Prepaid Card utilize is increasing which is maybe not a thing that is bad

Prepaid Card utilize is increasing which is maybe not a thing that is bad

The WSJ states that the prepaid credit card company is booming and it is expected to achieve $200 billion in income by 2013. The largest card that is prepaid, Green Dot Corp., raised $160 million with its IPO final thirty days and contains seen its stock rise by 30 % ever since then. The second-biggest business on the market, NetSpend Holdings Inc., hopes to boost $200 million with its very very own IPO that is coming. That is news that is good.

Prepaid cards are utilized as debit cards, with all the huge difference that they are perhaps perhaps not connected to a bank checking account, but are drawing funds from a merchant account with all the bank that is issuing. Yet, they’re not charge cards either, considering that the issuer isn’t expanding a line of credit towards the cardholder, who’s really buying his / her card’s spending restriction. Continue reading “Prepaid Card utilize is increasing which is maybe not a thing that is bad”