In today’s retail environment, prepaid fraud is becoming more of a growing concern for consumers, card issuers, distributors and third-party retail locations alike. (PBU V4, i12)

Trusko opens up about the NBPCA’s recent activities to shape the legislative and regulatory environment for prepaid. (PBU V4, i12)

General purpose reloadable (GPR) card and reload network powerhouse Green Dot Corp. went public last week with an initial public offering of more than 4.5 million shares estimated at $164 million. (PBU V4, i12)

NetSpend Holdings Inc., a provider of general purpose reloadable (GPR) prepaid and payroll cards, filed for an initial public offering on July 15 estimated at $200 million. (PBU V4, i12)

Turning payments from a cost center into a revenue generator—that’s the goal of Wave Crest Holdings Limited, a global electronic payments provider, which earlier this month raised $8.5 million in Series B funding. (PBU V4, i12)

The Global Prepaid Exchange—which offers business connections, intelligence and support—in forums worldwide focused on “staying ahead of the prepaid pack” at its gift and prepaid retreat in Toronto earlier this month. (PBU V4, i12)

While recent regulatory efforts have heightened sensitivity on the issue of authenticating the identity of prospective prepaid card customers, industry professionals have long been aware that knowing with whom they are doing business is simply smart business. (PBU V4, i12)

Loraine DeBonis recently was named editor-in-chief at Paybefore, a media company comprising multiple publications devoted to covering all aspects of the prepaid industry.

Jim Accordino recently joined Meta Payment Systems, serving as senior vice president, with responsibilities for client services and client development. (PBU: v4, i12)

Catalina Card Services, Inc., an Irvine, Calif.-based prepaid card provider and processor recently announced that Matt Montes, the founder and former COO of AccountNow, Inc. has joined Catalina as president. (PBU v4, i12)

American Express Company has elected Ted Leonsis to its board of directors and Daniel H. Schulman will join the company next month as group president – enterprise growth. (PBU: v4, i12)

Last week, the Senate passed the Dodd-Frank Restoring American Financial Stability Act (US HR 4173) by a vote of 60-39.

Atlanta-based processor First Data and ice cream shop Cold Stone Creamery hope to turn the virtual gifting phenomenon on its head by enabling Facebook users to send tangible gifts in the virtual world. (PBU V4, i11)

The Financial Crimes Enforcement Network (FinCEN) proposed new rules that would amend current Bank Secrecy Act (BSA) regulations for money services businesses (MSBs). (PBU V4, i11)

Megan Bramlette examines Facebook’s entry into the payments world and how the virtual economy could become a real growth area for the legacy payments industry. (PBU V4, i11)

MasterCard is boosting its marketing and education efforts around prepaid and its target communities are taking notice. (PBU V4, i11)

In May 2009, an early morning email warned Joi Sheffield of an amendment to Senate Bill 414. (PBU V4, i11)

Although using social media is still in the early stages, consumer-based prepaid businesses are starting to embrace it to deliver positive messages about their brands and their products. (PBU V4, i11)

Zong, a mobile payment service used by online gaming and social networking Websites, announced it has appointed Elena Krasnoperova as vice president, analytics and fraud management; Stephane Kasriel as vice president, sales and business development; Sandy Taylor as vice president, finance; and Tim Armandpour as vice president, engineering. (PBU: v4, i11)

TopGrading Solutions, a Port St. Lucie, Fla.-based executive search firm, announced recently that Larry Lebofsky has been promoted to an equity partner effective July 1, 2010. (PBU: v4, i11)

Grupo Setorial de Pré-Pagos, the Brazilian chapter of the Prepaid International Forum, named economist Boanerges Ramos Freire president of the chapter. (PBU: v4, i11)

Online Resources Corporation, a provider of online financial services, announced that veteran technology executive Joseph L. Cowan has been named president and CEO of the company. (PBU: v4, i11)

Consorteum Holdings Inc., a Las Vegas-based payments technology provider, recently announced it has named Bill Smethurst as chief financial officer. (PBU: v4, i11)

Last fall two European companies specializing in prepaid  vouchers for online shopping came west to North America.

As a high-growth industry for many years, prepaid largely has enjoyed productive capital-raising efforts.

Mango Financial, Inc. wants to “wow” underbanked consumers with financial services and create a brand that can inspire loyalty akin to Apple. (PBU V4, i10)

Whether or not you think it’s a good idea, a small but significant piece of legislation is close to becoming law. (PBU V4, i10)

If the record attendance at last week’s 5th Underbanked Financial Services Forum is any indication, the number and type of organizations coming together to serve the underbanked market are expanding. (PBU V4, i10)

Green Dot has issued 2.2 million shares of Class A common stock to Walmart, the company’s largest retail partner, according to an amended SEC filing. (PBU V4, i10)

During last week’s opening sessions at Prepaid 2010 in London, speakers emphasized the growth potential for prepaid throughout Europe and the intersection opportunities for prepaid and mobile. (PBU V4, i10)

The U.S. House of Representatives last week approved a measure that will extend the deadline for compliance with gift card-related provisions of the CARD Act. (PBU V4, i10)

Cardlytics, an Atlanta-based company that extends promotional offers through the online account management systems of debit and prepaid card holders, announced that Gordon Caldwell has joined its team as regional account executive in Nashville. (PBU: v4, i10)

FIS announced that Brad Potter has been named senior vice president of the Jacksonville, Fla.-based payments processor’s EFT solutions division. (PBU: v4, i10)

JPMorgan Chase announced it has hired payments industry veteran Jack Stephenson as director of mobile, ecommerce and payments to expand how the firm serves clients from consumers to businesses. (PBY: v4, i10)

The Network Branded Prepaid Card Association named Jon Palmer, CEO of FSV Payment Systems, as its new chairman of the board. (PBU: v4, i10)

Stewart A. Stockdale is modernizing Western Union Americas’ legacy business model with new products, while leveraging existing distribution channels and adding new ones. (PBU V4, i10)

The Financial Crimes Enforcement Network (FinCEN) issued its long-awaited notice of proposed rulemaking (NPRM), proposing to revise the Bank Secrecy Act (BSA) regulations applicable to Money Services Businesses (MSBs) with regard to stored value. FinCEN was originally expected to issue its NPRM in February, 2010.

Although the reconciliation process between the U.S. Senate and House financial reform bills officially has not yet begun, industry members and media outlets have been taking on a reconciliation process of their own. (PBL)

The Durbin Amendment appeared to take much of the industry by surprise, as much by its speed as by the margin by which it passed.

It has been 10 years since prepaid cards for teenagers hit mainstream consumers.(PBU V4, i9)

Payments has hit its toughest political patch in years. The current battle is embodied in HR 4552, the Benefit Card Fairness Act of 2010 pending in Congress. (PBU V4, i9)

Redwood, Calif.-based mobile payments company Obopay launched a new suite of products last month called Mobile Money for Banks, designed to help financial institutions tap the increasing consumer demand for mobile payments. (PBU V4, i9)

Atlanta-based processor First Data made several change to its leadership and prepaid teams. (PBU: v4, i9)

Mercator Advisory Group announced the addition of Ben Jackson as senior analyst to its Prepaid Advisory Service. (PBU: v4, i9)

Transact Network, a European e-money issuer and prepaid card provider, announced that Colin Greaves has been named CEO and a member of the board of directors. (PBU: v4, i9)

Atlanta-based third-party prepaid product distributor InComm has acquired Coinstar’s E-Payment Services division, which operates gift card malls for retailers in the U.S. and the U.K., the companies announced on May 26. (PBU V4, i9)

Travelers who fueled up with a Walmart MoneyCard prepaid Visa card on their way to the beach or the mountains this Memorial Day weekend got a little something in return. (PBU V4, i9)

With dozens of players and counting, the gift card exchange Website arena is expanding rapidly. (PBU V4, i9)

With regulation as an underlying industry dynamic and central component of change, 2010 undoubtedly will be a big year for prepaid. (PBU V4, i8)

The business that has operated since 1997 as American Express Incentive Services, LLC (AEIS) has a new name. (PBU V4, i8)

St. Petersburg, Fla.-based credit union service organization PSCU Financial Services elected four board members to three-year terms. (PBU: v4, i8)

Increasingly, online games and activities are being played on social networking platforms such as Facebook, rather than on dedicated Websites. (PBU V4, i8)

Most recently, many of the top players in prepaid from around the world met at Prepaid Expo Europe—an event in Brussels last week. (PBU V4, i8)

Early in his career, Ralph Calvano dealt with the unexpected. (PBU V4, i8)

Scott Grimes and Lynne Laube founded Atlanta-based Cardlytics after developing prepaid and debit products at Capital One. (PBU V4, i8)

How can prepaid be profitable? That central question has long troubled many verticals in the thin-margin prepaid card industry.

Paybefore asks industry executives for their views on who the next game changers are and what expectations they have for holiday gift card sales.

In a May 2008 report commissioned by MasterCard Worldwide, PSE Consulting and Boston Consulting Group estimated the total spend on prepaid cards outside the United States will reach $295 billion by 2015.

Prepaid has shown significant growth around the world in recent years, but requisite scale economies to achieve profitability often have been a dream rather than a reality for many card providers.

A pay-as-you-go culture along with extensive mobile top-up and bill payment networks have paved the way for robust prepaid card reloading networks in the U.K.

On the face of it, open-loop gift cards should have a hard time replacing paper gift vouchers, which have been a large part of Europe’s retail industry since the late 1930s.

During the past few years, closed-loop prepaid card providers have responded to the needs of online game publishers by offering a payment option.

For many global financial cards players, the opportunity in Africa is continuing to grow from potential into reality.

How can we really get to that reality of cash-free living? (PBU V4, i7)

Earlier this year, companies up and down the gift card prepaid value chain waited for the Fed’s interpretation of the CARD Act of 2009 to see how they would have to change the way they do business. (PBU V4, i7)

There’s nothing quite as scary as an unintended consequence. And, the prepaid industry is facing a big one as a result of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. (PBU V4, i7)

Best use of prepaid value delivered via mobile phone or Internet. (PBU V4, i7)

Online Resources Corporation, a Chantilly, Va.-based provider of online financial services, announced that John Dorman, co-chairman of the company’s board of directors, has been named interim CEO while the company goes through reorganization.  (PBU: v4, i7)

Austin, Texas-based prepaid card provider NetSpend Corporation announced it has named George W. Gresham chief financial officer. (PBU: v4,i7)

National Gift Card Corp., an incentive gift card distributor based in Crystal Lake, Ill., recently hired Jason Abrahams to serve as marketing director for the company. (PBU: v4, i7)

Denver-based Mocapay, a mobile gift card technology provider, announced Marilyn Benson has been hired as senior vice president of national sales. (PBU: v4, i7)

Concurrent with the launch of a global R&D unit called MasterCard Labs, MasterCard Worldwide announced Garry Lyons has been appointed group executive, research and development to oversee the new venture. (PBU: v4, i7)

Cardlytics Inc., a provider of merchant-funded rewards technology via online banking systems, appointed Andrew Newman director of sales. (PBU: v4, i7)

Jacksonville, Fla.-based FSV Payment Systems, Inc., a prepaid card provider and processor, announced that George Coutros has joined FSV as chief operating officer. (PBU: v4, i7)

Virtual gift card technology provider CashStar Inc. announced several additions to its management team. (PBU: v4, i7)

Most innovative network branded, closed-loop or RAN prepaid program, product or service. (PBU V4, i7)

Best prepaid program launched and operated by a non-U.S. company outside the United States. Programs using a U.S.-based company for processing or similar support are eligible. (PBU V4, i7)

Most attractive or innovative design of a prepaid form factor—such as a card, fob or other means—to deliver a network branded closed-loop or RAN prepaid product. (PBU V4, i7)

No exploration of powerful women in prepaid would be complete without Jane Thompson, the force behind prepaid programs for the world’s largest retailer and a trailblazer for women executives. (PBU V4, i7)

Michele Sullender oversees one of the prepaid world’s most successful and innovative gift card programs. (PBU V4, i7)

At the company she helped found in 1999, Juli Spottiswood continues to demonstrate her influential status in the prepaid industry. (PBU V4, i7)

As London-based PrePay Solutions marches through milestones, Rachelle Smith plays an active role in helping the company deliver significant value. (PBU V4, i7)

