Posted on 08/08/2007 7:27:36 PM PDT by khnyny
Capital One, the McLean financial services company, announced yesterday that it will purchase NetSpend Holdings, a retail seller of prepaid debit cards, for $700 million.
The acquisition would give Capital One, best known for its credit card offerings, a bigger presence in the growing market for prepaid debit cards and extend its reach to the estimated 70 million U.S. citizens who don't have bank accounts, the company said.
"It's adjacent to our core business," said Tatiana Stead, a spokeswoman for Capital One. "We now have an opportunity to provide an option for everybody."
Prepaid debit cards can be used like credit or debit cards but do not draw from a credit line or bank account. Consumers can buy and refill cards at designated locations including Safeway supermarkets and Ace Cash Express stores. The cards let customers without traditional bank accounts or credit cards make purchases online.
The prepaid debit market grew to $104 billion in 2006 from $64 billion in 2004, according to Aite Group, an industry research firm.
(Excerpt) Read more at washingtonpost.com ...
These prepaid debit cards are for people who are unable to open bank accounts - for whatever reason.
Corporate rapists : )
Well, it does keep creditors from seizing a bank account.
They’re enabling illegals and terrorists. Neither group can legally open a bank account.
Where do you live? Of course illegals can open bank accounts. Most of the majors will accept a Matricula Consular as valid ID. Just Google up Matricula Consular and Bank.of.America to start looking for a bank near you that will be happy to handle your banking business.
They are used for gift cards, too, since they aren’t tied to a specific retailer. And for maintaining privacy and security on web transactions.
Unfortunately for consumers, they often begin “degrading” in value via monthly fees, and they also don’t have the FTC protections that credit card transactions get (IANAL disclaimer here :-).
“They’re enabling illegals and terrorists. Neither group can legally open a bank account.”
Bingo!
“s adjacent to our core business,” said Tatiana Stead, a spokeswoman for Capital One. “We now have an opportunity to provide an option for everybody.”
Having been a financier for 25 years, you don’t want to ask me what this means : )
They can and are being used for money laundering, etc.
http://www.philadelphiafed.org/pcc/papers/2007/D2007FebPrepaidCardsandMoneyLaundering.pdf
I think I have an idea.:)
An old friend of a friend was an Ex. V.P. of a major bank (worked under the CEO), many years ago. Interesting stories.
Without a doubt : )
This is exactly right.
And handguns can and are being used for robbery, etc.
The Fed sure doesn't like being unable to track people, does it? I'm sorry, but having to show ID to spend my own money is not something I am going to support.
My company gives them out as incentives and safety awards.
Will you be against “money laundering” when the definition of this term includes donating to FR or Club for Growth?
What, you worried about being sued? Just put it all in the wife's name :)
And what bothers me is that there are some exits that you are not allowed to use unless you agree to their tracking (i.e., “I-Pass Only” exits).
And slowly but surely, the Republic is eroded without most people noticing.
I wanted to purchase a prepaid credit card, strictly for online purchases.
Turns out that it’s cheaper to open a second checking account. So until I can be bothered, I just won’t buy online. I’ve been ripped off for hundreds of dollars, and it started happening to my bf. I pay extra for Verizon Security Suite now. I hope it got that bloody keylogger off my machine.
You do not want to use a debit card that is tied to your bank account! More important, you really don’t want to mess with Capitol One...
LOL. What’s in your wallet????
Coupons!!!
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