Prepaid Rebate Cards Gain in Popularity

MONTVALE, N.J., April 12 /PRNewswire/ -- Prepaid rebate cards have been growing in popularity with consumers as a safe and convenient way to receive the promotional payout. Today, more than 83% of consumers are actively seeking out rebates, so these cards are sure to find their way into more hands in 2010 and beyond. The Network Branded Prepaid Card Association (NBPCA) promotes the use of prepaid rebate cards as tools to give consumers instant access to their money and function more conveniently than the rebate payouts of old that required a paper check be deposited to a bank or check casher.

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"Industry research shows that more than $2.5 billion has been loaded onto rebate cards and 95% of consumers say they would definitely or maybe chose a prepaid rebate card over other options like checks," said Kirsten Trusko, NBPCA President and Executive Director. "Many of the value-minded consumers that redeem rebates are part of the 60 million underbanked consumers without bank accounts. This demographic appreciates the ability to use the prepaid card right away and not lose a percentage of funds to check cashing costs or basic checking account fees."

Prepaid rebate cards are branded by American Express, Discover, MasterCard or Visa so the funds can be used anywhere to buy groceries, gas, textbooks, doctors office co-pays, even online – anything consumers would normally purchase with cash or a debit card. The cards come activated (or can be with a simple process) so the consumer can use them right away. No trip to the bank or check casher required. Many programs now offer the option to cash out with a bank teller– just like a rebate check. Some cards even include ATM access. Unlike checks that expire in 3 or 4 months, most rebate cards do not expire for at least twelve months.

The NBPCA offers the following tips for having a great experience with prepaid rebate cards:

• Familiarize yourself with the security and loss prevention features of your card. The value associated with your card can be recovered if the card is lost or stolen.

• Take a few moments to read about how to use your rebate card. Being knowledgeable about how your card works will help you have a great experience.

• Use your rebate card right away for the purchase of your choice.  Unlike rebate checks, you don't have to visit a bank or check cashing store to access your rebate.

• Check whether there are fees associated with non-usage. If the rebate card goes unused for several months, fees may kick in. Checks expire after 3 or 4 months but most rebate cards don't expire for at least twelve months. Read the information that comes with the card to make sure you understand the expiration dates and terms and conditions.

• Keep track of your spending and follow the instructions on the back of your card to verify your rebate card balance. If you are making a purchase for more than the balance on your card, tell the clerk the exact balance on the card before he/she rings up the sale and then simply provide another form of payment for the balance.

About the NBPCA

The Network Branded Prepaid Card Association (NBPCA) is a non-profit, inter-industry trade association that supports the growth and success of network branded prepaid debit cards and represents the common interests of the many players in this new and rapidly growing payments category. For additional information, visit www.NBPCA.org.

SOURCE Network Branded Prepaid Card Association (NBPCA)