We’ve been hearing that our entire lives. From parents, grandparents, you name it. Older and wiser voices are always encouraging us to hang on to any “extra” money we might come across, be it from a birthday or holiday card or just a shiny quarter found on the street. Alright, let’s be honest – you can’t even get much with a quarter anymore.
As a credit union, this is still sound advice you should be offering your members. Not that you should stand next to your ATM wagging your finger every time a member makes a withdrawal. However we’re in the throws of the holiday season and next up, you know what follows? Tax time. Along with the usual stress of organizing receipts and forms, there’s usually one shining light at that time of year: a tax refund!
We all know how tempting it is once we receive that little bonus (of our own hard earned money) from Uncle Sam to rush out and spend it on something fun. Only to come home to a backed up garbage disposal or leak in the ceiling, and feel that buyer’s remorse sink in for spending that refund so soon.
This is where your credit union can help by offering a good prepaid debit card program to store that refund. By loading all or a portion of their tax refund onto a prepaid card, members can keep that money separate from their other accounts. That way it’s there when they want to enjoy some of it, while still easily keeping track of it.
There are a number of programs available, so you will want to look for a few specific benefits when choose the right prepaid product for you members:
- Quick & Easy to Implement
- Low Cost
- Easy for members to load and manage
- Not connected to members personal information or accounts
Prepaid cards offer many benefits for credit unions and members even beyond tax season. They add an additional layer of security and convenience, especially to those members who might have untraditional jobs or income.
“Our members travel a lot and we don’t have a regular debit card, a prepaid debit card works for that purpose,” says Nektaria Felecos of Las Vegas UP Employees Federal Credit Union. Their credit union chose the CUMONEY® Everyday Spend card to serve the roughly 80% of their members working for Union Pacific Railroad. “In the past, members had to rely on money orders or checks to access their funds while away from the branch. Now they have the convenience of a Visa card for purchases, free bill payment, and access to cash at ATMs.”
Many prepaid card programs also offer a convenient free companion app so members can manage their funds 24/7 from the palm of their hand. Prepaid debit cards are the easy way for members to enjoy their refund responsibly and not spend it all in one place.