PSCU Financial Services’ Prepaid Card Program Experiences Dramatic Growth in 2008   

Cooperative’s Reloadables and Gift Cards Post Substantial Gains

St. Petersburg, FL, March 9, 2009 – PSCU Financial Services announced today that its prepaid card portfolio posted large gains in 2008 and is on track for continued success in 2009. PSCU Financial Services delivered more than 100 reloadable programs and closed 2008 with $12.2 million in assets. Its gift cards are now offered by 120+ member-owner credit unions.

The cooperative also noted that the number of reloadable cards issued by its members last year increased by 4.6 times and initial load amounts were higher by a factor of five. The cooperative’s credit union membership also purchased 465,937 gift cards in 2008, a 74% increase over 2007. Both gift and reloadable cards offer the same protection as Visa Debit cards and are supported by PSCU Financial Services’ award-winning 24 x 7 Contact Center.

 “With the recent rash of store closings and retailer bankruptcies, consumers are shying away from merchant gift cards. In this environment, both gift and reloadable cards are proving popular not only for their flexibility but also as an ideal solution for students, travelers and the underbanked,” said Denise Stevens, Director of Prepaid Card Services, PSCU Financial Services.

State Employees’ Credit Union of Raleigh, N.C., launched the prepaid program in 2007. “Since the initial rollout, PSCU Financial Services’ Prepaid Team has worked with us to customize our program to be in line with our business approach. We now have a program that we are proud to offer to our members and branches,” said Leanne Phelps, Senior Vice President, Card & Record Services, State Employees' Credit Union.

PSCU Financial Services urges its credit unions to market reloadable cards as part of a student program. Allowances can be automatically loaded onto the card at desired intervals from a parent’s account. Children then become responsible for making sure they stay within their budget. These cards also allow parents to view spending habits.  Many credit unions are also promoting reloadables to provide added convenience and security for travelers while simultaneously eliminating the need for travelers checks.

Reloadable cards also deliver many advantages for the underbanked and the credit unions that serve this market. People who do not have, or do not qualify for, a checking account are subject to both punitive payroll check cashing services and difficulties in paying bills with cash. With reloadable cards, people can pay their bills online using computers available at public libraries or other public facilities. MasterCard and Visa are introducing a network of terminals to allow people to convert cash into reloadable cards at convenience stores and gas stations.   

PSCU Financial Services has expanded its marketing and promotional materials for prepaid cards and now offers bilingual materials. Credit unions can also order materials online. For more information, please visit www.pscufs.com or call 800-443-PSCU, Ext. 4719.

About PSCU Financial Services

Based in St. Petersburg, Florida, PSCU Financial Services is the nation's largest credit union service organization (CUSO) and serves more than 1,100 financial institutions nationwide. As a non-profit cooperative, the company is owned by more than 600 member credit unions representing over 13 million accounts and subscribers. Its Contact Centers handle more than 16 million inquiries a year.

PSCU Financial Services offers 24/7 member support through four Contact Centers: its Eastern operations center in St. Petersburg, Fla.; a Western operations center based in Phoenix, Ariz.; and two call centers in Detroit, Mich. These Contact Centers perform member servicing and new member acquisition, cross-selling and automated lending solutions as well as support for debit/credit/prepaid cardholders and online bill payment subscribers.

Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, prepaid, bill payment and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As a leader in the credit union movement, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services. For more information, visit PSCU Financial Services’ website at www.pscufs.com.

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