The force behind Blackhawk Network’s renowned gift card mall, Talbott Roche continues to drive innovation by transforming vision into product launch. (PBU V4, i7)

Under Laura Kelly’s leadership, MasterCard’s global prepaid and health care solutions practice delivered a long list of accomplishments in 2009. (PBU V4, i7)

For Jenny Gehr, a 17-year veteran overseeing Metavante’s payment solutions group, the transition to FIS provides yet another platform to showcase her expertise in the field. (PBU V4, i7)

As Citi Prepaid Services globe-trots through Western and Central Europe, the Middle East, Asia Pacific and Latin America, it owes its global prepaid platform success to the team point guard, Lisa Herman. (PBU V4, i7)

A brutal year in the financial services industry worldwide did not stop G-T-P Group CEO Helen Child from hitting another milestone for the company she founded and built. (PBU V4, i7)

To fully appreciate Elizabeth Buse’s role, consider these numbers: In the last 18 months, she visited more than 22 countries and logged 100,000 airline travel miles. (PBU V4, i7)

South American Card Service (SACS), a year-old prepaid program manager based in Barueri, Brazil, launched an instant issuance corporate travel card. (PBU: v4, i6)

Meta Payment Systems channeled its 2010 Prepaid Expo USA promotional budget into a program that benefited five carefully chosen charities. (PBU: v4, i6)

Chris Byrd, executive vice president for prepaid health care card provider Evolution Benefits, explains President Obama's recently passed health care reform package and how it affects the prepaid industry. (PBU: v4, i6)

Best use of a corporate-funded prepaid card specifically in a transit application. (PBU V4, i6)

Best use of a corporate-funded prepaid card specifically in a business-to-consumer application. (PBU V4, i6)

Best use of a corporate-funded prepaid card specifically in a business-to-business application. (PBU V4, i6)

Galileo Processing, Inc., a Salt Lake City-based payments processor announced it has hired Philip Cormier as strategic partnerships executive. (PBU: v4, i6)

Prepaid card provider PreCash Inc. said Steve Taylor is being promoted to chief operating officer. In his new role, he will be responsible for the company's operational and financial arms. (PBU: v4, i6)

MasterCard Worldwide announced that Alfredo Gangotena has been appointed chief marketing officer, effective immediately. (PBU: v4, i6)

Best use of a corporate-funded prepaid card specifically in a business-to-employee application. (PBU V4, i6)

MasterCard Worldwide today announced Ajay Banga will succeed Robert Selander as president and CEO of the Purchase, N.Y.-based card network on July 1, 2010. (PBU: v4, i6)

After many years in financial services, Mia Mends was considering transitioning to nonprofit work when she interviewed at Houston, Texas-based PreCash Corp. (PBU V4, i6)

Blackboard Inc. introduced a multi-function prepaid card for student. (PBU V4, i6)

NetSpend recently announced that its cardholders loaded $1.04 billion to their NetSpend general purpose reloadable (GPR) cards during February—setting a company high-water mark for loads. (PBU, V4, i6)

On March 23, 2010, the Fed issued its long-awaited final rules amending Regulation E in connection with Title IV of the Credit Card Accountability Responsibility and Disclosure (CARD) Act. (PBU V4, i5)

Best use of online channel to sell network branded, closed-loop or RAN prepaid products. (PBU V4, i5)

Best use of third-party prepaid products by a brick-and-mortar retailer (PBU V4, i5)

Best use of a consumer-funded closed-loop or restricted authorization network gift card or line of gift cards. (PBU V4, i5)

Best use of a consumer-funded, reloadable network branded prepaid card for ongoing general use such as ATM access and purchasing. (PBU V4, i5)

In the United States, growth in the prepaid travel segment cratered during the past two to three years, mirroring the hit the travel industry in general took due to the worldwide recession. (PBU V4, i5)

Visa Inc. and PayPal made new product announcements in the past month that suggest each might be considering moving into a space dominated by the other. (PBU V4, i5)

Bancorp Payment Solutions Group’s managing director dishes on changes in the industry. (PBU V4, i5)

As mobile phone ownership continues to explode, Monitise Americas is determined to leverage these now ubiquitous devices to deliver financial information, mobile banking and, ultimately, mobile payments to consumers. (PBU V4, i5)

Paybefore just celebrated its third anniversary as a publication, and what better time for a bit of a graphic makeover? (PBU V4, i5)

Visa Inc. announced that Elizabeth Buse has been named group executive, international. (PBU: v4 i5)

Tim Sloane has been promoted to vice president of client services at Mercator Advisory Group. In his new role, he works across all service areas to ensure Mercator Advisory Group’s clients receive the highest level of service through personal engagement and technology, where appropriate. (PBU: v4 i5)

Third-party prepaid card distributor InComm has announced that Peter Scalera will join its executive team as vice president of retail marketing. (PBU: v4 i5)

First Data Corporation recently announced the appointment of board member Joe Forehand as chairman and interim CEO. Forehand succeeds Michael Capellas, who has accepted a new role as senior advisor at KKR focusing on technology.  (PBU: v4 i5)

eCommLink, a Las Vegas-based prepaid card processor, announced the appointment of Max Courington as national sales director. (PBU: v4 i5)

Shawn Brown has joined London-based mobile messaging and payments company Dialogue Communications as head of sales. The company also has appointed Alex Crisp to be its new compliance manager. (PBU: v4 i5)

Stefan Happ has been promoted to senior vice president and general manager, U.S. prepaid cards, at American Express. (PBU: v4 i5)

Best use of a prepaid card used to distribute state, federal or other government-administered benefits. (PBU V4, i4)

Best consumer marketing or promotional effort to generate awareness for a prepaid category or to sell a prepaid product or line of products. (PBU V4, i4)

Best use of a consumer-funded network branded gift card or line of gift cards. (PBU V4, i4)

Best use of a consumer-funded network branded prepaid card such as teen, travel, cross-border remittance or other application. Excludes GPR and gift cards.

When Congress began shooting darts at the prepaid card industry last year, the industry didn’t take the poke lightly. And, Talbott Roche led the charge as chief spokesperson.

From his early start with WildCard Systems, Gary Palmer set benchmarks for evolution in the prepaid card industry.

In its fourth annual iteration, Prepaid Expo USA hit the jackpot in Las Vegas with several high-profile keynote speakers. (PBU V4, i4)

In this interview, Paybefore asks Brad Hanson, Meta’s president, about the realignment and what it means for Meta and the industry. (PBU V4, i4)

Card manufacturer Atlantic Zeiser has bolstered its global internal and external communications department by appointing former journalist Marcus Geigle as public relations and communications marketing manager. PBU: (v4 i4)

Scott Galit has joined payment solutions provider i2c Inc. as president. In this role, Galit will be responsible for the company's continued growth. PBU: (v4 i4)

In a survey ranking the top 10 retail gift cards consumers received in the 2009 holiday season, Bath & Body Works came out on top. (PBU V4, i4)

Maritz Holdings, Inc. has purchased American Express Company’s 49 percent stake in the joint venture American Express Incentive Services (PBU V4, i4)

Clive Williams has joined PrePay Solutions as regional director for Northern Europe. PBU: (v4 i4)

TSYS announced that Mark D. Pyke, a 26-year veteran of the payments and financial services industry, has been named president of TSYS Acquiring Solutions. PBU: (v4 i4)

Visa Inc. recently announced that Bill Gajda will join Visa as head of mobile. PBU: (v4 i4)

It’s a paraphrase to be sure, but President Bill Clinton loves prepaid—or at least its potential to advance the social goals the former U.S. president holds close to his heart.

In this exclusive interview, Mike Miroslaw, StoreFinancial’s CEO, reflects on the effect of the economic meltdown and what’s ahead for his company and the industry. (PBU V4, i3)

The New York City-based processing technology company announced it has launched a payment processing developer network. (PBU v4, i3)

The benefits of payroll cards are well documented. (PBU V4, i3)

There are compelling reasons for the United States to adopt the EMV standard for payment cards. (PBU V4, i3)

Jim Contardi joined Atlanta-based First Data in June 2008 during a key milestone in company history. (PBU V4, i3)

Last year was an especially good one for sales of network branded prepaid cards distributed via credit unions. (PBU V4, i3)

Many U.S. companies are trying to capture a piece of the international remittance pie using prepaid cards as a funding source, delivery mechanism or both. (PBU V4, i3)

AccountNow announced James G. Jones has been appointed as the San Ramon, Calif.-based prepaid card provider’s CEO. (PBU: v4 i3)

Littleton, Colo.-based card manufacturer CPI Card Group announced four key hires in January. (PBU: v4 i3)

Barry Fergus was named CEO of Contis Group Ltd., the U.K.-based holding company and parent of the prepaid card provider and processor CredEcard. (PBU: v4 i3)

Coinstar, Inc. announced the appointment of J. Scott Di Valerio as chief financial officer effective March 2, 2010. (PBU: v4 i3)

Prepaid processor eCommLink recently announced the appointment of Vicente Mota as senior vice president of sales.  (PBU: v4 i3)

NYCE announced that Neil Marcous has been named president of NYCE Payments Network, LLC, and will lead FIS’ Payment Network Solutions business. (PBU: v4 i3)

Philippe Dufour, deputy CEO for PrePay Solutions, examines where stakeholders in the prepaid value chain are focusing and how they might play the "consolidation game." (PBU: v4 i2)

Stanton Consultancy Limited (SCL) isn’t a household name, but its clients are. Though the company is based in Brighton, England, its UltraPoS technology is employed in the sale of 70 percent of the mall gift card programs in the United States. (PBU: Vol. 4, i2)

Paybefore caught up with Duncan Olby, director of financial products in PayPal’s London office, to find out what’s behind the company’s foray into prepaid and how it has managed to be successful so quickly. (PBU: V4, i2)

RegaloCard founder and CEO Greg Keough predicts his company will be the top-earning mobile remittance company in the world by the end of 2010. (PBU V4, i2)

GiftCards.com recently announced a service that will combine the increasing popularity of gift card exchange Websites and automatic bill pay. (PBU V4, i2)

Kirsten Trusko embraces a panoramic view of the prepaid card industry. (PBU: V4, i2)

FSV Payment Systems, Inc., a Houston-based prepaid card provider and processor, announced that Stephen W. Reesing has been appointed chief financial officer and Matthew P. Frye was named chief commercial services executive. (PBU: v4 i2)

Speer & Associates, Inc., an Alpharetta, Ga.-based financial services consulting firm, announced Les E. Riedl has been named CEO. (PBU: v4 i2)

The financial services industry likely will remember 2009 as the year of legislative response. (PBU: V4, i1)

In 1992, Britain’s Queen Elizabeth famously referred to the year—as an “annus horribilis.” (PBU: V4, i1)

On Christmas Eve, the U.S. Senate passed the Patient Protection and Affordable Care Act (HR 3590). (PBU: V4, i1)

Competitors from outside traditional banking disciplines continue to think creatively about how to use their technology and core businesses to get a bite of the payments profit pie. (PBU: V4, i1)

Cardtronics, Inc., the Houston-based ATM operator, announced that its board of directors has selected Steven A. Rathgaber as the company's new CEO. (PBU: v4, i1)

Incentium, formerly VIPGift, recently announced the appointment of Thomas Venable as senior vice president of sales. Kelli Hasson and Michael Bagley were named sales directors. (PBU: v4, i1)

Mint Technology Corp., the Toronto-based prepaid card provider, announced that Andrew Martinez has been appointed CFO. (PBU: v4, i1)

Los Angeles-based Pacific Mercantile Bancorp announced that Andrew (Andy) M. Phillips has been nominated to serve as a member of its board of directors and on the board of directors of its wholly-owned banking subsidiary, Pacific Mercantile Bank. (PBU: v4, i1)

TMG (The Members Group), a Des Moines, Iowa-based credit union service organization, has added Mark Kenney to its card services sales force. (PBU: v4, i1)

If the U.K. Payments Council can end check-clearing in 2018 with the stroke of a pen, certainly the U.S. banking system could do the Brits one better (PBU: V4, i1)

A comment letter sent by several consumer groups to the Federal Reserve Board of Governors in response to proposed gift card rules inadequately distinguishes between closed-loop and network branded prepaid cards.

