The Prepaid Press - March 2009 - (Page 16)

PAYMENTS & PROCESSING March 15 · 2009 - 16 Jobless Benefit Debit Card Usage Debated 30 States Currently Use Cards, 10 More In Process By Gene Retske In the face of rising unemployment, states have increasingly turned to debit cards to deliver jobless payments. To date, 30 states are using debit cards to pay unemployment benefits, with another 10 in the process of changing over to debit cards. With the growth in entitlement programs as part of the Obama stimulus program, the trend to debit cards is likely to continue. As we have previously reported, the U.S. Department of the Treasury began switching over to the cards for Social Security payments for those who cannot accept direct bank deposits in 2008. (TPP, January 15, 2008) The primary reason for the change to debit cards was cost. The Department of the Treasury estimated that up to $44 million could be saved by the use of debit cards over checks. InsurCard Provides Catastrophic Relief Solution First Insurance Company of Hawaii to Provide Prepaid Card WILMINGTON, DE (February 23, 2009) InsurCard, a wholly owned subsidiary of Service Network Design, LLC (SND), has joined with First Insurance Company of Hawaii to offer an instant issue prepaid card program for catastrophic relief. Through this partnership, First Insurance Company of Hawaii will be able to provide immediate relief to its customers in the event of an emergency. In the event of a hurricane or other major disaster, First Insurance policyholders will be eligible to receive funds to cover their immediate needs. Traditionally, the practice has involved issuing a check to a policyholder. The problem in many natural disasters is that there may not be anywhere for the policyholder to turn to cash his check. By using the Visa Prepaid Claims Card from First Insurance Company of Hawaii, issued by The Bancorp Bank, the insurer can provide immediate relief to its valued policyholders. “We believe providing a branded card to our policyholders when they are in need will greatly simplify a very difficult situation for them. The catastrophic relief card from InsurCard gives our policyholders immediate access to make purchases and simplifies their lives when they are in turmoil,” said Ben Bondroff, Vice President, First Insurance Company of Hawaii. “InsurCard is thrilled to partner with First Insurance Company of Hawaii to assist in disbursing funds more rapidly in the event of an emergency. The insurance industry is a unique fit for prepaid cards because the card can greatly expedite the claims process,” says J. Robert Mendte, President, InsurCard. Source: InsurCard (www.insurcard.com) The Bancorp Bank (www.thebancorp.com) First Insurance Company of Hawaii (www.ficoh.com) Metavante, Monitise Americas Launch Text Banking Enables Consumers to Use Text Messaging for Alerts and Balances PROVIDENCE, RI and MILWAUKEE, WI (February 25, 2009) Monitise Americas and Metavante have launched text message banking services. The service will allow consumers to use text messaging to obtain any-time balance information on their accounts. It also enables consumers to set alerts, to notify them when their balance is low or when their payroll deposit has arrived, for example. Metavante Corporation, a provider of banking and payments technology, is the first provider to deploy the new technology from Monitise Americas. Monitise Americas provides mobile money services using secure applications that consumers download to their cell phones. The company has added text message banking to deliver financial information to all mobile phone users, whether they have advanced, data-enabled handsets or more simple devices. “Text alerts have become mainstream for many consumer services today. Many of us already receive news alerts on our mobile,” said Lisa Stanton, chief executive officer of Monitise Americas. “Especially in this economy, consumers have told us that they want immediate access to their financial information. Mobile financial alerts will allow consumers to manage their money any time, anywhere, and I firmly believe that there is no better time to introduce this than now.” The integration of Metavante payments solutions -- including bill pay, prepaid and the NYCE Network -- with its mobile financial services creates a clear line of sight to mobile payments and commerce. This type of integration also creates the benefit of making mobile services available to virtually all account holders at a financial institution. “Metavante is committed to keeping our clients competitive by moving consumers to mobile banking,” said Frank D’Angelo, group president, Metavante Payment Solutions, and chairman of the board for Monitise Americas. “By enabling this text messaging functionality, we are making money management via a mobile phone available to virtually anyone, and making it easy for even reluctant consumers to engage with the idea of using their mobile phones to manage their finances.” Source: Monitise Americas (www.monitiseamericas.com) Metavante (www.metavante.com) States where such programs are planned or under consideration: Alaska is planning to issue debit cards through JP Morgan Chase, during the 2010 fiscal year. California has been researching debit cards since 2007 and hopes to have a system in place by 2010. Connecticut is reviewing bank proposals to issue unemployment debit cards for the state. Florida plans to solicit bids from banks that would issue unemployment debit cards. Idaho plans to solicit bids from banks that would issue unemployment debit cards. Maine is planning to issue unemployment insurance through debit cards. Massachusetts officials hope to replace unemployment checks with debit cards by July. South Carolina is in discussions with Bank of America and hopes to issue unemployment debit cards this year. Vermont has not entered any official discussions with banks, but is reviewing unemployment debit card programs. West Virginia has signed a contract with JP Morgan Chase to issue unemployment debit cards, and hopes to have the program in place by March. As of February 2009, states and the banks they use to distribute unemployment benefits through debit cards: · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Alabama (Regions Bank) Arizona (JP Morgan Chase) Arkansas (U.S. Bank) Colorado (JP Morgan Chase) Illinois (Illinois National Bank) Indiana (National City Bank) Iowa (Wells Fargo Bank) Kansas (Citigroup) Louisiana (JP Morgan Chase) Maryland (Citigroup) Michigan (JP Morgan Chase) Minnesota (US Bank) Mississippi (Comerica Bank) Missouri (Central Bank) Nebraska (US Bank) Nevada (Wells Fargo) New Mexico (Bank of America) New York (JP Morgan Chase) North Carolina (Wachovia) North Dakota (US Bank) Ohio (US Bank) Oklahoma (Oklahoma) Oregon (US Bank) Pennsylvania (Comerica Bank) Rhode Island (JP Morgan Chase) South Dakota (US Bank) Texas (JP Morgan Chase) Utah (Comerica Bank) Virginia (Wachovia) Wyoming (US Bank) TransCard Provides Personal Financial Management Accessed via Web, Tool is Free to Cardholders CHATTANOOGA, TN (February 23, 2009) TransCard, provider of prepaid debit card solutions branded with MasterCard, Discover Network and STAR associations, has launched an online Personal Financial Management tool, free of charge to its cardholders. This offering is accessed via a tab function on the TransCard cardholder website. “In light of our nation’s current economic crisis, finding a way to better manage your money has never been more important,” says Jerry Uffner, President of TransCard. “We value our cardholders and wanted to provide them with an easy-touse, online financial management tool that can help them better understand their spending, budgeting and saving patterns. Our hope is that this Personal Financial Management program will give cardholders the tools they need to get their finances under control and face the future with confidence in their financial security.” From setting up personal spending reports to monitoring one’s net worth, cardholders now have a unique way to track their money-and much more. The following features are just a few the Personal Financial Management tool offers to cardholders: • Budgets - Helps plan where to spend and save money • Money management - Provides easy-to-read information about cardholders’ spending habits • Custom alerts - Alerts cardholders when they spend too much, use money outside of their planned budget or shop at a specific store • Multiple account access - Combines all cardholders’ accounts, from credit cards to savings accounts to credit union accounts, all in one location • Customized widgets - Adds information cardholders’ check daily onto the first page of their account, providing easy organization and prioritization of financial needs • Online safety deposit box - Provides cardholders with an eVault to store valuable documents, such as mortgages or loans The TransCard Personal Financial Management tool provides a real-time, integrated and automatic administrative platform through which cardholders can manage their finances more effectively, according to Craig Fuller, TransCard’s CEO. “Our goal is to move our cards from being a passive part of our cardholders’ wallets to being the center of their lives.” Source: TransCard (www.transcard.com) http://www.insurcard.com http://www.thebancorp.com http://www.ficoh.com http://www.nxtbook.com/nxtbooks/tpp/20080115/ http://www.monitiseamericas.com http://www.metavante.com http://www.transcard.com

