PSCU Financial Services Issues Two New White Papers Documenting Trends in Prepaid Cards

St. Petersburg, FL, Feb. 8 – In the past, prepaid cards were primarily a gift card product for most credit unions. But times have changed, according to two white papers released by PSCU Financial Services. These papers, which are available free at the CUSO’s web site document explosive growth for reloadable cards, with sales up 52% in 2009 and money loaded onto the cards 46% higher for 2009 than previous years. By contrast, sales of gift cards were up only 15% and money loads increased just 17%.

“Reloadable cards offer the ability to strengthen existing relationships, deliver an alternative to potential new members who may not qualify for a debit card and are attractive for the underserved market. This product also enhances relationships through the recurring member contact required to reload the cards,” said Ron Silvia, VP Debit, ATM & Prepaid Products, PSCU Financial Services.

Driven by the economic downturn, members are turning to reloadable cards to help them stick to a monthly budget and as a money management tool for those struggling to obtain or maintain credit and debit cards, according to the white papers.

While reloadable cards offer attractive member benefits, they also deliver a strong revenue stream since these cards are not subject to gift card regulations in the CARD Act and new debit regulations. Gift cards remain a viable product, however, since they meet member needs for student and travel expenses as well as gift-giving.

Two papers on prepaid cards are available from the web site, “A Case for Prepaid Cards,” and “Achieving Profitability with Prepaid Cards.” The CUSO also offers free white papers on credit, debit, eCommerce, cards for small businesses and call centers.

About PSCU Financial Services

Based in St. Petersburg, Florida, PSCU Financial Services is the nation’s largest credit union service organization (CUSO) and serves more than 1,500 financial institutions

nationwide. As a non-profit cooperative, the company is owned by more than 680 member credit unions representing over 14 million accounts and 1 million online bill payment subscribers. Its Contact Centers handle more than 19 million inquiries a year.

Merry Pateuk
PSCU Financial Services, Inc.
800-932-7728
mpateuk@pscufs.com

Robette Brooks
CCS/PR, Inc.            
303-699-8861
rbrooks60@earthlink.net

PSCU Financial Services offers 24/7 member support through four Contact Centers: its Eastern operations center in St. Petersburg, Fla.; a Western operations center based in

Phoenix, Ariz.; and two call centers in Detroit, Mich. These Contact Centers perform member servicing and new member acquisition, cross-selling and automated lending solutions as well as support for debit/credit/prepaid cardholders and online bill payment subscribers.

Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, prepaid, bill payment and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As a leader in the credit union movement, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services. For more information, visit PSCU Financial Services’ website at www.pscufs.com.

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