Get Instant VCC in 3 Simple Steps

Online Registration

Firstly, you need to register your account online.

Account Deposit

You need to recharge your account on click to deposit button.

Create a Card

In the last stage, you just have to issue virtual cards with one click.

how to become a prepaid card issuer

how to become a prepaid card issuer

How to Become a Prepaid Card Issuer

A prepaid card is a popular alternative to credit and debit cards, providing customer convenience and satisfaction. Becoming a prepaid card issuer can be a lucrative business opportunity and requires the following steps:

Secure Approval

  • Research: Become familiar with the regulations of the card issuing industry, including the Electronic Fund Transfer Act (EFTA), Gramm-Leach-Bliley Act (GLBA), Bank Secrecy Act (BSA), and Truth in Lending Act (TILA).
  • Obtain approval: Apply for approval from the Financial Crimes Enforcement Network (FinCEN) to become a money services business (MSB).
  • Develop bank partnerships: Identify and partner with several banks to obtain a sponsoring depository institution (SDI). An SDI provides overall backing for the prepaid card’s funds.
  • Apply for a card issuer: Submit an application to a card network, such as Visa or MasterCard, to become a prepaid card issuer.

Develop Card Program

  • Gather funds: Develop a resources raise and liquidity plan to deposit and manage sufficient funds in multiple bank accounts.
  • Contract vendor: Seek out and contract a card vendor to provide and manage prepaid cards, including the printing and mailing of cards.
  • Start a prepaid card program: Utilize the card issuer’s program as a platform to launch a prepaid card program.
  • Market cards: Obtain a business tax identifier number to market prepaid cards through merchant networks or through direct customers.

Manage and Grow Program

  • Manage customer accounts: Develop processes to enroll customers and manage their accounts, as well as handle customer disputes and provide customer service.
  • Perform Know Your Customer (KYC): Establish KYC guidelines to combat money laundering and fraud. KYC procedures require prospective customers to submit identity documents as part of the account enrollment process.
  • Grow marketplace use: Work with customers, vendors, and distribution networks to expand merchant acceptance, limit merchant fraud, and increase card acceptance.

Becoming a prepaid card issuer requires effort and research into regulations and the card issuing industry. However, for those who wish to break into the industry, becoming a prepaid card issuer brings numerous opportunities and potential for growth.