SOURCE: PreCash

December 12, 2008 14:30 ET

Prepaid Debit Cards Help Consumers Manage Holiday Retail Spending

PreCash Survey Reveals Top Five Reasons People Use Prepaid Debit Cards

HOUSTON, TX--(Marketwire - December 12, 2008) - A recent PreCash survey reveals that the abilities to shop online and manage money are major reasons consumers get prepaid debit cards, reasons that also position the cards as a smart way to spend amid economic concerns this holiday shopping season.

"Concerns about the economy have consumers looking to control spending and avoid debt, therefore many are seeking new ways to pay for gifts and manage their money," said John Chaney, PreCash Chairman and CEO. "Cash isn't always an option because there's a lot you can't do without a card. Consequently, many are turning to prepaid debit cards like our Vision card, to stay on budget while maintaining access to financial services like shopping on the Internet, reserving a hotel room for holiday travel, paying their bills or accessing direct deposit."

The PreCash survey of its Vision Premier(SM) Prepaid Visa® Card users revealed that the top five reasons people get a prepaid card are:

--  To pay bills
--  They wanted a Visa card
--  They wanted direct deposit
--  To avoid carrying cash
--  To shop online
    

With the holidays just around the corner, the survey findings come on the heels of rising interest rates and recent studies saying banks fees are growing.

"Prepaid debit cards are a flexible alternative because bill payment, direct deposit and not having to carry large amount of cash give people ways to manage their money, and the cards come without the risks of overdraft fees or increased debt," adds Chaney. "With the Vision card, consumers can't damage their credit and they can spend only the money that's loaded to the card."

Prepaid debit cards are not only attractive to holiday shoppers on a budget, but appeal to the 75 million financially underserved consumers in the U.S. Underbanked consumers using the Vision card can avoid check cashing fees, manage their money via online account access, track their balance with e-mail and text alerts, and transfer money to friends and family.

Like traditional debit and credit cards, The Vision card is branded by a major card network, Visa. Similarly, it is issued by a regulating bank. The foremost difference is that you don't need a bank account or a line of credit to get the Vision card. Vision is accepted everywhere Visa debit cards are accepted, and it provides access to cash at millions of ATMs worldwide. Cash is loaded onto the card at retail locations or via direct deposit.

About PreCash, Inc.

PreCash provides convenient, real-time payment solutions that convert cash into electronic payments for consumers who do not use traditional payment methods such as credit cards or bank accounts. PreCash offers the Vision Premier(SM) Prepaid Visa® card and other prepaid Visa and MasterCard® products, prepaid debit card program management services, real-time cash bill payments, prepaid wireless refills, payroll card products and more. The company places more than 30,000 prepaid debit cards in the market monthly and services more than 30,000 national retail, wireless dealers and independent retail locations nationwide. Founded in 1998, PreCash is headquartered in Houston, Texas, with additional offices in Portland, Oregon. For more information, visit www.precash.com, or www.visionprepaid.com.

About the Survey

The Vision Premier Consumer Study consisted of nearly 500 telephone interviews of users of the Vision Premier Prepaid Visa Card.

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