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

The Prepaid Press - March 2009 Contents The Retske Report: A Disconnect in Connecticut Regulatory Rundown 5 Minutes With Brooks Smith, CEO of InComm TracFone Launches SafeLink Wireless in NY iPayStation Enables International Top-Up Comverse Launches Next-Generation IMS Solution Prepaid Companies Agree to Pay $2.25 Million Prepaid Telecom in Brief Boost Mobile Reintroduces Itself Virgin Mobile Announces New Branding Campaign The State of Prepaid Technology: Becoming a Virtual Operator Prepaid Wireless Roundup New Prepaid Calling Plans from Verizon Wireless The Legal Line Jobless Benefit Debit Card Usage Debated InsurCard Provides Catastrophic Relief Solution Metavante, Monitise Americas Launch Text Banking TransCard Provides Personal Financial Management Walmart to Help Americans Manage Finances Payments and Processing in Brief Prepaid Consumer and Employee/Partner Incentives CashStar Launches Interactive Gift Card Platform VIPGift Continues Sales Expansion Pentagon Installs Unique Card Personalization Line Digital Promotions Grow in Popularity The Ultimate Gift Card Network Retail Sales Show Unexpected Rebound Smart Transaction Systems Selects Hypercom GiftCards.com Acquires Swapagift.com InComm Gaming Opportunities on the Rise VCT Adds Equipment to New Jersey Facility Gift Cards and Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - March 2009

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