Javelin Strategy & Research has announced results from a study of how a prepaid card issuer should assess and choose a processing partner in order to obtain the greatest success from prepaid card programs. According to Javelin, the processor choice is often overlooked and undervalued by prepaid program managers - but growth in the complexity of prepaid products underscores the importance of selecting the right processor.Results have been published in a white paper titled: Choosing a Prepaid Processor in an Evolving Market: A Study on Issuer and Program Manager Needs and will be presented during a complimentary webinar session on Wednesday, December 3rd, 2008 at 11:00am Pacific Standard Time.
Registration for the webinar can be accessed at https://visa.webex.com/visa/onstage/g.php?t=a&d=662825557. Attendees will be provided a link to access the materials, including the paper.
“Companies that want to enter or expand their prepaid card presence face important business decisions,” said Bruce Cundiff, (pictured at right) Director of Payments Research and Consulting at Javelin. “Using a thorough methodology to choose the right processor is integral to achieving success and a reliable return on any prepaid card program.”There are, according to Javelin, 4 key components to an effective prepaid processing program. These include:
A detailed discussion of each component provides decision-making guidance to prepaid issuers chartered with managing a program. The study also takes on several of the common misconceptions about the processor selection criteria, dispelling myths and setting the record straight based on perspectives from practitioners and current market trends
- Managing the card
- Serving the cardholder
- Executing the transaction
- Getting the most from the platform.
How to Start
Don’t start with the solution, start with the business objective. Find an experienced and consultative processor who can help crystallize your short-term and long-term needs and configure a tailored solution.Cundiff continues, “The evolution of the prepaid card segment will be driven by consumer needs and technology innovation that enhances functionality and security. Processors that continuously expand their offerings and essentially provide flexible solutions, will enable prepaid card issuers to strengthen and deepen their relationships with cardholders.”
- Look for holistic processing. Companies entering the prepaid arena need to look at the full range of capabilities a processor offers and clearly understand how each component, from the platform to cardholder support, satisfies your operating requirements for the most effective program.
- Let customer preferences drive product innovation. As issuers develop new, niche products, find a processor with the flexibility and options to help satisfy customer needs expediently and reliably.
- Security and risk management are paramount. In prepaid card issuance, both with respect to fraud mitigation and also in terms of the scrutiny that issuers face to comply with money-laundering and homeland security standards, risk and compliance management can’t be overlooked.
- Plan for growth, anticipate evolution. As the market continues to mature, growth and change will follow. Prepaid issuers must look for a processor who has the foresight, scale and track record to help minimize growing pains.
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