March 28, 2011 09:28 AM Eastern Daylight Time
Prepaid Debit Card Company Bank Freedom Leaving MetaBank
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Bank Freedom, a wholly owned subsidiary of Prepaid Card Holdings, Inc. (Pink Sheets:PPDC), announced today that it is leaving MetaBank (NASDAQ:CASH). Bank Freedom intends to begin issuing its new prepaid cards through a new issuing Bank in May or June 2011 and phase out of MetaBank completely by November 2011.
“MetaBank recently informed Bank Freedom that it is not going to renew the existing agreement between Meta and Bank Freedom which expires November 17, 2011."
“In 2010 we switched processors to reduce our processing costs. Our business model since inception has been to offer consumers innovative prepaid card programs with low pricing and robust features. By switching issuing banks we can further reduce our cardholder fees without decreasing our profit margins,” stated Bruce Berman, CEO of Bank Freedom.
Bank Freedom recently informed MetaBank that it had contracted with a new issuing bank for the Bank Freedom Prepaid Cards. MetaBank recently informed Bank Freedom that it is not going to renew the existing agreement between Meta and Bank Freedom which expires November 17, 2011.
About Prepaid Card Holdings, Inc.
Prepaid Card Holdings, Inc. is a provider of financial services in the prepaid debit card industry. The company, through its wholly owned subsidiary, offers prepaid debit cards to America’s estimated 60 million underbanked citizens. In addition to the underbanked consumer demographic, small and mid-size businesses have found a much needed product with the company’s Prepaid Business Expense Card Program. With the diminishing credit card markets, companies need a new way to fund employees’ expenses other than through traditional credit cards or cash reimbursements. For more information about Prepaid Card Holdings, Inc. visit www.PrepaidCardHoldings.com
