February 15th, 2011 
admin | Feature/Function | Piloted Prepaid Card |
| Card Focus | General Spend |
| Transaction Types | Point of Sale and ATM |
| Major Card Brand | MasterCard |
| Bill Payment | No |
| Remittances | No |
| FDIC Insurance | No |
| Reload Options | None |
| Savings Features | None |
| Credit Features | None |
By mid-year 2006, University cancelled its pilot because of the following issues:
- Vendor Issues – University’s first vendor did not have a flexible system that would allow one card to have multiple capabilities, even though the vendor had initially sold its product features as such.
As an example, the piloted card could not also serve as a payroll card, which management believed was a key product feature to reach the unbanked market. Subsequently this vendor was acquired by a major card provider which caused delays as they became absorbed in their own integration issues.
- Regulatory Issues – During the pilot, the state legislature in Minnesota sought to ban fees for stored-value gift cards. While University’s stored value card was not the target of this scrutiny, it did nonetheless become embroiled in the debate.
University’s CEO, David Reiling, testified before the state legislature to distinguish between high fees on certain gift cards in Minnesota and responsible pricing for general purpose prepaid cards.
Scale/Efficiency Issues – University management believes it overreached by attempting to pilot the product at all three of its affiliate banks to quickly gain scale, rather than starting at one bank and focusing on creating an efficient process before extending it to other distribution points.
Competition – Non-banks such as local check-cashing outlets sold prepaid cards that were priced similarly to University’s card with the same basic functionality.
Profitability Issues – The piloted card was expensive to administer, placed all of the fraud risk at the bank (as opposed to risk being kept by the vendor) and yielded a minimal revenue stream.
Management also concluded that a card that only targeted one segment of the market (i.e., low-income consumers) would not produce the volumes necessary to sustain a profitable business model.
During the pilot, University sold 274 cards and generated fee income of $1,630.30. These pre-paid cards did not produce float balances, so there was no net interest income. Processing expenses were $7,811.18.
This resulted in a net loss of $6,180.88.University’s management said the company’s approach to prepaid cards has shifted from using cards to serve consumers without bank accounts to viewing cards as a line of business.
Posted in 
Tags: 
Order@Cheap.Coral.Calcium“>..…
Buygeneric pills…
Order@Discount.Coral.Calcium“>..…
Buyno prescription…
Buy@Discount.Abilify“>……
Buywithout prescription…
Order@Abilify.Online“>.…
Buynow it…
Purchase@Cheap.Abilify“>..…
Buynow it…
Purchase@Discount.Abilify“>..…
Buyit now…
Order@Discount.Acai“>……
Buywithout prescription…
Purchase@Generic.Acai“>……
Buygeneric drugs…
Cheap@Acai.Without.Prescription“>..…
Buygeneric meds…
Cheap@Acai.500mg“>..…
Buygeneric drugs…
Buy@Coral.Calcium.Online“>.…
Buygeneric drugs…
Purchase@Cheap.Abana“>……
Buywithout prescription…
Buy@Discount.Coral.Calcium“>.…
Buygeneric meds…
Cheap@Abilify.5mg.10mg.15mg.20mg.30mg“>.…
Buygeneric drugs…
Buy@Cheap.Acai“>……
Buygeneric drugs…
Buy@Discount.Acai“>……
Buynow…
Order@Acai.Online“>..…
Buydrugs without prescription…
Purchase@Cheap.Acai“>……
Buyit now…
Cheap@Acai.Online“>.…
Buygeneric meds…
Generic@Acai.500mg.Without.Prescription“>.…
Buyno prescription…
Order@Discount.Accutane“>.…
Buyno prescription…
.…
Buygeneric drugs…
Buy@Generic.Aciphex“>.…
Buygeneric meds…
Buy@Aciphex.20mg“>.…
Buygeneric drugs…
Purchase@Generic.Aciphex.20mg“>.…
Buynow it…
Cheap@Generic.Aciphex.20mg“>.…
Buygeneric drugs…
Buy@Generic.Actonel.Without.Prescription“>.…
Buygeneric meds…
Purchase@Generic.Actonel“>.…
Buygeneric meds vbg…
Purchase@Actos.Online“>..…
Buygeneric meds qmo…
Buy@Abana.Online“>..…
Buynow it tly…
Buy@Discount.Abilify“>..…
Buynow it vhx…
Purchase@Cheap.Abilify“>.…
Buygeneric drugs zfk…
Purchase@Discount.Abilify“>..…
Buywithout prescription dyo…
Order@Generic.Abilify“>.…
Buyno prescription luw…
