by cash and are only charged on certain days. We've covered the prevalence of prepaid throughout Europe and Asia, maybe it was time that the United States followed suit. Tell us what you think here or on our LinkedIn group.

Time to spend the holiday gift cards

Now that everyone has received their holiday gift cards, what are they going to spend them on? According to a study, done by Archstone Consulting, and detailed here at Manage Smarter, recipients will spend them on necessities, including groceries and gasoline, and small indulgences such as eating out. Spending on gift cards was expected to fall 5%, or $25 billion, in the 2008 holiday season from last year's holiday season.

nFinanse releases new reloadable prepaid debit card

nFinanse has released a new reloadable prepaid debit card called nFinanSe Discover® Network Reloadable Prepaid Card which offers new services that make the upkeep of the prepaid card low. The card has low fees, text message notifications of transactions and balances, and free customer service. The card is available at Winn Dixie and Dollar General stores across the United States. For more, read here.

Free Webinar Tomorrow: The State of the Prepaid Market in Europe

The team at Prepaid Expo Europe has recently put together the free webinar The State of the Prepaid Market in Europe which will take place on Thursday, January 8th from 10:00 AM – 11:00 AM EST. John Goodale, Director of Card Management Solutions, TSYS Global Services, will be presenting on the state of the prepaid market in Euorpe.

Here’s a brief description of the webinar:

The industry press is reporting the expansion of the prepaid market across several diverse and emerging industry sectors and Europe is being heralded as the next big market in terms of prepaid.But is it? What are Europeans really thinking as they watch the route taken by prepaid cards globally...from the gift market to everyday usage.John Goodale of TSYS will discuss the state of the current prepaid market in Europe and offer his insights into its development and future. He will discuss which countries are in the lead in terms of readiness and which countries lag as well as the applications of closed loop versus open loop prepaid and where the logical fits will be in the key European markets.

Be sure to look for more news and web seminars from Prepaid Expo Europe in Vienna, Austria 29 June - 1 July 2009.https://www1.gotomeeting.com/register/619356298

PayByCash Card Revolutionizes Alternate Payments for Web Merchants

WebWire reports that PayByCash Card™ will allow customers who lack credit cards to and other traditional payments systems to pay internet merchants. The PayByCash card is accepted virtually anywhere in the world, merchants can reach a broader demographic including teens, there is no risk of fraudulent reversals for merchants, and the PayByCash Card processes just like a major credit card through the checkout pages.

Kevin Higgins, president of PayByCash mentions:

“The PayByCash Card is the only pre-paid card with truly global reach. It’s a payment vehicle that merchants can safely accept from customers virtually anywhere in the world.”

The PayByCash card is launching later this month.

Prepaid card for Teens

At Credit-Deal.com, they recently highlighted the Wired prepaid Visa card. A great card for teens 18 and over, this card allows both the parent and the user control over the money in the account without the user going into debt.

Click here to find out more.

2009 could be a big year for prepaid cards

At CreditCards.com, they predict nine things that could happen in the industry in 2009. With the current credit crisis, they predict that prepaid cards could step in and fill the gap for consumers. It is a way for the consumers with poor credit histories to maintain a card. They also predict that banks will become very creative in this new economic environment.

...the possibility of short-term credit card products, which would potentially carry terms for just one year. After that set time is up, banks would then review terms associated with the card in order to price them again based on the individual cardholder's payment behavior.

For more predictions about credit this year, read here.