Mitigating Risk in Prepaid Card Programs

Risk in any business is inevitable. Prepaid card programs start with risk as soon as the financial liability of a card appears on the balance sheet. From the time of issuance, all parties in the value chain must be aware of the many risks associated with that liability and understand how best to mitigate them, knowing that eliminating risk is an impossibility. 

The risks start with the seemingly simple task of understanding customer sentiments and managing their expectations. However, that is much more difficult than it appears. Other risks include store policies, theft scams, and fraud, the successful management of which compounds into ensuring customers feel secure in their purchases. Strong back-end technology and policies create an overlying, invisible shield that helps further reduce risk to acceptable levels.

Key questions discussed in this report:

• What are the biggest risks facing prepaid programs? 
• How do consumers feel about the risks associated with their individual prepaid cards? 
• What steps should players within the prepaid value chain take to mitigate risks? 
• What emerging solutions help to mitigate risks?

Companies Mentioned:

Blackhawk Network Fiserv, InComm, Indyme, Sensormatic Solutions, Totus, Walmart