Industry leaders worldwide responded to Paybefore’s request to tell us how prepaid products fared in 2009. (PBU: V3, i20)

The FDIC released results of what it calls the most comprehensive survey to date of the unbanked and underbanked population in the U.S. (PBU: V3, i20)

Industry players weigh in on the bells and whistles shaping the GPR space. (PBU: V3, i20)

This year, my reflections focus on gratitude. (PBU: V3, i20)

Paybefore caught up with Ukash CEO Mark Chirnside to find out more about the company’s global expansion strategy and just who is using Ukash and why. (PBU: V3, i20)

Earlier this year, I read What Would Google Do? (New York: HarperBusiness, 2009) in which author Jeff Jarvis explores the principles under which Google and similar companies operate (PBU: V3, i20)

First Data announced Kevin Barry has joined the company as general manager of the STAR Network and Peter J. Korpady has been hired as senior vice president, national sales and relationship management. (PBU: v3 i20)

MasterCard Incorporated recently announced the appointment of Kevin Stanton as president of MasterCard Advisors, the company's professional services arm, effective Jan. 1, 2010. (PBU: v3 i20)

Consumer Reports urged consumers to avoid giving the cards as gifts because of handling fees and possible expiration dates. (PBU: V3, i20)

In addition to great pasta, gelato and wine, Italy is known for having the most robust prepaid card environment in all of Europe.  (PBU: V3, i19)

American Express Company announced on Nov. 18 it has agreed to acquire alternative payments company Revolution Money for approximately $300 million. (PBU: V3, i19)

In its bid to move from cash to electronic payments, The Reserve Bank of India has proposed, among other things, a domestic payment scheme to help increase competition and lower costs for Indian banks. (PBU: V3, i19)

Two new reports on consumer awareness and usage of prepaid products in Europe were released last month. (PBU: V3, i19)

Sen. Robert Menendez (D-N.J.) has drafted a bill to amend the Electronic Fund Transfer Act (PBU: V3, i19)

Q&A with Bob Hunt, Director of the Phila. Fed’s Payment Cards Center The Center’s Role and How the Prepaid Industry Should Prepare for its ‘Golden Age’ December 2009 Send to a Friend | Request Reprint | Printable View | Comments By Paybefore Staff Bob Hunt

First Data announced that Chip Swearngan has joined the company as senior vice president, communications. (PBU: v3 i13)

Anil D. Aggarwal, chairman and CEO of TxVia, a provider of processing systems for prepaid cards, has been elected to the board of directors of ACCION USA, a nonprofit organization committed to bringing affordable small business loans to micro entrepreneurs. (PBU: v3 i19)

Paybefore’s tips for writing your comment letter to the Fed, due December 21, 2009.

Being a part of the prepaid world, I assumed that big-name organizations would be working to protect us in Washington, D.C. Boy, was I wrong. (PBU: V3, i18)

India is top of mind as an emerging market in a variety of industries. (PBU: V3, i18)

The regulatory regime governing cross-border payments in the European Union (EU) is undergoing historic change. (PBU: V3, i18)

Don Kingsborough, on the relationship of gift cards and the economy. (PBU: V3, i18)

First Data announced late last month it has enabled its STAR Network, which encompasses about 2 million retail locations and 350,000 ATMs, to support PIN-secured loads and reloads for network branded prepaid cards. (PBU: V3, i18)

MasterCard Worldwide recently announced it has partnered with Spanish-language media company Univision Communications Inc. to launch two prepaid cards in the coming year aimed at the Hispanic market throughout the United States. (PBU: V3, i18)

Fiona Duncan has helped elevate prepaid from a company asset to a top priority for strategic growth and innovation. (PBU: V3, i18)

Milwaukee law firm Quarles & Brady LLP announced that Donald Layden will join the firm’s corporate services group in addition to serving as an advisor for private equity firm Warburg Pincus LLC. (PBU V3 i18)

Serendipity played a role in Jason Tiede’s prepaid career. A random Thanksgiving dinner conversation, a chance phone call and convenient geography led to a job at Ecount—now Citi Prepaid Services—during Tiede’s senior year of college. (PBU: V3, i17)

Working with clients is only part of Jason Brooks’ role as vice president of product development at Meta Payment Systems. Anticipating their needs is the strategic part. (PBU: V3, i17)

Alex Liu has a big job as vice president of global prepaid product for MasterCard Worldwide. But bigger than his title is Liu’s advocacy on behalf of the clients he’s charged with serving. (PBU: V3, i17)

An attorney at Bryan Cave LLP in Chicago, Margo Hirsch Strahlberg, 34, holds the distinction of influencing and molding an industry under legislative scrutiny. (PBU: V3, i17)

Viewpoint: Marketing Strategies for Tough Times October 2009 Send to a Friend | Request Reprint | Printable View | Comments By Bob Liodice, President and CEO, Association of National Advertisers While historically, marketing expenditures are among the first to be cut in

The widespread use of mobile payments has been predicted for some time, but expensive point-of-sale upgrades for merchants and limited availability of handsets equipped with contactless chips have made adoption of the technology painstakingly slow.  (PBU: V3, i17)

Craig Marshall founded a Better Served World (BSW) to bring his vision of serving developing markets with prepaid card programs to fruition. (PBU: V3, i17)

After what he called a "challenging year," not only for the economy in general but for the payments industry as well, it’s time for companies to look for growth strategies as the economy begins to emerge from "the storm," Tim Murphy, group executive core products, global debit and prepaid for MasterCard Worldwide, said. (PBU: V3, i17)

Rome is known for its architecture, cuisine and religion. And, for two days in November, VRL Financial news hopes it will be known as a hub for prepaid industry leaders, as well. (PBU v3 i17)

M2 Global Ltd, an Antigua-based electronic payments company, has acquired London-based Altair Technologies Limited and will form M2 Europe.  (PBU v3 i17)

People on the Move: John Partridge, Visa October 2009 Visa Inc. announced that John Partridge has been named president of the company. Partridge, who was formerly Visa’s chief operating officer, will continue to report to Joseph W. Saunders, chairman and CEO of Visa Inc., and will oversee all client, m

Maverick Network Solutions Inc, a Wilmington, Del.-based prepaid card provider, announced it has appointed Philip A. Valvardi, III as CEO. (PBU v3 i17)

Javelin Strategy & Research, the Pleasanton, Calif.-based payments and security consultancy, announced it has hired Beth Robertson as director of payments research and Robert Vamosi as research analyst for risk, fraud and security. (PBU v3 i17)

Barclaycard, the card management and transaction processing division of U.K.-based Barclay’s Group, appointed Jim Wadsworth head of strategic product management for prepaid. (PBU v3 i17)

Through each phase of his life, Brooks Smith has taken away important lessons. (PBU: V3, i16)

Criticism of reloadable network branded prepaid cards has jumped from the grassroots campaigns of consumer activist groups to the pages of the "paper of record." (PBU: V3, i16)

Q&A with Ralph Calvano, SVP and GM, Prepaid Solutions, FIS Plans for Prepaid after Metavante Acquisition October 2009 Send to a Friend | Request Reprint | Printable View | Comments By Loraine DeBonis, Executive Editor On Oct. 1, two of the largest paymen

Financial institutions and others in the payments industry in Latin America must consider prepaid as part of their expansion plans. (PBU: V3, i16)

U.S. Bank has named Anthony (Tony) Vuoto to the position of general manager of U.S. Bank Retail Payment Solutions, which comprises consumer and small business credit, debit, prepaid and specialty card businesses, as well as its retail payments innovation unit. (PBU v3 i16)

Sara Sampson was named senior vice president of marketing and business development by Incentium, the Chattanooga, Tenn.-based loyalty program provider formerly known as VIPGift. (PBU v3 i16)

Chicago-based payment gateway provider Ezic announced several additions to its team including naming Angela Stamison as its vice president of channel sales. (PBU v3 i16)

People on the Move: David Torgerson, Cardlytics October 2009 David Torgerson has been hired as senior vice president of bank sales for Atlanta-based merchant-funded rewards technology provider Cardlytics. Torgerson comes to Cardlytics from CheckFree, acquired by Fiserv Inc. in 2007, where he was vice preside

American Express has announced, effective immediately, it is doing away with all post-sale fees related to American Express-branded gift cards sold in the United States. (PBU v3 i15)

Kim Kaczmarek, vice president of product development for TSYS Healthcare, has won the Solutions Innovator Award, presented by CDHC Solutions Magazine. (PBU v3 i15)

MasterCard Europe announced that Phil Davies joined the product management team for Prepaid Europe, while Claire Dudley-Hodson assumed the role of business leader, prepaid sales for MasterCard Europe. (PBU v3 i15)

First Data Corp. has named Kevin J. Schultz president of financial services and John Elkins chief marketing officer. (PBU v3 i15)

Mercator Advisory Group’s annual market survey benchmarks the ongoing growth and development of open- and closed-loop prepaid products in the United States, measured by dollars loaded in 33 prepaid segments. (PBU: V3, i15)

This holiday season retailers are gearing up for a big fight. Consumer spending is expected to be flat over last year at $810 billion between November 2009 and January 2010, according to a new Deloitte study. (PBU: V3, i15)

Even though he works to advance complex technology, Farhan Ahmad of Discover Financial Services follows a plain principle: Keep it simple. (PBU: V3, i15)

The closed-loop prepaid card market experienced tepid growth in 2008, and indicators suggest more of the same when 2009 figures are compiled, according to a report from Mercator Advisory Group. (PBU: V3, i15)

Rep. Carolyn Maloney (D-N.Y.) and House Financial Services Committee Chairman Rep. Barney Frank (D-Mass.) last week introduced the Expedited CARD Reform for Consumers Act of 2009 (H.R. 3639), an amendment to the CARD Act of 2009. (PBU: V3, i15)

First African-American billionaire discusses prepaid, credit and serving urban communities (PBU: V3, i15)

From its New York City office, Prepaid Resources provides turnkey elements that prepaid program managers can use to enhance their programs in addition to consulting support. (PBU: V3, i14)

New York City-based prepaid processor TxVia recently named Paul Zurlo to its board of directors. (PBU v3 i14)

MoneyGram International, a Minneapolis-based money transmitter, announced it has named Pamela H. Patsley CEO. (PBU v3 i14)

People on the Move: Rebekka Rea, Innovative Prepaid Solutions Sept. 2009 With more than nine years of experience in the prepaid industry, Rebekka Rea has launched Innovative Prepaid Solutions, a consultancy specializing in prepaid products with an emphasis on closed-loop gift cards.  Rea, most recently vice

InComm, the Atlanta-based third-party prepaid card distributor, announced that Karen Budahazy will join InComm Canada's management team as general manager. (PBU v3 i14)

Prepaid card provider edo Interactive announced that Jay Graves has been named chief technology officer and Lisa McGinty has joined the company to manage business development for the edo card services group (PBU: V3, i14)

Industry Member Announces Candidacy for U.S. House   Ashvin Lad Tosses Hat in Ring   September 2009 Send to a Friend | Request Reprint | Printable View | Comments   By Paybefore Staff Ashvin Lad wants your vote, that is if you live in Illinois’ 5th congressional d

On July 8, 2009, Congressman Barney Frank (D-Mass.), along with 12 co-sponsors, introduced HR 3126, the "Consumer Financial Protection Agency Act of 2009." (PBU: V3, i14)

People displaced by violence in the Pakistan are receiving relief funds on Visa prepaid cards, the San Francisco-based payments network announced last week. (PBU: V3, i14)

Walmart Stores, Inc., which has sold millions of network branded prepaid cards to U.S. consumers, last week announced it is replacing paper paychecks with the new Money Network MasterCard Paycard for the approximately 700,000 Walmart employees who are not enrolled in the company’s direct payroll deposit program. (PBU: V3, i14)

In June 2008, the U.S. Treasury Department began rolling out its Direct Express program, paving the way for the nation’s 4 million unbanked Social Security recipients to receive their monthly payments on a reloadable network branded prepaid card. (PBU: V3, i13)

Green Dot is launching a new "value-pricing" model for its general purpose reloadable (GPR) cards, and, in some cases, regular users will have virtually no fees. (PBU: V3, i13)

With all the hype around mobile banking and payments, it’s relatively easy to envision a world where phones become ubiquitous banking and payment devices. (PBU: V3, i13)

Customized loyalty programs and those using network branded prepaid cards are helping businesses do just that by increasing consumer choice and connecting to the consumer more often and in more memorable ways. (PBU: V3, i13)

Mobile financial services have received significant attention from banks, mobile carriers, tech-nology providers and investors. (PBU: V3, i13)

Executive Profile: One on One with Drew Kese, Director, Global Prepaid Head, Citi Prepaid Services By Paybefore Staff August 2009 Send to a Friend | Request Reprint | Printable View | Comments   It’s really quite simple for Drew Kese of Citi Prepaid Services to expla

Paybefore consulted prepaid executives working in a variety of geographies to find out whether there is room for U.S. players in their markets and what they’ve learned from their own expansion efforts. (PBU: V3, i12)

Last week, the U.K.’s largest mobile phone company, Telefónica O2 UK Limited, known as O2, made headlines with news of its foray into financial services via prepaid cards. (PBU: V3, i12)

The Network Branded Prepaid Card Association (NBPCA), the trade association representing the interests of the cross-section of organizations in open-loop prepaid, celebrated its third membership-year anniversary at the beginning of this month and is now into its fourth year of operation. (PBU: V3, i12)

Factors that drive prepaid success now are evident with many being “must haves.” (PBU: V3, i12)

During a trip to the United States in 2004 in his capacity as a new media programming executive working with major production studios, Mashallah H. M. Ali, now CEO of M-Cube Media Ltd, was presented with the concept of partnering with one of his studio clients to sell a prepaid card program—a novelty at the time—in Europe. (PBU: V3, i12)

Urban Trust Bank (UTB), an Orlando, Fla.-based financial institution led by Black Entertainment Television founder Robert L. Johnson, recently announced it will issue and market a reloadable prepaid Visa card. (PBU: V3, i12)

In the prepaid card processing value chain, merchant acquirers are the principal owners of the relationship with merchants.

