Start-Up Company Offers to Cash Out Open-Loop Prepaid Cards

by Mercator Advisory Group 0

Prepaid2Cash, a San Francisco-based start-up, announced this week it has launched a Web site that enables holders of open-loop prepaid cards to type in their card numbers and receive cash via ACH or check. The company says on its Web site that it was created because prepaid cards are not a safe way to hold money and have high fees.

Peter Vogt, the Company’s Co-Founder and CEO noted “There are billions of dollars locked away on prepaid cards that are accruing fees and have the risk of being lost, stolen or forgotten about. Prepaid2Cash provides customers with a quick, easy way to access their cash.”

Open-loop cards are supposed to provide an easy way for cardholders to access their funds. The company’s marketing seems to focus heavily on rebate cards, though regardless of the type of card, the ease of redemption seems to be equivalent to the ease of redeeming it through this Web site. One wonders whether someone will take their card to Prepaid2Cash.com rather than amazon.com, for example.

Click here to read the press release.