Mobile Check Deposit for Prepaid Cards – Instant, Guaranteed Funding
There is a revolution happening in mobile. Everywhere you look, no matter where you go, there are powerful new changes. The way we shop, the way we communicate, how we live and how we bank: mobile is affecting everything. For the underbanked, Mobile Loading is the hottest new technology. This gives prepaid cardholders the ability to safely load immediate, guaranteed funds from a check using a smartphone, while also providing financial institutions and other prepaid processors the ability to guarantee a check before it is accepted.
How does it work? Consumers simply take a picture of the front and back of a check using a mobile device and app, and then securely load the check electronically on a prepaid card – without visiting a bank or ATM. When the check is presented via mobile deposit, VALID is able to eliminate risk for prepaid processors by providing immediate verification while enabling instant funding for the consumer.
A Mobile Revolution for the Underbanked
- Using a smartphone, consumers can load funds from a check onto prepaid cards
- Eliminates risk for prepaid processors and enables instant funding or delayed deposit for consumers
- Mobile loading is available as a single-purpose, standalone app
- Financial institutions and prepaid processors can tailor the look and feel of the card.
- Mobile loading functions can be integrated into an existing mobile platform, which may offer other services such as transfers, balances or bill pay.
General purpose reloadable prepaid cards represent an important market segment opportunity, with one in ten U.S. households reporting past or current usage, according to the 2011 FDIC National Survey of Unbanked and Underbanked Households, published in September 2012. The same report shows growing demand for prepaid cards, especially among unbanked households, which saw usage jump from just over 12 percent in 2009 to close to 18 percent in 2011. Most importantly for financial institutions, almost half of the unbanked households that have used a prepaid card report being likely to open a checking account in the future.
Mobile loading uses web services to authenticate the cardholder with the program managers’ existing customer information system. All presented checks are packaged into industry standard formats to make them available to the bank that is performing the check clearing operation.
Find Out More
Whether you are a bank, credit union, check cashing facility or other retailer, VALID Systems offers a wide range of solutions that will enable you to do more business with the underbanked. We invite you to find out how we can help.
Have an inquiry about a VALID product or service? Ready to find out more? Contact us today.
VALID Systems: Flexible, Secure Solutions for the Financial Sector