Second in a series. See also 5 Reasons to Offer Reloadable Prepaid Cards
Once you’re interested in offering a reloadable prepaid card to your customers (See 5 Reasons to Offer Reloadable Prepaid Cards if you want to know why), you need to go through the process of choosing a provider. There’s no universal right and wrong here, but remember to think about the following when you select a vendor.
- Consumer Fees. Fee structures vary dramatically, but the typical trade-off is in the per-transaction fee vs. monthly fee.
Here a quick snapshot of some of the programs out there today: - Store Compensation. You will typically earn some money from sale of the card, and then ongoing fees from card loads or monthly service fees. These payments vary wildly, both by provider and for the volume a store can drive.
- Settlement method. Some providers settle nightly, while others require a deposit which they deplete, then replenish periodically.
- Card Benefits. Some card programs offer savings features or other “perks” to cardholders. Make sure to ask about them and evaluate which are applicable to your cust0mers.
For more on Reloadable Prepaid cards, visit
http://www.alltrustnetworks.com/product/prepaidcard/tabid/61/default.aspx
There’s also more good information on the consumer experience at www.cfsinnovation.com
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