Credit Unions can offer their members a suite of prepaid products that can provide convenient gifting and financial tools and make credit unions competitive with prepaid card malls at retailers, Denise Stevens of PSCU wirtes in CU Insight.
The credit union initially offered PSCU’s prepaid gift and general, travel and student reloadable programs to members and then added their prepaid reloadable EMV program in 2013 to meet the needs of members traveling outside the U.S. The prepaid cards also satisfied a need for some of the credit union’s members who were concerned about potential fraud when making purchases online. In this situation, the prepaid reloadable cards have served as an alternate and lower risk payment method.
The piece gives examples of two credit unions who began offering prepaid cards. While it is designed to market PSCU, it makes important points about how financial institutions can integrate prepaid cards into their suite of products. The question is whether or not the products will still be viable once the CFPB releases its final prepaid rules this week.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group
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