You might want to talk with them about the benefits of prepaid cards. By Bart Scott
You might want to talk with them about the benefits of prepaid cards.
By Bart Scott
Sponsored by LSC
It might seem hard to believe, but there are many credit union members who still don’t have share draft accounts. The reasons are varied. Some members have difficulty maintaining a balance due to fluctuating income. Some just choose not to use a share draft account. Regardless of the reasons, a cash-only lifestyle is getting harder to maintain, and money orders are inconvenient. Reloadable, prepaid debit cards may help them. Prepaid cards function like traditional debit cards, while offering even more safety and security as they’re not linked directly to a share draft account. They are easily reloadable and, because they cannot be overdrawn, they also work as a great budgeting tool. Plus they are accepted everywhere traditional Visa cards are, but without the high interest of credit cards. With a prepaid debit card, members can experience the convenience and comfort of shopping or paying bills online even if they don’t have a share draft account. If you have members who don’t have a share draft account, considering tell them about prepaid debit cards that are:
- safer than cash: Branded cards’ zero liability consumer coverage applies.
- secure: Cards are not linked to personal information.
- convenient: Members can get balance and other information free, 24/7 online or via a mobile app.
- easy to load: Cards can be loaded at the credit union, on the member website, the mobile app, or even in some cases via an auto-funding feature.
- avoid overdrafts and associated fees: Cardholders can only spend the balance on the card.
This also can help member stay within their budgets. “Because our members travel a lot and we don’t have a regular debit card, a prepaid debit card works for that purpose,” says Nektaria Felecos, manager at $4.8 million Las Vegas UP Employees Federal Credit Union, Las Vegas, where 80 percent of the membership is employed by Union Pacific Railroad. “In the past, members had to rely on money orders or checks to access their funds while away from the branch. Now they have the convenience of a Visa card (through LSC’s Everyday Spend program) for purchases, free bill-payment, and access to cash at ATMs.”
Bart Scott is marketing communications coordinator for LSC, the Illinois Credit Union League service corporation. Also read “Prepaid Cards Mitigate Millennial Angst” and "Prepaid Cards Mitigate Millennial Angst" on this blog. CUES and CUES Supplier member CO-OP Financial Services have announced they are developing the new Payments University.
