The U.S. Fair Credit Reporting Act is a Federal Law that seeks to achieve fair, timely and accurate reporting of credit information by regulating the activities of credit bureaus, limiting access to credit bureau information, and requiring that creditors disclose certain information regarding their use of credit bureau or third
A “closed loop” prepaid card is a type of prepaid debit card that can only be used at certain merchant locations. Closed loop debit cards are also referred to as “store cards”, and are different than “open loop” prepaid cards which can be used at many different merchant
The Equal Credit Opportunity Act is a U.S. law that requires that U.S. financial institutions and other creditors make credit equally available to all creditworthy customers without regard to race, color, religion, national origin, sex, marital status or age. For example, a creditor cannot ask you to reapply, close your
An interchange fee, also called the discount rate, is the sum paid by a merchant to a payment card processor (either debit card or credit card) as a fee for accepting a credit card or debit card. The amount of the rate will vary, typically between 1 percent and 3
An “ISO” (or, Independent Sales Organization) is an organization that represents a Bank or other financial institution and that is permitted to sell the services of the Bank. ISO’s typically are the “face” of prepaid debit cards, and run the customer service operations, marketing, and other aspects of a prepaid
A term that frequently is used when reviewing the terms of a prepaid debit card is: “Posted Transactions”. Here’s what a “posted transaction” is (and why you should understand the term).
A posted transaction is a transaction that has not yet been processed or posted, and include credits, debits,
An “open loop” prepaid card is a type of prepaid debit card that can be used at multiple merchant locations (as opposed to “closed loop prepaid cards” that can only be used at certain merchants). An open loop debit card typically has a network brand on it,
“Prepaid credit card” is a term that sometimes is (wrongly) used to refer to a prepaid debit card. A “prepaid credit card” is also known as a “secured credit card” – a card that extends minimal “credit” based on an amount of funds you deposit (as “security”)
A rebate card is a prepaid debit card that is issued by a manufacturer or retailer and loaded with funds associated with a product or service rebate.
Retailers issued $4.24 billion in rebates on rebate cards in 2008, according to Mercator, a market research consulting firm for the prepaid card
the term “reload” refers to the process of adding monetary value or cash to a prepaid debit card account. Different prepaid cards have different ways of reloading value.Many prepaid cards can be reloaded with value using direct deposit of paychecks (or government benefits checks), using cash at authorized “reload