Late in 2006, University signed a contract with a second vendor for a prepaid card that connected to cardholders’ cell phones. Features relative to the original prepaid cards are given below:
|Feature/Function||Mobile Banking Card||Piloted Prepaid Card|
|Card Focus||General Spend||General Spend|
|Transaction Types||Point of Sale and ATM||Point of Sale and ATM|
|Major Card Brand||Visa||MasterCard|
|Reload Options||Direct Deposit||None|
It had the following additional features:
• Visa zero-liability protection.
• Cardholders have free phone and on-line account information access.
• Account to account transfers via cell phone.
• Free ACH deposits.
• Reloading using cash via MoneyGram, via mail, on-line, and via cell phone.
• Free POS purchases and cash back at POS.
University’s research showed that a large percentage of low-income consumers in its markets own cell phones. Linking the card to a cell phone allowed the card to be turned on/off by the consumer as a way to prevent fraud.
Cardholders could receive text messages requesting transaction authorization, and make transactions via cell phone.