Merchants suffering from double-digit drops in retail sales may have gotten a lift from their gift cards in 2008, particularly those sold through prepaid card malls, according to the latest research from Mercator Advisory Group. (PBU: V3, i11)

When is a new prepaid initiative not new? For TSYS, it’s when the company offers a well-established prepaid product to existing clients, but in a completely different way. (PBU: V3, i11)

ROI not there yet for issuers and merchants. (PBU: V3, i11)

There are indications that 2009 may be a good year for general purpose reloadable (GPR) prepaid cards despite general economic concerns. (PBU: V3, i11)

Paybefore on a tear: sets readership records in March, April, May and June. (PBU: V3, i11)

Meet the execs our readers say have the most sway in the industry beyond U.S. borders.

The Obama administration last week released a white paper detailing its plan for a proposed shakeup in the financial regulatory framework in response to perceived market failures that spawned the current economic recession. (PBU: V3, i10)

A company headquartered in an 1850s-era, red-brick castle in South Portland, Maine, is helping shape the future of closed-loop gift cards by taking them into the digital world and leaving plastic behind. (PBU: V3, i10)

As many economists have reminded us in the past: When the U.S. markets sneeze, Latin America catches a cold. (PBU: V3, i10)

For Tony Craddock, a naturally curious and motivated person, his role overseeing Prepaid Awards Ltd. and founder and CEO of Giftex Prepay provide the ideal niche for his talents as an entrepreneur, salesman and business leader. (PBU: V3, i10)

How can prepaid be profitable? That was a central question industry experts wrestled with in London last week at the Prepaid 09 Conference & Expo. (PBU: V3, i10)

Last week Romania saw its second prepaid card launch in as many months. (PBU: V3, i10)

Understanding the underlying situation may provide us with some effective steps toward changing the game. (PBU: V3, i9)

While prepaid cards, particularly general purpose reloadable, payroll and government disbursement products, have long been part of the discussion when it comes to serving the financial needs of underbanked consumers, prepaid took center stage at last week’s Underbanked Financial Services Forum in Dallas. (PBU: V3, i9)

Viewpoint: Prepaid Cards as Monetary Instruments: Preparing for Coming Regs June 2009 Send to a Friend | Request Reprint | Printable View | Comments   By Terry Maher, Partner, Baird Holm LLP 1 Based on the recently passed Credit Card Accountability Responsibility an

After traveling to Capitol Hill four times in a six-week period to meet with Senators, Congressmen and staffers at the Federal Reserve Board to discuss the proposed Fair Gift Card Act (now Title IV of the CARD Act), I feel like a chiseled veteran of Washington, D.C. (PBU: V3, i9)

While the Loyalty Expo in Hollywood, Fla., explored many facets of the loyalty and reward industry, a theme that emerged in sessions during the three-day event was the delivery of rewards and promotional offers via mobile devices. (PBU: V3, i9)

The network discusses a prepaid strategy that’s more stealth than splash. (PBU: V3, i9)

To help industry members evaluate the potential impacts of the CARD Act, we offer the following summary of the material provisions of its Title IV that affect or have the potential to affect the prepaid card industry, particularly organizations involved in the network branded gift card segment. (PBU: V3, i9)

Indebtedness after graduation is a growing trend among college students. Happ, general manager of prepaid cards North America for American Express, considers the possibilities this trend presents for prepaid products. (PBU: V3, i9)

As the dust settles from the recent passage of U.S. H 627, otherwise known as The Credit Card Accountability, Responsibility and Disclosure Act of 2009 (the CARD Act), many opinions have emerged regarding the act’s impact on credit cardholders and the credit card industry as a whole. (PBU: V3, i9)

Sixteen years ago I joined Argos, now the largest household goods retailer in the U.K. and Ireland, as managing director of its fledgling business-to-business company. (PBU: V3, i8)

Transaction monitoring—using a detection system that reviews prepaid card transactions to identify suspicious activity that may relate to fraud, money laundering, terrorist financing, drug trafficking or other illicit activities—appears to have become a standard feature of prepaid programs across the United States, according to a cross-section of industry experts and Paybefore’s mini-survey. (PBU: V3, i8)

As the mother of three daughters, all now in their 20s, I’ve spent a lot of time thinking about the issues of maturity and, on occasion, the lack thereof. (PBU: V3, i8)

Despite Silverton Bank’s failure earlier this month, it’s pretty much business as usual for prepaid cardholders, according to the FDIC. (PBU: V3, i8)

Just before his stated deadline of Memorial Day, President Obama signed into law the Credit Card Accountability Responsibility and Disclosure Act of 2009 (U.S. H 627), also known as CARD, following a rigorous grassroots effort to educate Capitol Hill on the bill’s implications for network branded prepaid cards. (PBU: V3, i8)

A company named Young America does not evoke images of a 40-year-old company serving major national retailers in the conservative world of rebates, incentives and promotions. (PBU: V3, i8)

The prepaid card industry has come a long way in developing a value proposition that truly speaks to the needs, desires and means of financially underserved consumers. (PBU: V3, i8)

In addition to prepaid, card manufacturers are expanding their lines of “green” or environmentally friendly cards to meet the increasing demand from issuers and consumers. (PBU: V3, i7)

Voting on S 414, the “Credit Card Accountability, Responsibility and Disclosure Act of 2009” (CARD for short), has been postponed until next week, according to industry members who have been following the bill’s progress because of its potential effect on prepaid cards, particularly network branded products. (PBU: V3, i7)

Top money transmitters discuss how prepaid fits into their growth strategies. (PBU: V3, i7)

Matt Lanford is head of prepaid Europe for MasterCard, a position he assumed in January after three years at MasterCard. (PBU: V3, i7)

Never-ending growth and wealth was a nice dream most of us shared, but it was founded on confidence in a better future. (PBU: V3, i7)

The wide array of prepaid segments makes it difficult to make sweeping statements about consumer behaviors, but one area where few virtues of prepaid have been extolled is the ability of prepaid to generate loyalty. (PBU: V3, i7)

The Pepper Corporation, a U.K.-based consultancy, recently released the latest installment of its quarterly Pepper Prepaid Report, tracking and analyzing fees associated with consumer-funded network branded prepaid card programs operating in the U.K. and Ireland. (PBU: V3, i6)

The best consumer marketing or awareness-building campaign. (PBU: V3, i6)

The best program launched and operated by a non-U.S. company outside of the United States. (PBU: V3, i6)

Some call the recently announced $2.94 billion Fidelity National Information Services’ acquisition of Metavante a “game-changer” for banking technology service providers. (PBU: V3, i6)

Roy Sosa was born with an entrepreneurial spirit. Just ask his mother, a physician, who encouraged him to pursue medical school. (PBU: V3, i6)

On March 31, the U.S. Senate Committee on Banking, Housing and Urban Affairs met to mark-up and vote on The Credit Card Accountability, Responsibility and Disclosure Act, a bill strengthening consumer protections for credit card holders. (PBU: V3, i5)

Long before prepaid was an industry, before it became a strategic product category, there was Brad Hanson—now president of Meta  Payment Systems. (PBU: V3, i5)

During the last decade, Steve Streit’s career makeover from radio celebrity to financial services guru helped mainstream the general purpose reloadable prepaid card as we know it today. (PBU: V3, i5)

A decade ago, Matt Gillin recognized the transformative nature of prepaid products and how they could deliver cost efficiencies to corporations. (PBU: V3, i5)

The best use of a gift card or line of gift cards. (PBU: V3, i5)

The best use of a consumer-funded network branded prepaid card, excluding gift cards. (PBU: V3, i5)

Execs positive as prepaid moves more mainstream. (PBU: V3, i5)

Galileo execs Clay Wilkes and Todd Brockman discuss growth, portfolio management and why they will change prepaid. (PBU: V3, i5)

Once again, our legislators haven’t a clue about the payments industry or history. (PBU: V3, i5)

Organizations evaluating prepaid processing solutions face a bewildering array of jargon, acronyms and marketing spin that tends to shift the focus away from key selection criteria. (PBU: V3, i5)

With a newly elected president in Washington, D.C., and the nation’s financial services industry in flux, prepaid card providers are relying more than ever on in-house legal stewardship. (PBU: V3, i4)

Media reports featuring consumer groups and lawmakers railing against “unfair” and “predatory” fees associated with network branded prepaid cards used for distributing state unemployment benefits have become increasingly frequent and strident during recent weeks. (PBU: V3, i4)

The Center for Financial Services Innovation (CFSI) offered Paybefore a sneak peak at new research on the attitudes of industry players focused on general purpose reloadable prepaid cards. (PBU: V3, i4)

With more than 1 billion in population, 60 percent of whom are unbanked and underserved, India presents a sizable opportunity for the introduction of prepaid products. (PBU: V3, i4)

With an impressive near 200 percent year-over-year increase in sales, online gaming prepaid cards seem to be a bright spot for retailers and online game publishers alike. (PBU: V3, i4)

On the day H&R Block rolled out its Emerald Prepaid MasterCard—giving clients the option of loading tax refunds onto a prepaid product—Kevin Morrison and his team traded high-fives. (PBU: V3, i4)

Accor Services, parent company of PrePay Technologies, and MasterCard Europe last week announced the formation of PrePay Solutions, a joint venture to leverage Accor’s expertise in prepaid programs and MasterCard’s worldwide reach and network. (PBU: V3 i3)

Walmart, the world’s largest retailer, announced Feb. 18 it is slashing pricing on the Walmart MoneyCard, a Visa-branded general purpose reloadable prepaid product it introduced in 2007. (PBU: V3 i3)

I believe our industry is at a crossroad. And, that’s the issue I’d like to address. (PBU V3 i3)

Paris Holt didn’t set out to be a prepaid card provider when he founded telSPACE in 1998. But when he saw how customer churn was affecting his mobile virtual network (MVNO) clients, he recognized the benefits of becoming one. (PBU: V3 i3)

Is it the Oscar season or the current shifting of global tectonic plates that makes me want to step back from daily concerns and think big thoughts? (PBU: V3 i3)

One of the more evergreen discussions in the incentive business is the “cash versus non-cash” debate. (PBU: V3, i3)

Over the past half-dozen years, gift card malls have become an appealing destination for consumers and a winning concept for card issuers and retailers. But now that the market is seeded, what is it going to take to bring these “malls” to full bloom? (PBU: V3, i3)

Identifying relevant key performance indicators (KPIs) is critical to helping prepaid businesses measure, communicate and manage performance.

With prepaid growing faster than any other segment of financial services, questions abound on all sorts of topics. Paybefore reached out to leaders throughout the industry, asking them to respond to questions we find particularly relevant at this point in the evolution of prepaid.

