NAPERVILLE, IL (May 7, 2014) -- Credit unions are continuing to see significant increases in the adoption rate of prepaid debit cards over the last several years. Recent estimates indicate retail purchases to hit $200 billion in 2014.
Originally, prepaid debit cards were thought of as the non-banked or under-banked alternative to checking accounts, but it appears that is changing. More and more conventional checking account holders are using them as a complementing account rather than a replacement.
Traditional debit cards are linked to a consumer's checking account. This causes some consumers concern, especially when utilizing the cards to manage money, avoid fees associated with standard checking accounts, traveling, or for on-line internet purchases.
LSC, a premier credit union provider, is no stranger to the market and has also experienced compelling growth in 2014.
According to George Fiegle, COO of LSC, “So far this year we have seen phenomenal growth in our prepaid products with double-digit growth in both our CUMONEY℠ Everyday Spend, and Visa TravelMoney® re-loadable products, with reloads up 14.6 percent and 42.1 percent respectively, versus first quarter of last year.”
LSC has recently added two key enhancements to the Everyday Spend card, with the introduction of free bill pay and two new re-load options; Visa Ready Link® and its Auto Funding Feature.
Fiegle adds, “We are constantly evaluating our products to provide credit unions a competitive edge. By adding this new functionality, we have placed our products to be the most competitive in the market. That helps credit unions compete.”
The appeal of prepaid cards has made a shift to more everyday usage usually associated with debit cards and checking accounts; the market has had to make an adjustment to meet this new demand.
One concern has always been the safety and security of prepaid cards, and the liability associated with their use.
“One aspect of our programs that differentiates us from the competition – is that LSC manages and assumes any fraud risk” according to Fiegle, “a feature we know credit unions appreciate.”
To learn more about pre-paid card offerings visit LSC at www.lsc.net.
Note: LSC, formerly known as ICUL (Illinois) Service Corporation, is a credit union service organization offering a wide array of products and services and is dedicated to helping credit unions compete. Its products include credit, debit, pre-paid debit, portfolio development assistance, ATM services, mobile applications, and debt collection. It serves nearly 2,500 credit unions in 50 states. More information can be found at: http://www.lsc.net.