The Prepaid Press - January 2009 - (Page 1)

5 Minutes With Paul Amick Page 16 d Executive VP & Co-Founder, PhoenixSoft FREE Subscription for Prepaid Industry Professionals. Electronic and Print Versions Available www.prepaid-press.com/subscribe The Prepaid Press Real News, Right Now! REAL NEWS, RIGHT NOW! Dec. 2008/Jan. 2009. Volume 8. Number 1 2008 Milestones Take a read through this informative recap to learn who made the news this past year, and why. Page 8 d Economic Crisis Sharpens Focus on Stored Value Cards By Carol R. Van Cleef As the economic crisis continues to evolve, the prepaid/stored value card industry finds itself under increased scrutiny on several fronts. While observers remain generally confident about the industry’s long term prospects, the recent bankruptcies of several high profile retailers, among others, highlight concerns that have emerged about the safety of cardholder funds when the card-issuing retailer declares bankruptcy or the banking institution holding cardholders’ funds fails. Resolution of these concerns is important not only because of their potential impact on consumers, but also because they have become a key focal point in the debate on the relative merits of retail gift cards versus branded prepaid cards. These concerns also can significantly affect the costs associated with operating a prepaid card program, and may ultimately have an influence on the successfulness of both types of cards. Regulators Take The Lead. In response to some of the more pressing concerns about the safety of prepaid/stored value cardholder funds, the Federal Deposit Insurance Corporation (FDIC) and Federal Trade Commission (FTC) have acted recently. The FDIC clarified how its rules on federal deposit insurance coverage apply to cardholder funds and increased the amount of insurance coverage available to cardholders in certain circumstances, with an accompanying adjustment - upward - in the cost of such insurance. The FTC revised its consumer guidance on gift cards to provide more information about the potential effect a retailer’s bankruptcy may have on the Prepaid Wireless Providers Capitalize on Economic Downturn Where is prepaid wireless headed? Page 10 d value of the retailer’s gift cards. The FTC also committed to study further a detailed proposal by several consumer groups seeking greater protections for retail gift cardholders. Industry’s New Responsibilities. Following these regulatory actions, prepaid card programs – both retail and general purpose – now face the task of sorting through the details of the agencies’ actions and determining what, if any, program changes they need to make to ensure cardholder funds are appropriately protected and the potential financial implications for the program are properly addressed. Depending on the program, this task could involve a review of contractual agreements and bank documents, conversations with regulators and other actions. Consumer Groups Act As Catalyst. This latest flurry of regulatory actions appears to have been sparked by a broad offensive launched in late summer by several consumer-oriented organizations to Continues on page 20 Industry Veterans Weigh In on 2009 Prepaid Opportunities Prepaid Debit Cards Top List; Prepaid Wireless and Mobile Commerce Also Highlighted By Ingrid Ricks Retailers may have experienced their worst holiday season in decades. But the recession that has gripped the U.S. economy for the past 12 months and sent many business sectors plummeting is actually having a positive impact on some segments of the prepaid industry. While closed loop gift card sales have decreased, open loop debit card sales are soaring, and expected to continue to skyrocket in 2009 as traditional credit lines dry up and consumers shift their mindset from spending to saving. And though the wireless market is saturated, the improved features and pricing associated with prepaid wireless has given new life to the category – especially in light of the credit problems facing many consumers. To get a pulse on the best prepaid opportunities for 2009, we asked six industry veterans to weigh in on the subject. Here is what they had to say. Frank Squilla Senior VP of Sales, InComm We are lucky because the prepaid business functions in all economies – whether good or bad. There is an ebb and flow because of everything that has been added to the category. Where third party Continues on page 7 20533 Biscayne Blvd., Suite 1142. Aventura, FL 33180. US Tampa, FL Permit No. 3311 PRSRT STD U.S. Postage PAID http://www.prepaid-press.com/subscribe

Table of Contents Feed for the Digital Edition of The Prepaid Press - January 2009

The Prepaid Press - January 2009 Economic Crisis Sharpens Focus on Stored Value Cards Industry Veterans Weigh In on 2009 Prepaid Opportunities Contents From the Publisher: Ready for Change? The Prepaid Press Thanks its Editorial Advisory Board Regulatory Rundown 2008 Milestones Prepaid Wireless Providers Capitalize on Economic Downturn Prepaid Telecom in Brief APCC Services Settles With Calling Card Providers Boost Mobile Offers All-in-One Prepaid Package SonarTel Prepaid Customers Can Use Accounts in More Countries BillSoft Selected by Integra Telecom Pingo Adds PC “SoftPhone” Calling kajeet, the Cell Phone Service for Kids, Wins Award Prepaid Wireless Roundup The State of Prepaid Technology: Wholesalers & White Label Services New Millennium Releases Wireless Survey Results 5 Minutes With Paul Amick, EVP & Co-Founder, PhoenixSoft Millions Could Cut Cell Phone Bills in Half New Virgin Poll Reveals Buying Habits The Legal Line BioPay Expands Offering for Underbanked IDT to Sell European Prepaid Payment Business iPayStation Launches Network for Distributor Stored Value Solutions Appoints New VP Cellular South Offers Mobile Banking for Regions Bank Javelin Research: Processor Important in Prepaid MiCash Announces New Prepaid Debit Card Monitise and eCommLink Partner Platamovil Selects PhoenixSoft’s Cirrus Softswitch Prepaid Market Forecasts to 2011 Payments & Processing in Brief Prepaid 101: Gift Cards SCA’s PrizeSuite Enables Promotions MT&L Offers Gift Card Removal and Destruction Heartland Payment Systems Acquires Chockstone Amex and Rymax Offer Gift Cards TransCard Announces Corporate Gift Card Website Gift Cards & Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - January 2009

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.