The WSJ states that the card that is prepaid is booming and it is likely to achieve $200 billion in income by 2013. The largest card that is prepaid, Green Dot Corp., raised $160 million in its IPO final month and it has seen its stock increase by 30 % since that time. The second-biggest business on the market, NetSpend Holdings Inc., hopes to boost $200 million with its very own coming IPO. This can be great news.
Prepaid cards are utilized as debit cards, with all the huge difference that they’re perhaps not associated with a bank checking account, but they are drawing funds from a merchant account with all the issuing bank. Yet, they’re not charge cards either, due to the fact issuer just isn’t expanding a line of credit into the cardholder, that is really buying his / her cardвЂ™s spending limitation. After the stability can be used up, the card may be re-loaded.