Americans Using REACH Visa® Prepaid Card for Everyday Basic Needs
Top Five Uses for The REACH Card Are ATM Access, Grocery and Retail Purchases, Automobile Services, and Bill Pay
HOUSTON, Dec. 14, 2011 /PRNewswire/ -- With its simply priced, transparent fee structure, The REACH Visa Prepaid Card is growing in popularity among consumers looking for an alternative to traditional banking to manage their everyday needs. Since its launch in January, data compiled by PreCash reveals the average cardholder is using the card for everyday household needs.
The top five uses for the card are ATM access, grocery and retail purchases, automobile services, and bill pay. About 43 percent of all transactions are for ATM access; 17 percent are for grocery and drug store purchases; retail purchases account for 12 percent of transactions while 8 percent are for automobile services; and 6 percent of transactions are for bill pay (utilities, phone, and cable). Other popular uses for the REACH Card include dining, travel and entertainment. These uses account for about 13 percent of all REACH Card transactions.
A study conducted by Bretton Woods in 2011 found general purpose reloadable prepaid cards can cost as little as $76 a year compared to the yearly costs of a basic checking account which may be as high as $218. The report also found consumers using check cashers would pay a minimum of $140 annually. REACH Card users understand the savings potential with the REACH Card as 80 percent of the money added to the cards is added via direct deposit.
Tom Joyner, host of the nationally syndicated Tom Joyner Morning Show, partnered with PreCash to empower more African Americans and others to take control of their finances with a straight forward, easy to understand prepaid card. The REACH Card has three standard fees: an activation fee; a monthly fee; and an ATM fee.
Cardholders receive free direct deposit and customer service and no inactivity fee is charged. Funds can be loaded to the cards by direct deposit from an employer for free or at over 100,000 retail locations nationwide. The REACH Card has no fee to add cash at retailers, but individual retailers may charge a fee.
Hear what REACH cardholders are saying about their experience using the card by visiting www.thereachcard.com. The card is issued by The Bancorp Bank; Member FDIC, pursuant to a license from Visa U.S.A. Inc. Consumers can purchase The REACH Card online by visiting www.thereachcard.com.
"As our economy rapidly moves toward digital transactions, prepaid cards like REACH Card ensure no consumers are left behind and forced to pay high fees to access the financial mainstream," remarked Mia Mends, General Manager and Vice President of Product Strategy for PreCash. "Market demand for the REACH Card has been strong because of the card's simple three fee structure and ease of use," added Mends.
Prepaid cards are ideal budgeting tools because one can only spend the money that's on the card. Once the funds on the card are spent, more can be added for additional usage. The hope is The REACH Card will empower more African Americans to use this card as a stepping stone to take control of their money and bring greater financial stability to their lives.
About PreCash, Inc.
PreCash improves lives and business through payments and is a leader in payments services and transaction processing. We help cash-paying and underserved people access mainstream financial services, help financial institutions deliver their customers faster transactions, and help our partners generate revenue and build stronger bonds with consumers. We offer bill payment processing solutions, walk-in payments services, Visa® prepaid card and MasterCard® products and solutions and mobile financial solutions for service providers, financial institutions, consumers, the mobile industry, retailers and more. PreCash serves more than 3 million consumers and touches more than 2 billion dollars in payments annually. Our products are serviced in more than 100,000 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.thereachcard.com.
SOURCE PreCash, Inc.