The Federal Reserve Board issued the official deadline of Jan. 31, 2011, for when prepaid card providers must comply with rules implementing the Credit Card Accountability Responsibility and Disclosure Act of 2009. The initial deadline of Aug. 22, 2010, was considered too soon for businesses to meet without disruption. An interim deadline of January 2011 was imposed while the Fed considered public comments on the deadline. The Fed received two comments, neither from a prepaid card business. "Both commenters generally supported the interim final rule," the Fed said in its notice and so went ahead with issuing the final deadline.
Despite the recent troubles of its main issuing bank, NetSpend Holdings Inc. priced its initial public offering (IPO) at $11 per share on Oct. 17, 2010. It began publically trading its stock on the Nasdaq stock exchange the following day. Reports had the stock rising 18 percent on its Tuesday debut, climbing to $13.49 before closing at $13.
NetSpend's IPO comes on the heels of action taken by the Office of Thrift Supervision, a federal bank regulation agency, against MetaBank, Netspend's primary issuing bank. The OTS told MetaBank to discontinue its iAdvance loan program. The program is offered to consumers through NetSpend's prepaid cards.
The U.S. Department of the Treasury Financial Management Service(FMS) and the U.S. Navy reported the completion of the Navy Cash Stored-Value Card rollout across the entire active Navy Surface Fleet. The last implementation occurred on the USS Frank Cable, FMS said.
"FMS is excited to assist the Navy with this innovative electronic cash management service that virtually eliminates the need for currency and coins aboard ship," said David A. Lebryk, FMS Commissioner. "With Navy Cash, the Navy has an efficient cash management process, and sailors have more secure and convenient access to their funds."
Loyalty and marketing solutions provider Alliance Data Systems Corp. reported its four retail call centers were recognized with the Center of Excellence certification from BenchmarkPortal in conjunction with the nonprofit foundation Center for Customer-Driven Quality at Purdue Research Park.
Campus card provider CardSmith implemented the Essential Card program for Florida State College at Jacksonville. Students, faculty and staff can use the ID card on each of the college's 12 campus locations in Jacksonville.
San Francisco-based social networking site developer Meez said its Meez Coinz Cards are now available in Safeway Inc. and The Kroger Co. grocery stores nationwide.
Monitise PLC unveiled Monitise Globe – what the company called the first global mobile money technology platform. The platform incorporates mobile banking and payment services to deliver financial management via mobile phone globally, Monitise said.
Mobile debit payment network provider mPayy Inc. reported that its clients – both consumers and businesses – can now load funds to, and fund payments from, their prepaid debit cards via the mPayy network.
At the Prepaid Awards 2010 held in London, Oberthur Technologies won the Best Prepaid Manufacturer category, and InComm won both the Best Prepaid Product Distributor and, in partnership with PrePay Solutions, Best Prepaid Gift Program.
Vienna, Austria-based online payment provider paysafecard indicated its prepaid voucher service is now available in the United States. The service provides consumers a prepaid solution for purchases in online gaming environments.
PXT Payments implemented a contactless prepaid debit card program for Brookline, Mass. The program is designed to offer residents a convenient payment option and to boost consumer spending in the city. Residents load prepaid cards to pay for street parking and for use at local retailers, such as coffee shops and hardware stores.
Private-label stored-value processor SparkBase unveiled ApproveYourCard.com, an online portal that allows SparkBase ISOs to submit and manage custom card orders in lieu of communicating via fax and email.
Online bill pay and one-time payments provider Vindicia Inc. achieved the Silicon Valley/San Jose Business Journal's Fast 60 list of the fastest-growing private companies in Silicon Valley. Vindicia said it was the third year in a row that it made the list.
Through its corporate program Our World, Our Family and The Western Union Foundation, The Western Union Co. distributed $500,000 to Mercy Corps to provide training and funding for up to 1,000 small businesses in Haiti.
Safeway Inc. subsidiary Blackhawk Network added the Causes.com gift card to its gift card mall selection. Through Causes.com, gift card recipients can donate funds to charities of choice, such as Easter Seals, the Red Cross, UNICEF, the World Wildlife Fund and CARE.
IGH Solutions Inc., a card fulfillment house and Taylor Corp. division, entered a strategic relationship with digital e-gifting company Giftango Corp. to offer virtual and plastic gift card solutions to consumers.
InteliSpend Prepaid Solutions and Discover Financial Services inked a deal to provide both entities a variety of new services to their respective clients. Discover will get access to InteliSpend's incentive customers and InteliSpend will leverage its distribution channels to expand its services to Discover card customers, the companies said.
MoneyGram International signed a deal with Vijaya Bank to offer MoneyGram's money transfer services in 1,173 of its branch locations across India. MoneyGram also made a global pact with Ceridian Stored Value Solutions in which Ceridian will provide processing for MoneyGram's "in-lane" prepaid money transfers.
Additionally, MoneyGram partnered with CashEdge Inc. to integrate their respective money transfer and payment services platforms for expanded services. Furthermore, MoneyGram signed an agreement with Online Resources Corp. to offer same-day cash payment services from any MoneyGram U.S. agent location to Online Resources billers.
Foreign exchange specialist Travelex launched the Cash Passport MasterCard in collaboration with the Bank of China and MasterCard Worldwide. It is the first MasterCard-branded travel card launched by the three parties in mainland China, Travelex said.
As part of its corporate reorganization, Evolution Benefits Inc. appointed Chris Byrd as President and Chief Operating Officer and promoted Patrick Murphy to Executive Vice President, and Matt Dallahan to Senior Vice President for Strategy and Product Development.
FSV Payment Systems Inc. named Steve Fussell to the newly created role of President.
Coinstar Inc. hired Mary A. Leonard as it Chief Performance Officer and member of Coinstar's executive management team.
Las Vegas-based processor eCommLink Inc. appointed Oscar Mota to Senior Vice President of Operations to oversee such eCommLink programs as the Market Ready program, a turnkey prepaid debit solution.
Total Systems Services Inc. promoted Allen Pettis to EVP for Major Account Relationship Management, to include TSYS Loyalty and Prepaid, value-added products and debit.
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