The outlook for prepaid card programs remains optimistic despite recent pullbacks by several states for providing tax returns on prepaid cards. Minnesota and Connecticut states suspended their debit-card tax refund programs following the breaches at Target and at one of the prominent prepaid card issuers. Despite these turn of events several big prepaid card issuers and processors such as Green Dot and TSYS/Netspend remain positive about the growth in prepaid cards as pointed out in an article, “Prepaid Programs Also Affected By Recent Breaches” , by Jeffrey Green of pymnts.com.
While the security challenges of a provider creates concerns for some, many program managers are seeing an increase in opportunities from those employers who have come to depend on the efficiency and savings that prepaid cards offer for corporate disbursements such as payroll, accounts payable and incentives.
President, CoreCard Processing