The WSJ states that the card that is prepaid is booming and it is likely to achieve $200 billion in revenue by 2013. The largest prepaid credit card business, Green Dot Corp., raised $160 million with its IPO final thirty days and contains seen its stock increase by 30 % ever since then. The second-biggest business on the market, NetSpend Holdings Inc., hopes to increase $200 million in its very very own coming IPO. This is certainly very good news.
Prepaid cards are utilized as debit cards, because of the distinction they are perhaps perhaps not associated with a bank checking account, but they are drawing funds from a free account because of the bank that is issuing. Yet, they may not be charge cards either, since the issuer just isn’t expanding a personal line of credit towards the cardholder, that is really purchasing his / her cardвЂ™s spending limit. (more…)