The results are in—our summer survey of subscribers and non- subscribers has revealed the five most interesting people in the prepaid card industry.

If you are a member of the prepaid card industry, ask yourself one simple question: Is processing integrity built into every level of every service you provide to your customers, cardholders and partners?

From the RFP to post-launch learnings

The numbers speak for themselves. Estimated to reach more than $421 billion by 2010, the combined prepaid market is booming and showing no signs of deceleration.

With 10 years of industry hindsight, Carl Ansley, founder and president of TxVia, answers the critical questions an issuer or program manager should look for when selecting a processing platform partner.

Having served in the payments industry for more than 20 years, I’ve seen both real and illusory kinds of change. The prepaid category is without a doubt one of the former.

Independent research commissioned by MasterCard shows that prepaid is an important and growing opportunity in Europe but also finds that key European markets are in “varying stages of development,” based on different histories of banking, credit and payment practices.

The prepaid card industry always has been at the forefront of developments in payment systems architecture and technology. (PBU V3 i2)

In 2008, prepaid card sales were estimated to total more than $88 billion, with $25 billion coming during the holiday shopping season alone. (PBU: V3 i2)

On Jan. 16, the United States Supreme Court announced it will hear a case, Cuomo v. Clearing House Association, which will test certain aspects of the concept of federal preemption. (PBU: V3 i2)

As lawyers working almost exclusively in the area of payments and banking, we often are asked what change will mean to payments in general and prepaid payments in particular. (PBU: V3 i2)

The European Commission announced on Jan. 7 it had carried out unannounced inspections at the premises of several smart card chip producers in the European Union. (PBU: V3 i2)

It’s traditional to start a new year by taking stock of what happened during the past 12 months and anticipating what may lie ahead. And, who better to provide that perspective than Paybefore readers? (PBU: V3 i1)

Experts advise strong companies to weather the storm, but if you may need capital, start looking now. (PBU: V3 i1)

On Dec. 23, RBS WorldPay announced its network security had been breached, exposing the personal information of up to 1.5 million network branded payroll and gift card cardholders. (PBU: V3 i1)

When Teri Llach of Blackhawk Network hears someone downplay the importance of advertising and marketing, she smiles—and often shares this story... (PBU: V3 i1)

Austrian business pioneers prepaid internet payments in Europe. (PBU: V3 i1)

MasterCard Worldwide announced organizational changes last week that combine global customer accounts and regional activities around the world into more centralized units. (PBU: V3 i1)

A time to move ahead - with this issue of Paybefore Update, we’ve reached a milestone: our final newsletter for 2008.

Prepaid cards, including closed- and open-loop varieties, are expected to have the greatest increase in online transactions of any payment method by 2013, according to a new report from Javelin Strategy & Research.

Rechargeplus and eCommLink today announced a global alliance aimed at serving overseas foreign workers through a prepaid card program bolstered by mobile technology.

This September, as the unfolding credit crunch was choking off many sources of funding, Transaction Wireless, a mobile commerce and marketing company based in San Diego, managed to buck the trend in the economy by raising $2.25 million in venture financing.

With more than 3 billion mobile handsets in use worldwide, combining payment technology with devices such as a mobile phone or PDA makes a lot of sense both for consumers and companies that seek to benefit from the increase in consumer demand.

The prepaid market, as a whole, will continue to grow at a double-digit pace between now and 2011, but growth estimates have been tempered due to current economic conditions, according to a report released late last month by Mercator Advisory Group.

For his entrepreneurial drive, Matt Gillin can thank his parents and grandparents, who lived the American dream of owning their own businesses.

Last month, PreCash, the Houston-based prepaid card program provider, dipped its toe into TV advertising with commercials that promote the benefits of its Visa-branded Vision Premier general purpose reloadable prepaid card.

Nobody is expecting consumers to be pulling out their credit cards to fund their gift shopping, as had become the norm in previous years.

When Grant Rogers worked for First Data, an important client called with an idea. It was Brad Hanson, then of BankFirst.

For shopping centers, the benefit of driving incremental revenue generated by a gift card program to their retail tenants is obvious. Implementing such a program, however, can be a challenge.

Leadership and innovation were the themes of the 30th annual BAI Retail Delivery Conference & Expo in Orlando, Fla., last month.

In recent weeks the pages of Paybefore have been filled with projections of gift card sales and surveys describing consumers’ attitudes and behaviors this holiday season relating to the popular plastic gifts.

Viewpoints: Instilling Consumer Confidence in Gift Cards December 2008 Send to a Friend | Request Reprint | Printable View | Comments By Talbott Roche, Senior Vice President, Blackhawk Network In today’s economic environment, it’s not surprising that the news is sat

Although Travelex introduced its first prepaid travel card in Australia in 1994 and has done quite well—for every $1 spent on its traveler’s checks today, $25 goes onto prepaid cards—the overall prepaid market in Australia still is described by many as in its infancy.

The FDIC replaced its General Counsel’s Opinion No. 8 last month, classifying the funds underlying stored value cards as “deposits” to the extent they have been placed at an insured depository institution.

Keeping an eye on growing areas of business, TSYS, one of the largest and best known credit and prepaid card processors, is looking to the borders north and south of the United States for new prepaid opportunities.

The Better Business Bureau, a coalition of 128 local bureaus dedicated to setting ethical standards for business dealings and ensuring adherence to those standards by companies that wish to be accredited by the organization, is perceived as more of a watchdog than a partner in an entrepreneurial company.

If there was ever a time for banks to consider adding prepaid products to their card portfolios, now is the time.

In Viewpoints, prepaid and stored value card industry professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

There are many reasons for banks to be strong supporters and suppliers of prepaid, but they need to enter the market with understanding and forethought.

Everyone knows that change, as promised by President-elect Obama’s campaign, is coming. Just what that change will be, particularly pertaining to financial services, is the $64,000 (or, perhaps, in these price-inflated times the $64 billion) question.

When Naveen Surya arrived in Tokyo to prepare his client, Union Bank of Switzerland, for transition to the euro, his superiors gave him 50 books as study material.

In a tough economy, will consumers be more likely to use general purpose reloadable cards? Experts weight in.

British newspapers have been making headlines launching co-branded general purpose prepaid cards since 2006. But, the Evening Standard, is using prepaid in a very different way.

In a souring economy, retaining customers and rewarding outstanding employees are vital for companies hoping to survive and thrive, according to experts at the inaugural Loyalty Expo held in Orlando, Fla., last week.

As network branded prepaid cards have become increasingly popular as gifts, incentives, rebates and more, a common question from consumers is: How do I use the full balance on my card?

Last week, Paybefore Executive Editor Loraine DeBonis and I had the opportunity to attend the VRL prepaid conference (“Prepaid Cards Summit 2008”) in London.

In Viewpoints, prepaid and stored value card industry professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

The recent financial market gymnastics have prompted BearingPoint clients of all sizes to ask how they can continue to offer health benefits (some were talking of having to drop them altogether) and how to address the existing/expanding impact of retiree benefits now on their books.

The closed-loop prepaid card market is still growing overall, but growth in certain segments has eroded with some of the slack being taken up by network branded prepaid cards, according to the 5^th Annual Prepaid closed-Loop Market Assessment recently released by Mercator Advisory Group.

While the economy has been the main focus of discussion this month, the prepaid card industry continues to face issues that began long before the stock market fell and global governments jumped in to capitalize financial institutions.

Three additional industry leaders add their thoughts on the future of prepaid in a time of market turmoil.

Scott Galit’s inspiration to start a prepaid processing company took seed at a conference.

Paybefore sat down with CEO Matt Gillin and Director, Global Product Head Drew Kese to find out more about the decision to change the company’s name, its progress in international markets, where they see the growth for prepaid and how the industry has changed since Ecount was founded in 1997.

In 1996, Warren Hardy, who had founded and fostered what turned out to be one of the largest distributors of cellular phones in Europe, made a bold prediction about the fledgling mobile phone industry: Certain countries would eventually see greater than 100 percent penetration of mobile phones.

The very real probability of a significant recession combined with consumer uncertainty will affect most prepaid markets in the short run.

I've run companies through downturns before. Some old truths come back in style, and we're reminded of how important the basics are.

During this unprecedented time of economic uncertainty, the global economy is searching for leadership, guidance and new solutions.

When consumers see big brands faltering, it brings home a "you can trust nobody" message. When it comes to money, trust is the ultimate brand value. If you lose it, you are dead.

Blackhawk Network released a white paper that examines gift card mall shoppers and the unique motivations behind their decision to purchase (or not to purchase) gift cards.

As a nonprofit affiliate of ShoreBank Corp., the Center for Financial Services Innovation holds a rare vantage point: It provides objective research to financial institutions looking to build bridges into underbanked communities and offers funding to upstart companies.

With retailers bracing for a weak showing in fourth-quarter sales, gift card marketers are relatively optimistic about the upcoming shopping season.

Those familiar with the prepaid industry and the coverage it receives in the mainstream media have gotten used to news reports with a negative slant.

Although experts gathered at the ATM, Debit & Prepaid Forum in Chandler, Ariz., earlier this month did not agree on the size of the prepaid market (estimates vary by the tens of billions), a few themes emerged from the sessions about what is vital for prepaid growth and profitability—execution, increased consumer awareness, innovation and improved cardholder experience.

While network branded prepaid cards can’t exist without banks backing them, some banks continue to exist without network branded prepaid cards in their portfolios.

Late last month, the Prepaid International Forum (PIF), a London-based trade association representing parties participating on a commercial basis in the prepaid economy, gathered in Brussels, Belgium, for its annual general member meeting.

Where does a payments industry veteran looking for his next opportunity find inspiration? For Ed Braswell, it was at his 17-year-old daughter’s birthday.

In Viewpoints, prepaid and stored value card industry professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore

With the disappearance of bopo Cards (Australia) Pty Ltd, the Australian prepaid card market has a vacuum, which, to date, no player has stepped in to fill.

With venerable names in financial services meeting an ignominious end through forced acquisition or otherwise, a tumultuous stock market and unprecedented government action, it’s only fitting that the prepaid and stored value card industry ask, “What about us?”

It's time to submit your nominations! The annual Paybefore Awards, now in their third year, are the oldest and most prestigious awards to recognize excellence in the worldwide prepaid and stored value card industry.

A coalition of consumer groups, headed by Consumers Union, recently sent a letter to the chairwoman of the Federal Deposit Insurance Corporation, urging the government agency, known for insuring bank accounts, to protect deposits held on network branded prepaid cards.

On Sept. 11, Consumers Union, the non-profit publisher of Consumer Reports, sent a letter to the Federal Trade Commission, petitioning the agency to establish measures to protect consumers who hold gift cards from bankrupt retailers.

Paybefore asked several payments industry attorneys if companies in prepaid—both closed-loop and network branded providers—should be concerned that the FTC is being drawn into the prepaid card arena.

Health care cards have become an increasingly attractive, if a somewhat complex, segment of the prepaid market—leaving program developers to ponder how they can create a successful business plan that won’t die on arrival.

It wouldn’t be unusual to find Mark Troughton hovering near a retail display of Green Dot card products and rearranging the stock if necessary.

Working for Discover Financial Services is more than a job for Gloria Colgan. They are partners.

Recently, Paybefore learned that a group of retailers from around the country was forming a trade association to educate the public on closed-loop gift cards. Carman Wenkoff, president of Value Pay Services, which runs SUBWAY Restaurants’ gift card and loyalty card programs, and Tom Boucher of Best Buy have informally led the group during its incubation period.

This June, MasterCard Worldwide announced it would partner with Obopay Inc., a mobile payments company based in Redwood City, Calif., to introduce a service that enables MasterCard prepaid, debit and credit cardholders to send person-to-person remittances to other MasterCard cardholders within the United States.

NetSpend Corporation, a provider of general purpose reloadable prepaid cards based in Austin, Texas, filed suit in Travis County Court last month against founders Roy and Bertrand Sosa and their new ventures.

On Aug. 13, South Coast Plaza, a 280-store luxury shopping center in Costa Mesa, Calif., announced it had discontinued its American Express-branded gift card program and would be returning to paper gift certificates.

Paybefore talked to Ross about his tenure in government, the switch to the private sector as well as the key compliance issues facing the prepaid industry and the misperceptions that some in government and law enforcement still have about the products.

