We are big fans of prepaid debit cards. We’ve known (for a long time), that prepaid debit cards are perfect second chance bank accounts. We are starting to realize that prepaid debit cards can be also be a perfect first choice for your bank account. One of the biggest complaints that some people have about prepaid debit cards is that some can be difficult to “load” with new funds. Well, depositing money into your prepaid debit card account is getting even easier….

AccountNow and Moneygram International just announced a program where AccountNow will issue a new Visa prepaid debit card which will be available at MoneyGram agent locations all over the U.S. The new product will be available almost everywhere (at over 40,000 locations) and will allow users to easily deposit funds in the account at any Moneygram location.

Here’s what MoneyGram and AccountNow had to say about the new product:

The MoneyGram AccountNow Prepaid Visa card, which will participate in the Visa ReadyLink, Interlink, and Plus networks, joins an extensive line of MoneyGram products to serve underbanked consumers with a low-cost and convenient way to complete financial transactions such as bill payment and money transfer. No credit or bank account is necessary for card holders to load cash at any MoneyGram agent location, and consumers can use the card everywhere Visa debit is accepted.

“We recognize the value of offering a prepaid card as the underbanked population continues to grow and more consumers, who may not have access to a traditional credit card, seek secure and convenient alternatives that provide more control over their finances and fewer surprises such as over-draft fees, late fees and interest rate changes,” said Tim Summers, general manager of Consumer Products Americas at MoneyGram. “This is truly a win-win for both companies. AccountNow, with its expertise in acquiring, servicing and managing underbanked consumers, is an excellent partner to enable MoneyGram to deliver an exceptional prepaid card to our customer base. And, MoneyGram, with its 40,000 locations in the United States, brings a new level of convenience to AccountNow customers.”

Matt Montes, founder of AccountNow, said: “The value of working with MoneyGram on this co-brand card will be realized everyday by the thousands of consumers who sign up for this card. Consumers will save money and time with every use. This partnership fits perfectly with AccountNow’s strategy to work only with the world’s best organizations that share our philosophy of providing services to truly benefit our customers.”

Brian Triplett, head of global prepaid products, Visa Inc., added: “At a time when more consumers are focused on managing their finances, prepaid products can be a helpful budgeting tool, while empowering consumers with a better way to make everyday purchases, pay bills and receive payroll deposits. Prepaid is a key priority for Visa, and we are excited to work with MoneyGram and AccountNow to extend access to prepaid products and services to financially underserved consumers.”

The MoneyGram AccountNow Prepaid Visa Card is issued by MetaBank pursuant to a license from Visa U.S.A. Inc.

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We get asked this question all the time: “Who is ChexSystems, Inc.”?

Here’s the answer (at least as of the Spring of 2009 … as the ownership changes from time to time!).

At least as of the date of this blog post, ChexSystems, Inc. is a subsidiary of Fidelity National Information Services, Inc. Fidelity National Information Services, Inc. is a publicly traded company (you can find them on the NY Stock Exchange under the symbol “FIS“). They describe themselves as:

a leading provider of core financial institution processing, card issuer and transaction processing services and outsourcing services to financial institutions and retailers worldwide. FIS has processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 13,000 financial Institutions in more than 80 countries.

ChexSystems, Inc. was acquired by FIS when FIS acquired eFunds, Inc. in 2007. Now, FIS has a complete line of financial services products, including products related to account opening and decisioning (such as the bad customer database maintained by ChexSystems, Inc.).

It’s interesting to note that there is almost no discussion about ChexSystems, Inc. on the FIS website. Presumably, FIS is trying to avoid customer contact and complaints?

One of the few places where the connection between FIS and ChexSystems, Inc. can be found is in SEC filings made by FIS. Here’s a quote from FIS’ most recent annual report:

The Acxiom action was filed against the Company’s ChexSystems, Inc. subsidiary, while the Biometric suit was filed against the Company’s Certegy Check Services, Inc. subsidiary. The judge recused himself in the action against Certegy because he was a potential member of the class. The lawsuit was then assigned to a new judge and Certegy filed a motion to dismiss. The court granted Certegy’s motion to dismiss with prejudice in the third quarter of 2008. ChexSystems filed a motion to dismiss or stay its action based upon the earlier settlement and the Court granted the motion to stay pending resolution of the Florida case. The court dismissed the ChexSystems’ lawsuit with prejudice against the remaining defendants in the third quarter of 2008.

(That is, the SEC filing discusses a litigation matter involving FIS’ subsidiary, ChexSystems, Inc.).

Anyone have any more detailed information about ChexSystems, Inc. and their corporate structure?

