General Spend Prepaid Cards: Ouch, That Smarts!


Thursday, February 5, 2009

We got a call from a business owner who found us via web search (we love to hear that!). He is currently using a general spend reloadable prepaid debit card product to manage petty cash. General spend cards service the "underserved" or "unbanked" community. Which means, they provide a card option for consumers who do not have a bank account and/or are unable to get a credit card. General spend cards are a bad option for business owners, here are a few reasons why:

  • Transaction fees. They charge a fee for every transaction.
  • Load fees. This particular business owner told us he was paying $5.00 for every card load. He says, "that is just not economical!"
  • Cash access. General spend cards are for consumers that need ATM and cash access.
  • No transaction oversight. Some cards offer a website for the cardholder to review transaction and balance history. But, what about the business owner? No access to transaction history.
On the flip side, we can help this business owner by offering him:
  • No transaction fees. Use the card as often as needed.
  • No load fees. Add and remove money from cards as much as you want, it's free!
  • No cash access. We do not supply the cardholder with a PIN. The card cannot be used to get cash from ATMs, merchants or bank tellers. The card is for signature purchases only.
  • Spending oversight. Review every transaction for all cardholders using our administration website. The money belongs to the business and the business owner need to see where it's going - in real-time.
Our corporate reloadable prepaid debit card is the economical option for business owners who want to effectively manage petty cash. Leave the general spend cards for consumers.

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Posted by Pamela Kozak 

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