On July 21, E-Gold Ltd., an Internet-based digital currency business, and its three owners pleaded guilty in federal court to criminal charges relating to money laundering and the operation of an illegal money transmitting business.

In Viewpoints, prepaid and stored value card professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

The turmoil in the financial services industry has attracted the bright lights of congressional hearing rooms and intensified scrutiny from both Washington regulators and Wall Street analysts.

Coinciding with the recent announcement of a 28 percent jump in its second-quarter earnings, Visa Inc. also announced at the end of July that its Visa Money Transfer service would become available to millions of additional cardholders in the Asia Pacific region.

One of Frank D’Angelo’s first jobs placed him on the trajectory of “cutting edge.” He never stepped off course.

Indigosolutions (UK) Ltd., a new U.K.-based company, launched its first prepaid card last week, which it says, will turn the travel card market on its head.

Citigroup, Inc. and Green Dot Corporation last week announced a strategic partnership to market Citi-branded general purpose reloadable prepaid cards and network branded gift cards to consumers.

While spend on prepaid cards in Europe is expected to reach US$164 billion by 2010, according to MasterCard-sponsored research, prepaid card growth in Europe and elsewhere still faces key challenges—namely consumer awareness, patchwork regulation and market disparities from country to country—industry experts said during the Prepaid08 Expo & Conference in London last month.

After two years in operation, the Network Branded Prepaid Card Association has become an important industry voice, with 37 members that span the prepaid value chain.

Bank of America and Visa announced last week that the United States Olympic and Paralympic teams will be taking a specially developed prepaid card with them to the 2008 Olympic Games that begin in Beijing on Aug. 8.

The ongoing battle between merchants and the card payments industry over how interchange rates are set reached another milestone earlier this month as the U.S. House of Representatives’ Judiciary Committee approved a version of the Credit Card Fair Fee Act of 2008 and sent it on for vote by the full legislative body.

John Barbella, senior vice president of product development for The Bancorp Bank, spent his first few months on the job doing homework.

While some prepaid players are concerned about the impact of state and federal regulation, few can speak on the issue with the authority of Marilyn Barker.

Though Tim Coltrell leads a company dedicated to serving a segment of society that has been ignored by, or chooses not to be a part of, the banking system, he views AccountNow and its customers as being in a banking relationship.

NetSpend Corp., a provider of general purpose reloadable prepaid cards, and Skylight Financial, Inc., a supplier of corporate payroll and government benefit cards, announced on June 26, that they signed an agreement to merge the two companies.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

Scenes from the job market: A young marketing manager takes a pay cut to join a start-up because he believes the job holds greater long-term opportunity potential than his current position. An equally talented product manager leaves his employer of 10 years for a new job. He resigns six weeks later.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

The past few years have seen a shift from gift cards as replacements for paper gift certificates of old to gift cards becoming as ubiquitous as automobiles—even more if you compare the actual numbers.

When Paul Daffin took the helm of the operations team for TSYS’s prepaid services division in February 2008, he was already accustomed to trial-by-fire working conditions.

When Clayton “Nick” Nicholas was looking for an entrepreneurial opportunity, he didn’t draw his inspiration from the commanding officers he served under during an eight-year stint in the U.S. Army, his Harvard graduate business school professors or colleagues at IBM, where he cut his corporate teeth.

Altair Financial Services, the London-based company which serves as a transaction processor and program manager, has been at the forefront of prepaid growth in international markets.

A special Student Edition Wal-Mart MoneyCard, a reloadable prepaid Visa, aimed at college students and their parents, hit more than 3,100 stores this week, the Bentonville, Ark.-based retailer tells Paybefore.

A leader in the global prepaid industry, Anabel Pérez views her role from all angles: financially, strategically, tactically and even emotionally.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

Marketing in the financial services industry can be a tough job. Let’s face it, this industry is perceived as complicated, conservative and confusing to most people.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

The subprime mortgage debacle has brought to the forefront practices by originators and lenders that, at best, only can be described as puzzling and are, more likely, simply exploitative.

TxVia is taking prepaid processing to the next level, rethinking prepaid processing from the ground up and introducing a new generation of technology.

When young Mexican immigrants Roy and Bertrand Sosa founded NetSpend in 1999 with $750, they could not have foreseen that nine years later they would be at the helm of a $100 million venture capital fund to help other start-ups succeed in serving the underbanked.

Collaboration among and within financial institutions as well as with law enforcement is critical, according to panelists and participants at the Federal Reserve Bank of Chicago 2008 Payments Conference.

Last week at the 3^rd Annual Underbanked Financial Services Forum, the Center for Financial Services Innovation revealed initial findings of groundbreaking research that examined the underbanked market in the United States.

After a record-breaking $19.1 billion initial public offering in March, preceded by a several-month-long quiet period, and a leadership change in its prepaid division, Visa Inc. may appear to be in flux.

When Steve Verleye joined Coinstar Inc. to manage its prepaid product category, he came with a well-rounded resume.

The success of Dublin-based 3v Transaction Services Ltd. is rooted in the proliferation of ecommerce giants like eBay and PayPal, an aversion to using debit cards online and Ireland’s dramatic turnaround over the last decade and a half.

About 3 million payroll cards were issued in 2007, and that number is expected to reach a little more than 4 million by 2009, according to Mercator Advisory Group estimates.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore. 

One of the most important individual-level impacts of globalization has been the massive growth of international remittances sent by migrant workers to family and friends abroad.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

As a Latin American studies major in college, I recall reading one of my favorite short stories introduced by my favorite Spanish professor.

While retail is often considered the giant of gift card distribution, banks—large and small—are seeing successful sales growth for gift cards in their branches.

In May, Pizza Express, a London-based casual-dining restaurant chain, launched a promotion tying the “chilled” pizzas it sells through retail supermarkets to a gift card offering, which it hopes will drive awareness of its gift card program.

Reload Networks Revisited May 2008 Send to a Friend | Request Reprint | Printable View What’s New with Visa ReadyLink, MasterCard rePower and Other Reload Networks By Loraine DeBonis, Executive Editor After splashy debuts last winter—along with announcements of major p

More than 80 percent of network branded gift cards are given among family members and friends, according to a survey released today by the Network Branded Prepaid Card Association (NBPCA).

When a new cultural phenomenon comes along, it doesn’t take long for companies to assess its commercial potential and jump on board.

To support the growing information needs of Paybefore’s readership, I’m pleased to announce the launch of the Paybefore iq Report, which—effective with this issue—becomes a quarterly addendum to Paybefore.

On April 28, Denver-based First Data Corp. announced that it would acquire InComm, a top distributor and marketer of prepaid cards in retail locations.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

We believe the prepaid sector can and should play a major role in working with government to provide an “assets and transactions account” (ATA), a low-cost, high-value transaction account that facilitates savings for financially underserved consumers.

According to Chris Quinlan, founder and CEO of Ohana Companies, consumers are frustrated with the traditional model of product rebates.

Six words changed dramatically the course of Dan Henry’s career: “Mr. Gorbachev, tear down this wall.”

Straddled between two worlds, Dan Horne monitors the prepaid industry through his deliberative research and through a less scientific lens—his students.

Laura Kelly, senior vice president for global prepaid solutions at MasterCard, and her team developed a program that offered the functionality H&R Block desired and would fulfill one of MasterCard’s primary missions: innovation.

G-T-P Group Ltd isn’t the largest or most experienced prepaid processor in the fledgling U.K. prepaid market, but CEO Helen Child has her sights set on being the best.

In April, Columbus, Ga.-based payments processor TSYS announced the launch of n>genuity in action: n>gen, which the company describes as “a new business paradigm that makes it easy for TSYS clients to efficiently and thoroughly manage all their complex payments-related business needs with point-and-click ease.”

Payment professionals gathered in Las Vegas recently for the 2008 Electronic Transactions Association Annual Meeting and Expo.

After a year of strong M&A activity and sizeable investments in the prepaid card industry, the current state of the economy has left some wondering what the future will bring.

U.K. Advancing in Prepaid but (Some) Retailers Remain Wary

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

On April 15, the U.S. House of Representatives passed a bill (HR 5719) proposed by Congressmen Charles Rangel (D-N.Y.), The Taxpayer Assistance and Simplification Act of 2008.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

The VA in the U.K. is the industry trade association representing gift vouchers and gift cards.

Presentation Is Everything Retailers Turn to Specialty Printing and Packaging to Move More Gift Cards April 2008 Send to a Friend | Request Reprint | Printable View By Loraine DeBonis, Senior Editor In the increasingly crowded gift card marketplace, retailers are

David Jones, who is CEO of PAYjr, Inc. and Card Lab, Inc., says that prepaid is where the growth and opportunity are, which is why he founded two companies—both with prepaid at their core—that aim to solve consumers’ problems.

A little more than a month after Meta Payment Systems Inc. announced iAdvance to help prepaid cardholders access small-dollar loans and potentially improve their credit scores stateside, Advanced Payment Solutions (APS) introduced a similar card enhancement in the U.K. Creditbuilder, which advances £59.40 ($117) to APS's cashplus prepaid gold MasterCard cardholders, is the first service of its kind in Europe, according to APS.

Working in financial services was not Ron Hynes’ first career choice. What he really wanted to do was play second base for the Boston Red Sox. “That was my dream job, like most young kids growing up in Maine,” Hynes, 43, says. “At some point, I guess I realized that wasn’t going to happen.”

With the battle over interchange pitting merchants against banks and payment networks, a report released last month by Waltham, Mass.-based Mercator Advisory Group suggests that merchants sponsor cards that ride the rails of the open-loop network, so they too can earn money on interchange, broaden their brands and even extend category leadership.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

Retailers pressing for lower fees tied to acceptance of plastic payments are potentially painting themselves into a corner by implying that lower fees will lead to lower consumer prices. 

John D. Chaney, chairman and CEO of PreCash, has witnessed the emergence of a paperless society from its beginnings, when paper—and inefficiency—dominated financial services.

If you are marketing prepaid cards to consumers, one of your chief concerns is how to develop a long-term relationship with your customers.

The best use of a network branded prepaid or stored value card in a consumer promotion program.

Just about everyone in prepaid will agree that there is significant profit potential. But few are willing to say that their company is able to operate profitably—today.

The best use of a network branded prepaid card in a CDHC program.

Th best use of a network branded prepaid card in a consumer program.

The best electronic and/or printed materials design and presentation for a network branded prepaid or stored value card program.

The best use of a network branded prepaid card for general purpose spending.

Prepaid card use appears to be lower than past estimates have indicated, according to a new report released March 25 by the Federal Reserve.

Chicago-based Card Activation Technologies, Inc. (CAT) is suing major retailers, including Barnes & Noble, Aeropostale, OfficeMax, TJX Companies, Sears and Walgreen Co. for infringement of its patent related to gift card activation and processing.

As Chief Financial Officer and Chief Operating Officer of Trycera Financial, Inc., Bryan Kenyon’s work is transparent. By law, it must be.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

During the past few years, sales of retailer-branded gift cards have soared. Once novel, gift cards have become popular, in part, because they are convenient for all occasions: Christmas, birthdays, graduations, baby showers, housewarmings or as a "thank you," etc.

The best sales promotion and implementation by a retailer.

The best consumer marketing campaign for a network branded prepaid or stored value card program.

The best use of a network branded prepaid or stored value card in a corporate incentive program.

The best use of a network branded prepaid card by an employer or third-party service for distribution of payroll

It is my privilege to have been asked to make opening remarks to such an amazing group that includes more than 2,000 people who are the foundation of an entire industry—the fastest growing and most exciting segment of card-based payments.

Select season ticket holders for the Manchester City Football Club are getting a taste of contactless technology and prepaid cards this season.

Since specialty electronics retailer Sharper Image Corp. filed for Chapter 11 bankruptcy on Feb. 19, numerous media reports warned gift cardholders that their cards were worthless.

On March 6, Rep. John Conyers, D-Mich., chairman of the House Judiciary Committee, along with Rep. Chris Cannon, R-Utah, introduced legislation in the U.S. House of Representatives that would regulate interchange rates merchants, or their acquiring banks, pay payment card issuers to accept network branded payment cards, including prepaid, credit and debit cards.

