The WSJ states that the prepaid credit card company is booming and it is likely to achieve $200 billion in income by 2013. The greatest card that is prepaid, Green Dot Corp., raised $160 million in its IPO final thirty days and it has seen its stock increase by 30 % since that time. The second-biggest business in the industry, NetSpend Holdings Inc., hopes to increase $200 million with its very own IPO that is coming. That is great news.
Prepaid cards are employed as debit cards, using the huge difference they are maybe perhaps not associated with a bank account, but are drawing funds from a free account aided by the issuing bank. Yet, they are not charge cards either, since the issuer is certainly not expanding a line of credit towards the cardholder, that is really buying his / her cardвЂ™s spending limitation. When the stability can be used up, the card are re-loaded.