The WSJ reports that the prepaid credit card company is booming and it is likely to achieve $200 billion in income by 2013. The greatest prepaid credit card business, Green Dot Corp., raised $160 million in its IPO final thirty days and contains seen its stock increase by 30 % ever since then. The second-biggest business in the industry, NetSpend Holdings Inc., hopes to improve $200 million with its very own coming IPO. That is very good news.
Prepaid cards are employed as debit cards, using the distinction they are maybe perhaps maybe not connected to a bank account, but are drawing funds from a free account with all the bank that is issuing. Yet, they may not be charge cards either, as the issuer just isn’t expanding a line of credit towards the cardholder, that is really buying his / her spending that is cardвЂ™s limitation. When the stability can be used up, the card may be re-loaded.
Prepaid cards limit the cardholderвЂ™s investing to the total amount that is pre-loaded in the card. (mais…)