Prepaid Card utilize is increasing and that’s perhaps maybe not really a thing that is bad

Prepaid Card utilize is increasing and that’s perhaps maybe not really a thing that is bad

The WSJ states that the card that is prepaid is booming and it is likely to achieve $200 billion in income by 2013. The largest prepaid credit card business, Green Dot Corp., raised $160 million in its IPO final thirty days and it has seen its stock increase by 30 percent since that time. The second-biggest company in the market, NetSpend Holdings Inc., hopes to increase $200 million in its own IPO that is coming. This will be news that is good.

Prepaid cards are utilized as debit cards, using the distinction they are perhaps maybe perhaps not linked to a bank checking account, but are drawing funds from a free account because of the issuing bank. Yet, they may not be charge cards either, since the issuer is certainly not expanding a personal line of credit into the cardholder, that is really buying his / her card’s spending restriction. After the balance can be used up, the card could be re-loaded.

Prepaid cards limit the spending that is cardholder’s the total amount this is certainly pre-loaded from the card. Unlike with charge cards, prepaid credit card issuers try not to offer overdraft protection, which, if triggered, allows cardholders go over their limitation, for a fee. Continue reading “Prepaid Card utilize is increasing and that’s perhaps maybe not really a thing that is bad”