TMG Expands Credit Union Prepaid Offering with Reloadable Cards
Des Moines-based TMG (The Members Group) has announced it is expanding its prepaid product line with the availability of general purpose reloadable cards to its credit union clients. "The reloadable card service, called ATIRAreload, allows cardholders (and other authorized users) to load money onto the credit union-branded card, which can be used for purchases almost anywhere Visa Debit cards are accepted. The cards also function as ATM cards, giving cardholders instant access to cash."
Cardholders can load cash onto their reloadable cards in their CU branch, online or via direct deposit. They may also transfer funds from existing checking, savings or credit accounts. The direct deposit feature also allows card holders to create a self-directed payroll card, which means the cardholder initiates the direct deposit at the employer just like any other debit card.
In addition, cardholders will soon be able to visit any Visa ReadyLink reload network location, which offers another option for cardholders to load cash onto the card.
"We view the ATIRAreload card product as a mechanism for credit unions to gain new members, especially from the teen, travel and underserved markets," said Jeff Falk, TMG director of product development.
According to Falk, teens and their parents are a target market for a reloadable card program because of the education and security provided by the card. In addition to teaching financial responsibility by forcing a teen to stick to a budget, the card provides an alternative to the threat of overdraft fees.
Similarly, the travel market is attracted to reloadable cards for security purposes. If lost or stolen, only the loaded funds are exposed and the cardholder's identity is not vulnerable. Convenience is another benefit to travelers whose debit cards and travelers checks may not be accepted widely at their destination.
The underserved market is another key demographic for credit unions marketing reloadable cards. Whether unable or unwilling to qualify for a traditional credit or debit card, this group still desires the convenience and security offered by plastic transactions.
In addition, ATIRAreload allows for direct deposit and soon, bill payment, giving the underserved market an economical alternative to check cashers and money orders.
"The ATIRAreload card helps CUs deliver a value-added product to markets hungry for alternatives, creating an opportunity for growth," says Falk.
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