Prepaid credit card use is increasing that will be maybe possibly maybe not simply a bad thing

Prepaid credit card use is increasing that will be maybe possibly maybe not simply a bad thing

The WSJ states that the credit that is prepaid business is booming and it’s also more likely to attain $200 billion in earnings by 2013. The greatest card that is prepaid, Green Dot Corp., raised $160 million having its IPO last 30 days and it has now seen its stock enhance by thirty percent ever since then. The second-biggest company in the market, NetSpend Holdings Inc., hopes to enhance $200 million featuring its very very very very own coming IPO. It really is news that is good.

Prepaid cards are used as debit cards, with all the current difference these are generally perhaps possibly possibly maybe not attached to a bank account that is checking but they are drawing funds from a credit card merchant account utilizing the bank that is issuing. Yet, they’re not charge cards either, considering that the issuer just is not expanding a credit line towards the cardholder, this is certainly really buying his or her card’s investing limitation. Continue reading Prepaid credit card use is increasing that will be maybe possibly maybe not simply a bad thing