In this issue of Paybefore Update, we continue our coverage of the 2008 Prepaid Card Expo, March 3-5 in Las Vegas.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

The growing success of the prepaid market has led inevitably to new entrants scurrying to gain market share and find niches that enable long-term viability.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

While it may just be a piece of plastic that MasterCard makes available to its partners, a prepaid card is a powerful piece of plastic that delivers new value to all members in the value chain.

A rising star at IBM, Mark Simon arrived in New York City from his native England at a time of great uncertainty—for IBM and the United States.

The prepaid and stored value card industry was honored on Tuesday evening, March 4, in Las Vegas during the second annual Paybefore Awards.

The best use of a network branded prepaid card in a claim card program.

Sixteen individuals were recognized for their contributions and personal commitment to founding the Network Branded Prepaid Card Association, the trade group that promotes a successful environment for prepaid cards that carry a major payment brand such as American Express, Discover, MasterCard or Visa.

Long before business incentives were available on plastic, Darryl Hutson was working on the concept.

Don Kingsborough, Blackhawk Network’s founder and CEO, revolutionized consumer shopping behavior for prepaid cards with the company’s Gift Card Mall destinations.

Judith Rinearson, a recognized authority on stored value and prepaid products, is a partner at Bryan Cave LLP in its New York City office.

The best use of a network branded prepaid card in a corporate program.

The most innovative product or service for the network branded prepaid or stored value card industry.

Best Retail Gift Card Program The best use of a network branded prepaid or stored value card in a retail gift card program. March 2008 Send to a Friend | Request Reprint | Printable View Best in Category: Simon Brand Ventures and Simon Property Group for the Simon Giftca

Paybefore asked Maher to discuss the background and development of the AML recommended practices and to explain their importance to the prepaid industry.

The appointment of Todd Brockman, former global head of prepaid at Visa Inc., as president of Galileo Processing Inc. signals a strong commitment to growing the business of the Salt Lake City-based processor.

In 2007, Wal-Mart Stores Inc. undertook a nationwide launch of its general purpose reloadable Wal-Mart MoneyCard and announced plans to have 1,000 MoneyCenters open by the end of 2008.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

Most economists are predicting that the U.S. economy is entering a period of much slower economic growth, if not an outright classic recession, this year.

Start-up Branded Marketing LLC is still a month away from launching its first prepaid products, a line called Pr1macard, but its Senior Vice President and General Manager Duane Jacobsen is confident that the value-added benefits the company is integrating into its cards will stimulate adoption and create stickiness that leads to loyalty and long-term use.

Italy is known for art, fashion and great food. But BancoPosta, the financial services unit of Poste Italiane, the Italian post office, is gaining recognition for one of the most successful general purpose reloadable prepaid card programs in the world.

The Utix Group, Inc., a Burlington, Mass.-based corporate and consumer incentive provider, has discontinued all activities and ceased operations, according to an entry, dated Feb. 7, on the company’s Website, www.utix.com.

Sioux Falls, S.D.-based Meta Payment Systems is rolling out a new product, iAdvance, which allows prepaid cardholders to apply for a credit line up to $600.

On the morning of Jan. 1, 2008, supermarkets, discount stores and other “non-health care” retailers across the country were able to accept prepaid health care cards for eligible medical goods thanks to the efforts of the Special Interest Group for IIAS Standards (SIGIS).

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

Hellooooo! … Yessss!! ... We are here now!!!

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

What if there’s a way to bring prepaid products to millions of new consumers, with the help of the federal government?

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

“The Emperor’s New Clothes” contains a powerful metaphor for the long-revered credit card industry and the child-like “observer,” the prepaid card industry.

Payment processor i2c has developed an open architectural prepaid and card management processing platform that enables clients to integrate various value-added services. In recent months, the company introduced its MCP Index (MCPI), which provides clients with direct comparisons of their programs’ performance to other card programs as well as the prepaid market as a whole.

In recent weeks, Comerica Bank has been working closely with U.S. Department of Treasury officials to prepare for the launch of the first nationwide federal benefits program to be delivered via prepaid cards. The massive undertaking has the potential to put millions of network branded prepaid cards into the hands of federal benefit recipients, boosting the prospects for prepaid to enter the mainstream of consumer financial products.

Chinese consumers are coming to America. At least that’s the goal of Alipay, the Internet payment method used by 56 million users in China. The alternative payment method enables registered users to make purchases at online merchants that accept Alipay.

What Mobile Means for Prepaid How Cell Phones Can Help Card Providers Gain and Retain Customers and Reduce Costs February 2008 Send to a Friend | Printable View By Loraine DeBonis, Senior Editor Prepaid card program managers, processors and issuers are all looking for

Maybe the textbooks her parents wrote on mass communication triggered her interest. Perhaps the 50-pound TV camera her father lugged around, long before such technology became mainstream, sparked her curiosity.

Only a person with Sarah Grotta’s energy would actually enjoy living and working in two different time zones.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

It seems the gift card just can’t get a break in the consumer press.

Banks have remained largely on the sidelines when it comes to offering general purpose reloadable (GPR) prepaid cards to the 36 million underbanked consumers in the United States, according to a December report by research and advisory firm Celent LLC.

On Sept. 12, 2007, Fidelity National Information Services (FIS) closed its $1.8 billion acquisition of eFunds Corp. The acquisition was a way for FIS to enhance its debit and prepaid offerings and provides a major boost to its existing processing business, which caters primarily to the mortgage services industry and small and midsize banks globally.

For years, the retailer model for offering gift cards to customers includes paying a third party to process gift card transactions. Often these third parties, such as Chockstone, Inc. and First Data Corp.’s ValueLink, also manage gift card programs, providing services that range from accumulating transaction data and accounting for gift card funds to handling gift cardholder inquiries and more.

The Network Branded Prepaid Card Association (NBPCA), a non-profit trade organization that supports the growth of network branded prepaid cards, announced changes to the association’s management this week.

Don’t be surprised if you see Jon Palmer’s name splashed across a hard cover at your local bookstore someday. He has a story to tell.

E. Craig Keohan recently sent his personal information to the Secret Service for the second time. As a guest of the White House, he needs special clearance.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Paybefore.

The Wall Street Journal carried an op-ed piece last month by Secretary of the Treasury Henry M. Paulson who writes, in part, regarding the Bush administration’s solution for the current state of affairs in mortgage lending:

Forty-five percent of all prepaid cards are sold directly to consumers, and prepaid mall distributors represent an increasing percentage of this volume, according to a recent report from Mercator Advisory Group, “Measuring Prepaid Mall Penetration and Analyzing the Adoption of Four Prepaid Distribution Models.”

Corporate Incentives: Three Ways to Pay Incentive Providers Discuss the Pros and Cons of Closed-Loop, Filtered-Spend and Open Network Branded Prepaid Cards January 2008 Send to a Friend |   Printable View By Paybefore Staff As prepaid cards become increasingly p

Nomad Payment Systems’ open-loop prepaid technology, featuring Chip and PIN capability, is being used in many of the U.K.’s major retail locations. The London-based processor consists of two operational divisions, Nomad Payments whose focus is processing, and Nomad Cortex, which licenses the Nomad Cortex software.

In August of 2004, TSYS made the strategic decision to expand its footprint in prepaid by acquiring Clarity Payment Solutions, an entrepreneurial prepaid processor based in New York City. Prior to the acquisition, TSYS had been processing open- and closed-loop gift and general purpose reloadable prepaid applications since the late ’90s.

Scott Scovel is proud to call American Express the largest issuer of network branded gift cards.

Gary Lott doesn’t worry when his 16-year-old daughter uses plastic to shop online. With a TotalPay Card, she is limited by how much cash is loaded onto the card.

Minneapolis-based prepaid card provider Ready Credit Corporation and Macy’s, Inc. have teamed up to offer customers an instant-issue Macy’s ReadyCARD prepaid MasterCard in select Atlanta and Houston stores.

Three months after Capital One Financial Corp. entered into an acquisition agreement with NetSpend Holdings Inc., to acquire prepaid card company NetSpend, it announced the two companies have agreed to terminate the agreement.

Prepaid Media’s Executive Profile Series: Dave Wilkes, Head of Strategic Alliances, Galileo Processing

Prepaid Media’s Executive Profile Series: Jeff Fritz, Founder and CEO of Lighthouse1

MasterCard is targeting three main audiences for the cards: student travelers, families and international travelers.

First Data’s SVP Talks about the Significance of End-to-End Support

Metavante’s President of Issuing Solutions, Discusses the Company’s New Strategy and the Growth Opportunity in Prepaid

The prepaid processor is significant to the success of any prepaid card program, and choosing the right processor requires careful consideration.

Prepaid card companies often describe themselves as one-stop shops. In other words, if you want a prepaid card program, they handle everything from getting an issuing bank and fulfilling orders to fielding customer-service calls and processing transactions.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

Consumer Reports has taken yet another swipe at gift cards. And this year, it’s dedicated some serious dollars to the effort with a full-page ad in The New York Times that ran on Tuesday, November 13, that attacks retailer-branded gift cards.

Prepaid processing has proven challenging for many traditional credit and debit processors. They have struggled to integrate prepaid into their existing platforms, creating opportunities for a new group of payments processors not burdened by legacy technologies—like Utah- based Galileo Processing, Inc.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

It would’ve been a brave person in 1996 that likened the pioneering entrepreneurial work of Nancy Gensburg and Carol Jacobsohn of Swift Gift (now Swift Prepaid Solutions) in launching one of the first network branded gift cards to the onset of Chaos Theory.

Flexibility and the ability to listen are two skills Sheree Herr has leveraged throughout her career. For Herr, the road to her position as Vice President of Licensing for American Express Incentive Services (AEIS) began with honing these skills and has continued by effectively translating them along the way.

Highmark Inc., a Pittsburgh-based health insurance provider, has launched a new gift card designed to help recipients pay for health-related expenses, including co-pays for doctor visits, prescriptions, vision care, dental care, gym memberships and elective procedures.

Just in time for holiday shoppers, online heavyweights Amazon.com and eBay each have launched gift cards available in retail stores.

Like a growing number of retailers today, Walgreen Co., has embraced the gift card mall as a way to offer its customers an array of gift card products. But unlike other retailers, Walgreens has implemented its 104-brand Gift Card Express without the help of a third-party distributor.

Jamie Spriggs honed an appetite for entrepreneurship at an early age.

The oldest of four boys, he watched his father, an AT&T operations manager, agonize through several corporate cut-backs. Spriggs knew he wanted to be his own boss, in charge of his own destiny.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

For retailers, Christmas is already—at least in part—a fait accompli. Inventory is on hand, systems are in place, staffing and training are nearly set. So, too, the retail analysts have begun to fret about holiday performance.

Sales of both closed- and open-loop gift cards have ballooned over the last 10 years, with nearly $64 billion loaded onto the cards in 2006, according to Mercator Advisory Group estimates.

ItzCash Card Ltd., India’s first multipurpose prepaid card provider, last month received US$10 million in international private equity funding from Matrix Partners India and co-investor Intel Capital. With consumers and investors taking notice, ItzCash plans to expand its reach in India and develop its card into a cobranded and, maybe even contactless, bank-issued product.

Chase Paymentech Solutions, LLC is partnering with Green Dot Corp. to offer its merchants that process online and via the phone the ability to accept Green Dot’s MoneyPak for online and telephone payments.

As Vice President of Consumer Products for Visa Latin America and Caribbean Region, Vicente Echeveste is immersed in helping expand two important segments for prepaid products: comfortable wage-earners who buy gift cards, and unbanked customers who rely on subsidies.

When Alfred Pepping first began working in the prepaid card business in Latin America, he often saw confused expressions from prospective clients.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

All forms of value exchange—from cash, checks and wire transfers to ACH payments and card-based products—are subject to fraud and money laundering.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

I’m not one who believes that any single individual is responsible for the new payment products and processes that have evolved during the past several decades, resulting in innovations that include credit cards, debit cards, ATMs and now prepaid cards.

The industry’s leading prepaid processors inform Prepaid Media that "thousands" of small and mid-sized financial institutions are lining up to introduce network branded prepaid cards.

As the ATM market matures, ATM owners are looking for creative ways to increase revenue and consumer convenience at existing machines. Enter gift cards. In recent weeks, four companies have announced two different pilots in which ATMs are configured to dispense gift cards.