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For the first time, the total amount of transactions conducted using debit cards (including prepaid debit cards) has passed the total amount of transactions made using credit cards. The popularity of debit cards is a result of a number of factors.

One big factor in the explosive popularity of debit cards is the fact that more and more people have credit or banking problems. People who can’t qualify for a good credit card, and people who want to save money by reducing their credit card expenses, love prepaid debit cards. Prepaid debit cards allow customers to shop on the Internet, rent cars, and do almost all the same things they could with a credit card (but without the expense of credit card interest rates!).

Prepaid debit cards are also perfect for people who have had banking difficulties in the past, and who can’t get a regular checking account. Many companies that issue prepaid debit card accounts (like AccountNow, the issuer of the hugely popular AccountNow Prepaid Visa and the AccountNow Prepaid MasterCard) do not use the ChexSystems systems, and allow customers with banking problems to open accounts without a hassle.

According to recent reports by the Nielson Company, debit card purchases are expected to climb 13% in 2008, to $1.2 trillion—compared with a 3% rise, to $1.9 trillion, for credit-card transactions. At Visa International, the World’s largest card company, debit spending could surpass credit this year.

This growth is great for people who use prepaid debit cards, as the banks will start to add even more innovative features to these products.

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Some of the most popular second chance bank accounts available are issued by a company called AccountNow.  This article takes a closer look at AccountNow and their products.  If you are comparing different second chance banking products, you need to check this article out.

AccountNow, Inc. is a privately held company based in Southern California.  They have been creating innovative banking products since 2004.  Their focus is on helping people who have a difficult time opening “traditional” bank accounts (including folks who have ChexSystems problems and people with bad credit).  Their two main products (the AccountNow Prepaid Debit Visa Card, and the AccountNow Prepaid Debit MasterCard) are designed to completely replace traditional bank accounts.

AccountNow has won a number of awards for these products, and are recognized as the leader in providing second chance banking products and services.  They keep coming out with more features.  Here’s a list of some of the features that the AccountNow Visa Card and the AccountNow MasterCard offer:

• Direct deposit,
• Tons of ways to deposit money into your account,
• Online bill pay and check writing,
• Online account access,
• FDIC-insured deposits,
• Transfer money to your friends and family (for free!),
• Credit Builder,
• Line of Credit (no more payday loans!).

There are simply no other companies that offer the same set of features and benefits in a second chance bank account. Plus, we love the fact that the fees for AccountNow cards are low compared to their competition.

For example, if you are currently using check cashing companies to cash your paycheck, you could easily save hundreds of dollars each year by getting an AccountNow card and having your paycheck directly deposited into your account (plus, you get access to your paycheck faster by doing this!).

Another thing we like about AccountNow is that they are a large company that is stable and financially sound. Plus, your deposits are Federally Insured (so you don’t have to worry about losing your savings). We highly recommend AccountNow products, and have heard tons of great feedback from readers who love their AccountNow cards.

If you have any comments or questions about AccountNow, please let us know! You can submit your comments using the form below and we’ll answer your questions quickly.

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Here it is—The #1 Non-ChexSystems Bank Account, that our readers LOVE.  The AccountNow prepaid Visa card is amazing. Get this card, and you will never care about ChexSystems again, and you will never miss your old bank again. The AccountNow prepaid Visa is basically a “bank account you carry in your wallet”. Everyone can get one, as AccountNow offers 100% approval rates! That’s right, even if you are on ChexSystems’ list, and even if you have terrible credit, you can qualify for the amazing AccountNow Debit Visa in seconds. Enrollment is simple, instant and guaranteed. There is no paperwork or lines, no security deposit, and one simple enrollment form. You can be banking again in seconds. Also, you can BUILD YOUR CREDIT by using your account, thanks to their amazing (and free) Credit Builder that comes with every new account.

AccountNow Prepaid Debit Visa Account Features and Benefits

Here are just a few of the amazing benefits you will enjoy with your new AccountNow Prepaid Debit Visa Card:

• $0 ACTIVATION FEE – when you load your card by direct deposit
• 100% Guaranteed Approval*
• Free Credit Builder
• Free Online Bill Pay
• Free Direct Deposit
• No Overdraft Fees or Minimum Balance Required
• Re-loadable with a $10,000 balance

* See the online AccountNow Prepaid Debit Visa Account application for details about terms and conditions of this offer. Reasonable efforts are made to maintain accurate information. However all prepaid debit card information is presented without warranty. When you click on the “Apply Here ” button you can review the prepaid debit card terms and conditions on the card issuer’s web site.

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