nFinanSe Now Holds 42 Money Transmitter Licenses
nFinanSe Continues Enhanced Compliance in the Distribution of Reloadable Cards, Issued Directly by Nationally Chartered Banks and Under nFinanSe’s Obtained State Money Transmitter Licenses
TAMPA, Fla.- nFinanSe Inc. (OTCBB:NFSE) today announced that it has successfully completed its efforts to become fully-licensed as a “Money Transmitter” in connection with the sale and reloading of the Company’s Reloadable Prepaid Cards at major retail chain stores.
The Company stated that it is now licensed in the District of Columbia and forty-one states requiring licensure in order to sell and reload reloadable prepaid cards. Seven states do not require such licensure and the Company has elected to not offer its nFinanSe Discover® Network Reloadable Prepaid Cards in the states of Hawaii and Vermont.
Jerry R. Welch, Chairman and Chief Executive Officer, said, “We are pleased to have completed this important project for our Company. The sale and reloading of prepaid cards at retail stores is still in its early stages of development. As such, there has been much discussion and some question about the controlling legal authority over the sale and reloading of prepaid cards. Even though our cards are issued by federally chartered banks, many states have taken the position that a state license is required. As a result, program managers, like ourselves, have applied for and received state licenses. As a Licensee, we then assure legal compliance for those retailers that become our authorized agents.”
Mr. Welch continued, “Until the issue of controlling legal authority is ultimately settled in the courts, we believe the right approach is to both issue our cards through a federally chartered bank and to maintain state Money Transmitter licenses. Our objective is to ensure that our retail partners are always deemed compliant under both federal and state law.”
About nFinanSe Inc.
nFinanSe Inc. is an innovative financial services company and provider of stored value and prepaid card solutions headquartered in Tampa, Florida. nFinanSe has developed the nFinanSe Network, a secure, reliable value load and activation platform that connects with retail merchants and other value load stations located throughout the United States. For more information visit www.nfinanse.com.
Cards are issued by Palm Desert National Bank pursuant to a license by Discover® Network. Discover® Network and the Discover Network Acceptance Mark are service marks used by Palm Desert National Bank under license from Discover Financial Services.
Cards are issued by First National Bank in Pipestone, Pipestone, MN pursuant to a license by Discover® Network. First National Bank in Pipestone is part of the Fishback Financial Corporation. All cards are FDIC insured with the exception of the nFinanSe Gift Card.