Prepaid Media spoke with three executives from leading investment banking firms and asked them about the state of and potential for future mergers and acquisitions in the prepaid card industry. They concur that the marketplace continues to be strong and poised for ongoing M&A–balancing proven growth and traction with significant unfulfilled opportunity–but acknowledge that a downturn in the market or unmet expectations of earlier acquisitions continues to pose a threat to the M&A environment.

With the holiday season in full swing, retailers are counting on gift cards to bring in significant holiday and first quarter revenues. However, thanks to the popularity of the gift card mall and specialty cards geared to a variety of occasions—including birthdays, Mother’s Day, weddings and more—gift card providers expect their cards to sell year-round.

CO-OP Financial Services, a Rancho Cucamonga, Calif., credit union service organization, will begin offering a reloadable prepaid card program to its 1,899 members in the fourth quarter. The reloadable cards will feature in-branch loading and reloading, direct deposit capability and online balance tracking. Visa- or MasterCard-branded, the cards will be usable for purchases and cash access at all CO-OP Network’s 25,000 surcharge-free ATMs around the country.

The September 12 closing of Fidelity National Information Services Inc.’s $1.8 billion acquisition of eFunds Corp. is part of the incredible M&A activity currently surrounding the financial payment and technology sector.

Prepaid Media spoke with ADP’s general manager of the TotalPay card program, Gary Lott, to find out what the company has learned after four years in the payroll card business and how payroll cards have and will continue to evolve.

With advances in electronic payments acceptance at the point of sale in the health care industry, and increasing health care account enrollment, prepaid health care cards may finally be poised to take off in a big way.  Since 2002, Evolution Benefits’ clients have been using its real-time auto-substantiation technologies to make paying for health care purchases at the pharmacy more convenient for consumers, and to reduce administrative costs associated with the reimburse, and receipt submission cycle known as “pay and chase.”  Looking forward, the Connecticut-based company sees new applicability for its patented technologies, substantiating card transactions for different health plans, and providing a third party adjudication benefit to its clients. 

Decisions relating to the amount and type of fees charged to consumers for prepaid general purpose spending cards are amongst the most critical–they can impact the success of a portfolio from many perspectives. From perceptions of fairness on the part of consumers to the economic results of customer acquisition, retention and usage, program managers have continually sought to develop pricing models that satisfy the consumer while being attractive to their bottom line.

With the December 31, 2007 deadline to implement an information inventory approval system (IIAS) on the horizon, an industry consortium of retailers, prepaid card program managers, acquirers, processors, and the card brands are working to insure that the FSA and HRA cards of three to four million household accounts will continue to be accepted for payments at supermarkets, mass merchants, and other non-medical locations nationwide.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

All of us associated with the global payments industry owe a debt of gratitude to a group of 26 bankers, retail executives, educators, federal and state bureaucrats, and regulators known collectively as the National Commission on Electronic Fund Transfers.

Prepaid Media’s Executive Profile Series: Gary Dinkin, Founder and CEO of SmartClixx.

Prepaid Media’s Executive Profile Series: Bob Baker, Vice President of Financial Services, Coinstar.

Payroll cards have become increasingly popular with employers as a way to reduce payroll check processing costs and more economically pay employees who lack checking accounts

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

At the NBPCA, we’re constantly monitoring the types of press coverage that prepaid cards are getting. Around the holidays, it’s always gift cards, of course. Last spring, there was a great deal of coverage of rebate cards. And, right now, teen cards seem to have caught the attention of the media.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

For someone in payments, I had the most amazing and unexpected experience the other day—in a New York City taxicab: I paid my fare with a credit card. But that’s not the amazing and unexpected part.

Scott Galit, EVP of Meta Payments Systems is an early pioneer in the prepaid card industry.  A former investment banker at Donaldson, Lufkin & Jenrette (DLJ), he founded the prepaid processor Solspark, which was acquired by Concord EFS in 2002. 

In a new twist on claim cards, the United Kingdom’s largest direct travel insurance provider, Insure and Go Insurance Services Limited (InsureandGo), recently announced that it has launched a prepaid card that doubles as both a claim card and travel card.

Federal law enforcement agencies worry that open system prepaid cards are ideal for shuttling illicit funds across our border because of the relatively small physical size of the cards and their potential ability to provide access to large sums of value.

In Viewpoints, prepaid and stored value professionals share their thoughts and perspectives on the industry. These are not necessarily the viewpoints of Prepaid Media.

If you love a business challenge, then you’ll love prepaid. Why?  Because the prepaid landscape is dynamic and complex--with the fastest growing and most expansive product line in payments.

Converting insurance claim checks to plastic cards has long been viewed as a likely and lucrative proposition for both the insurance and prepaid industries alike.

Prepaid Media’s Executive Profile Series: Don Kingsborough, President and CEO of Blackhawk Network.

Prepaid Media’s Executive Profile Series: Talbott Roche, Senior Vice President and Co-founder, Blackhawk Network.

In mid-June, Laura Kelly was named senior vice president of global prepaid product development and management for MasterCard Worldwide. In this, her first interview in her new position, Kelly shares her vision for MasterCard’s role in the prepaid card industry.

Some view prepaid cards as standalone financial services solutions whereas others see them as a stepping stone to credit along the customer lifecycle, starting with the addition of a line of credit to a prepaid card.

As a prepaid processor, issuer, or program manager operating in numerous prepaid card segments, it’s critical to make the right decisions on how far to deploy resources to develop capabilities for each product and vertical.

With the success and ongoing adoption of network branded prepaid cards for delivering Unemployment and Child Support payments, what’s the next big application for prepaid benefits distribution?

The $60.6 million acquisition of BankFirst’s prepaid card business, Stored Value Solutions (SVS), by Bancorp announced last week represents the latest in a string of acquisitions in the network branded prepaid card industry during the past 36 months.

Although the network branded prepaid card industry takes its responsibilities seriously to minimize the risk of prepaid cards being used in money laundering schemes, the potential for prepaid cards to be used this way is clearly on the minds of law enforcement and regulators—evidenced by a variety of recent publications and conference topics.

Wal-Mart’s recent announcement of the Wal-Mart MoneyCard, a general purpose prepaid card targeted to underserved consumers, has likely advanced the distribution and exposure of prepaid products in a way that few traditional financial services providers can match.

H&R Block Inc., the nation’s largest preparer of individual income taxes, may have found a niche in converting unbanked individuals into full-fledged bank customers through the use of prepaid cards–something that others, including leading banks, have struggled to do.

When retail gift cards emerged about a decade ago, they were a logical replacement for paper gift certificates.  Since then, the retail gift card market has seen consistent growth with sales exceeding more than $76 billion in 2006, according to the National Retail Federation.

The unbanked and underserved demographic presents significant potential for prepaid cards.  But the specific products that cater to this audience and distribution channels utilized by providers of prepaid cards are highly fragmented – payroll cards, general purpose spend cards, and remittance cards, are some examples.

Two recent Notices issued by the Internal Revenue Service have a potentially far-reaching effect on the use of prepaid health care cards.

The use of network branded prepaid cards to deliver rebates has grown in recent years (see related article Rebate Cards Gain Traction, February 2007).  To do so, prepaid cards have had to compete effectively with traditional check-based payments from a number of perspectives, not least of all, economics.

With the lure of more productive employees and lower health care costs, companies of all sizes are exploring effective ways to influence employees to participate in programs that encourage health and wellness. 

The Wall Street Journal’s May 4 article on the TJX security breach that has rocked the electronic payments world (“Breaking the Code: How Credit-Card Data Went Out Wireless Door—Biggest Know Theft Came From Retailer With Old, Weak Security”) is must reading for everyone working in the prepaid industry.

The Departments of Justice, Treasury, and Homeland Security released the “2007 National Money Laundering Strategy” on May 3. A follow up to the 2005 “Money Laundering Threat Assessment,”[1] the report creates “a robust strategy for combating money laundering, deterring criminals, and addressing areas vulnerable to exploitation,” says the DOJ press release announcing the report. It also supports statements in FinCEN’s 2006 annual report, recently released, indicating that FinCEN plans to establish a “regulatory framework” for prepaid cards, coordinated with federal banking regulators and industry.

When it comes to banks, prepaid cards appear to be an obvious fit.  For decades, banks have been the primary providers of debit and credit card products, which have become a significant income source for many.  

Prepaid cards are being used extensively as a means to allow individuals to access funds in a number of IRS-approved health spending accounts: flexible spending accounts (FSAs), medical savings accounts (MSAs), health savings accounts (HSAs), and health reimbursement arrangements (HRAs). Some integrated prepaid cards enable access to funds from a combination of the accounts.

As prepaid has emerged as an important and distinct segment of payments in recent years, the interest in the industry from the investment community—including private equity firms, venture capital funds, and strategic investors–has increased substantially.  These organizations are actively assessing the marketplace–conducting research and meeting with prospective companies–to determine where and how to deploy their capital.  Prepaid Media interviewed Pequot Ventures, and asked them to share some basics on their view of the industry and strategy for investment in the prepaid card market.

On April 17, 2007, Chockstone Inc., a provider of customer loyalty marketing programs and stored value solutions, announced that it acquired Peppercoin, a provider of card-based merchant loyalty programs and related consulting and analytical services.  Below is a case study prepared by Peppercoin on its Virtual Prepaid product.

On March 27, 2007, the Network Branded Prepaid Card Association (NBPCA) released results of a consumer survey it commisioned on health care (flexible spending account (FSA)) prepaid cards.

Kmart Settles with FTC on Gift Card Disclosure Charges March 2007 By Prepaid Media If there was any doubt that the Federal Trade Commission (FTC) is serious about exercising its consumer protection authority in the area of prepaid cards, that doubt was put to rest when the proposed settlement with Kmart

The estimated 40+ million Hispanic consumers in the United States are an attractive market for network branded prepaid cards, but persuading this segment—particularly its immigrant component—to switch from using cash has proven to be a difficult endeavor.  According to one prepaid card marketer who attended last month’s 2007 Prepaid Card Expo in Las Vegas, the Hispanic immigrant market is resistant to retail promotions, direct mail, and even targeted media advertising. 

Vicente Fox, the successful Coca-Cola executive turned political reformer, led Mexico as president from 2000 to 2006. His platform of social and fiscal reform peacefully broke the seven-decade stranglehold of Mexico’s Institutional Revolutionary Party, which had mired the country in corruption and malaise.

The scope of the network branded prepaid card category challenges the industry to effectively communicate the features and benefits of each card type to inform and incent consumer behavior.

This article by Donald Mosher & Joshua Kaplan analyzes the recently finalized amendments to Regulation E which extend the coverage of the regulation and the Electronic Funds Transfer Act to payroll card programs.

A preliminary search of the public files of the United States Patent and Trademark Office reveals hundreds of patents covering a wide array of prepaid and gift card systems, many of which have claims so broad they potentially reach numerous categories of cards.  Many additional applications are now pending.  With so many patents, it should come as no surprise that prepaid and gift card patent litigation has been on the rise.

Network branded prepaid cards run on the rails of existing payment networks as well as other historically available infrastructure. The past ten years have, however, seen a constant improvement in underlying products and services to meet the specific needs of prepaid cards – needs that are, in many ways, strikingly different from those of traditional debit and credit products.

For those just tuning in, Track data refers to the information encoded on the ubiquitous magnetic stripes found on the back of credit, debit, prepaid and other payment cards.  There are two types of Track data that are pertinent to the payment card industry, creatively dubbed “Track 1” and “Track 2.”

As the rate of adoption of prepaid cards has accelerated markedly in recent years, banks have been challenged to find their footing in this critical segment of card-based payments.

Prepaid cards have been part of the payment card landscape in the U.K. for some time, and they have recently started to gain momentum.  With the lead up to this current inflection point in the market, processors – as the primary technology enablers of prepaid – have experienced and expect to continue to experience changes in sustainable and competitive pricing of the various services they offer.

Q&A with Kevin McAdam, Head of Travel & Leisure, U.K. Post Office

The American Express Travelers Cheque pioneered the concept of prepaid travel more than 100 years ago.  Today, as the travel industry transitions from paper checks to prepaid cards, a look at the history of American Express Travelers Cheques offers some valuable insights.

Executives from three leading investment banking firms analyzed the current state of and potential for future mergers and acquisitions in the prepaid card industry. 

During the past year, delivering consumer rebates on network branded prepaid cards has begun to make significant inroads in the rebate fulfillment business.