• Managing the card
• Serving the cardholder
• Executing the transaction
• Getting the most from the platform.

A detailed discussion of each component provides decision-making guidance to prepaid issuers chartered with managing a program. The study also takes on several of the common misconceptions about the processor selection criteria, dispelling myths and setting the record straight based on perspectives from practitioners and current market trends

How to Start

Don’t start with the solution, start with the business objective. Find an experienced and consultative processor who can help crystallize your short-term and long-term needs and configure a tailored solution.

• Look for holistic processing. Companies entering the prepaid arena need to look at the full range of capabilities a processor offers and clearly understand how each component, from the platform to cardholder support, satisfies your operating requirements for the most effective program.
• Let customer preferences drive product innovation. As issuers develop new, niche products, find a processor with the flexibility and options to help satisfy customer needs expediently and reliably.
• Security and risk management are paramount. In prepaid card issuance, both with respect to fraud mitigation and also in terms of the scrutiny that issuers face to comply with money-laundering and homeland security standards, risk and compliance management can’t be overlooked.
• Plan for growth, anticipate evolution. As the market continues to mature, growth and change will follow. Prepaid issuers must look for a processor who has the foresight, scale and track record to help minimize growing pains.

Cundiff continues, “The evolution of the prepaid card segment will be driven by consumer needs and technology innovation that enhances functionality and security. Processors that continuously expand their offerings and essentially provide flexible solutions, will enable prepaid card issuers to strengthen and deepen their relationships with cardholders.”