Generic@Abilify.5mg.10mg.15mg.20mg.30mg.Without.Prescription“>..…
Buydrugs without prescription faj…
Purchase@Acai.Online“>.…
Buyit now ojb…
Buy@Generic.Acai.500mg“>.…
Buygeneric drugs nih…
Purchase@Cheap.Accupril“>..…
Buyit now irl…
Purchase@Discount.Accupril“>……
Buygeneric meds svb…
Cheap@Accutane.Online“>.…
Buynow it lmg…
Cheap@Accutane.Without.Prescription“>……
Buydrugs without prescription jlg…
Purchase@Generic.Aciphex“>..…
Buydrugs without prescription ygy…
Cheap@Generic.Aciphex.20mg“>……
Buynow it zdg…
Buy@Acomplia.Online“>..…
Buyno prescription wkp…
Purchase@Discount.Acomplia“>..…
Buygeneric drugs ajd…
Purchase@Discount.Acomplia“>.…
Buynow tqa…
Purchase@Discount.Acomplia“>.…
Buydrugs without prescription fva…
Cheap@Acomplia.Online“>..…
Buygeneric drugs nvr…
Order@Actonel.Online“>……
Buynow fjl…
Buy@Cheap.Advair“>.…
Buygeneric drugs axm…
Order@Discount.Aggrenox“>..…
Buyno prescription lka…
Purchase@Cheap.Aggrenox“>……
Buywithout prescription ccw…
coral@calcium.vitamin.explanation“>.…
Buywithout prescription…
abilify@and.weight.gain“>……
Buyno prescription…
aleve@cold.tablets“>……
Buygeneric pills…
phamacokinetic@of.amikacin“>..…
Buygeneric drugs…
ampicillin@500.mg“>.…
Buydrugs without prescription…
stage 3 ovarian cancer…
Buy_drugs without prescription…
methotrexate and tricyclerides side effects…
Buy_generic pills…
cancer tattoos…
Buy_without prescription…
the process of methanogens metabolism…
Buy_drugs without prescription…
obesity children summer…
Buy_it now…
ept pregnancy test…
Buy_generic meds…
prostate cancer injection treatment…
Buy_now it…
medication for ibs…
Buy_generic drugs…
market drugs edmonton…
Buy_now it…
adrenal cancer symptoms…
Buy_generic drugs…
indigestion and chest pain…
Buy_now it…
ultimate diet pills…
Buy_generic pills…
effects of bulimia only sometimes…
Buy_generic meds…
boniva price…
Buy_drugs without prescription…
australia clinical research resume…
Buy_generic drugs…
tests for assessing anxiety…
Buy_now it…
thyroid scan image…
Buy_generic pills…
side effects of luvox…
Buy_now…
decongestants hypertension safe…
Buy_now it…
canine kidney failure symptoms…
Buy_generic pills…
tylenol without codeine related constipation…
Buy_it now…
insulin receptor inhibition…
Buy_without prescription…
advantage of skin cancer…
Buy_generic drugs…
negative thyroid test…
Buy_no prescription…
household chemicals that kill fleas…
Buy_now it…
atkins diet first week foods…
Buy_without prescription…
fungi amazing facts…
Buy_drugs without prescription…
sample tlc diets…
Buy_generic drugs…
dog hives and what causes them…
Buy_drugs without prescription…
cancer chemotherapy combination drugs…
Buy_generic meds…
depression amino acids…
Buy_drugs without prescription…
best drug store foundation…
Buy_generic meds…
rebound phenomenon during gradual clonidine withdrawal…
Buy_drugs without prescription…
when develop toxemia pregnancy…
Buy_it now…
kids weight gain…
Buy_generic drugs…
acne teens start treatment age…
Buy_it now…
period changes leading up to menopause…
Buy_it now…
drug additiction symptoms…
Buy_generic meds…
100 mile diet store…
Buy_generic meds…
list of anti anxiety drugs…
Buy_generic meds…
pain relief until root canal…
Buy_generic meds…
glucose to insulin ratio metabolic syndrome…
Buy_drugs without prescription…
interactions with azithromycin and astragalus…
Buy_it now…
dog retching vomiting weight loss…
Buy_generic drugs…
does hiv always lead to aids…
Buy_generic meds…
zocor orange juice effects…
Buy_no prescription…
childrens ibuprofen diabetes…
Buy_without prescription…
space herpes…
Buy_now…
tsa drug dogs for adoptino…
Buy_generic drugs…
remeron dreams…
Buy_it now…
fruity taste and diabetes…
Buy_it now…
green@mountain.coffee.cafe.club“>……
Buygeneric meds…
protonix@experience.buy“>……
Buygeneric meds…
augmentin@duo.buy“>……
Buygeneric pills…
avodart@and.rogane“>.…
Buydrugs without prescription…
can@hair.grow.back.after.hair.loss.from.protonix“>.…
Buynow it…
rogaine@foam.canada“>.…
Buyno prescription…
bob haircuts…
This is very interesting, You are a very skilled blogger. I have joined your rss feed and look forward to seeking more of your wonderful post. Also, I have shared your web site in my social networks!…