The WSJ states that the prepaid credit card company is booming and it is likely to achieve $200 billion in income by 2013. The largest card that is prepaid, Green Dot Corp., raised $160 million with its IPO final thirty days and it has seen its stock increase by 30 % subsequently. The second-biggest business in the market, NetSpend Holdings texas title loans Inc., hopes to improve $200 million in its very very very own IPO that is coming. This can be great news.
Prepaid cards are utilized as debit cards, because of the distinction that they’re maybe not connected to a bank checking account, but are drawing funds from a free account with all the issuing bank. Yet, they’re not charge cards either, since the issuer is certainly not expanding a line of credit to your cardholder, that is actually buying his / her card’s spending restriction. Continue reading