News Release Contacts:
PSCU Financial Services, Inc.
PSCU Financial Services Issues Two New White Papers
Documenting Trends in Prepaid Cards
Papers Describe Growing Profitability,
Member Demand for Reloadable Cards
St. Petersburg, FL, Feb. 8 – In the past, prepaid cards were primarily a gift card product
for most credit unions. But times have changed, according to two white papers released
by PSCU Financial Services. These papers, which are available free at the CUSO’s web
site document explosive growth for reloadable cards, with sales up 52% in 2009 and
money loaded onto the cards 46% higher for 2009 than previous years. By contrast,
sales of gift cards were up only 15% and money loads increased just 17%.
“Reloadable cards offer the ability to strengthen existing relationships, deliver an
alternative to potential new members who may not qualify for a debit card and are
attractive for the underserved market. This product also enhances relationships through
the recurring member contact required to reload the cards,” said Ron Silvia, VP Debit,
ATM & Prepaid Products, PSCU Financial Services.
Driven by the economic downturn, members are turning to reloadable cards to help them
stick to a monthly budget and as a money management tool for those struggling to
obtain or maintain credit and debit cards, according to the white papers.
PSCU Financial Services Issues Two New White Papers Documenting Trends in Prepaid Cards
While reloadable cards offer attractive member benefits, they also deliver a strong
revenue stream since these cards are not subject to gift card regulations in the CARD
Act and new debit regulations. Gift cards remain a viable product, however, since they
meet member needs for student and travel expenses as well as gift-giving.
Two papers on prepaid cards are available from the web site, “A Case for Prepaid
Cards,” and “Achieving Profitability with Prepaid Cards.” The CUSO also offers free
white papers on credit, debit, eCommerce, cards for small businesses and call centers.
About PSCU Financial Services
Based in St. Petersburg, Florida, PSCU Financial Services is the nation's largest credit
union service organization (CUSO) and serves more than 1,500 financial institutions
nationwide. As a non-profit cooperative, the company is owned by more than 680
member credit unions representing over 14 million accounts and 1 million online bill
payment subscribers. Its Contact Centers handle more than 19 million inquiries a year.
PSCU Financial Services offers 24/7 member support through four Contact Centers: its
Eastern operations center in St. Petersburg, Fla.; a Western operations center based in
Phoenix, Ariz.; and two call centers in Detroit, Mich. These Contact Centers perform
member servicing and new member acquisition, cross-selling and automated lending
solutions as well as support for debit/credit/prepaid cardholders and online bill payment
Established in 1977, the company provides a broad array of cost-effective, high quality
financial services that include credit, debit, ATM, prepaid, bill payment and contact
center solutions. PSCU Financial Services uniquely offers its members a full range of
processing options, any combination from full service to in-house pass through
processing for credit, debit and ATM transactions. As a leader in the credit union
movement, the company offers gateway access to national and regional networks. It
also provides full function ATM terminal driving services. For more information, visit
PSCU Financial Services’ website at www.pscufs.com.