CUs Should Consider Prepaid Cards for Small Business Members
The Members Group, a card processing CUSO affiliated with the Iowa Credit Union League, has reminded credit unions of the opportunities presented by prepaid cards and small business members.
The CUSO offers a variety of prepaid card products.
Prepaid cards could be a win-win for both the CU and small business members, TMG explained in a recent white paper on the topic, as their transactions are not subject to interchange regulation and business owners seek ways to streamline their operations and lower costs.
“By issuing reloadable cards for an employer, FIs become an indispensable partner to the business,” TMG wrote. “Not only do they ease some of the administrative time and hard-cost issues inherent to payroll management, they give the business a way to endear itself to its employees. Reloadable cards save employees’ time and give them the features of a traditional Visa debit card without the risks of overspending.”