The WSJ states that the card that is prepaid is booming and it is likely to achieve $200 billion in income by 2013. The greatest prepaid credit card business, Green Dot Corp., raised $160 million with its IPO final thirty days and contains seen its stock increase by 30 % ever since then. The second-biggest business in the industry, NetSpend Holdings Inc., hopes to increase $200 million with its own coming IPO. This can be news that is good.
Prepaid cards are utilized as debit cards, aided by the huge difference that they’re perhaps maybe not associated with a bank account, but they are drawing funds from a merchant account aided by the issuing bank. Yet, they’re not charge cards either, as the issuer isn’t extending a personal line of credit into the cardholder, that is really buying his / her spending that is cardвЂ™s restriction. After the stability can be used up, the card could be re-loaded.