Metavante Processing The Reload Evolution Of Prepaid Cards

On Dec. 4, 2006, the card association issued a news release in which it stated the prepaid load network allows consumers to add funds to eligible re-loadable prepaid cards at participating retail locations. According to the announcement, the service has been introduced at more than 1,550 retail locations nationwide including participating Safeway, Carrs, Dominick's, Genuardi's, Pak 'n Save, Pavilions, Randalls, Vons and Tom Thumb stores.

Processing reload transactions allows Metavante to help prepaid card issuers, such as financial institutions, realize the full potential of the checking account alternative that enables electronic payment card transactions for the un- and under-banked population. As Metavante helps make it easier for cardholders to reload eligible prepaid cards at convenient retail locations, a financial institution can benefit from increased card use, promote its brand with un- and under-banked consumers to potentially develop a traditional banking relationship, and gain wallet-share of a consumer otherwise out of reach.

"Without convenient reload, prepaid cards have largely been disposable, which limits their ability to act as a full-service alternative to a checking account and the accompanying payment cards," said Frank D'Angelo, group president, Metavante Payment Solutions. "Marrying expedient reload to prepaid cards creates the opportunity for people without a traditional banking relationship to carry a full-fledged payment card that's arguably as easy to reload as a checking account."

According to a recent Celent payments industry analyst report: "There are an estimated 14 million un-banked households in the U.S...and (prepaid debit) holds value because it stands to capture segments of the market other electronic payments (credit and debit) could not otherwise touch. This is particularly the case among the un-banked and youth populations that have limited access to such accounts." (1)

"Every year card-based payments chip away at the market share of cash and checks and the advent of online shopping and electronic payments has accelerated that trend. By supporting an easier way to reload prepaid cards, Metavante helps open the world of online transactions to consumers such as teens, who often have disposable income to spend," added D'Angelo. "Metavante offers the most comprehensive suite of payment solutions and as evidenced by our support of prepaid reload, we continue to provide and support the newest payment technologies."