A new research report titled BIN Sponsorship of Prepaid Card Programs: Benefits for Financial Institutions outlines the basics of BIN sponsorship of prepaid card programs from the perspective of the financial institution providing the bank identification number that is necessary to connect to the major card brand networks and serve in effect as issuer of a prepaid card. The report defines the BIN sponsor’s role in the prepaid card value chain, responsibilities, ways to make money from BIN sponsorship, and the market scope.
Mercator Advisory Group’s report focuses on the many connections the BIN sponsor/issuer must have and maintain for a prepaid card program and identifies the party responsible for each portion of the transaction, areas of concern, and items to consider before becoming a BIN sponsor.
"Prepaid BIN sponsorship is poised to once again be of interest for issuing banks and credit unions as prepaid debit functionality propels the financial services industry forward. Almost every new product, feature, or functionality brought to market by fintech firms runs on a prepaid debit card platform, due to open networks and the use of application programming interfaces (APIs). The key to being a successful prepaid BIN sponsor is to follow the regulations and have continued and frequent oversight of the programs sponsored,” commented C. Sue Brown, director of Mercator Advisory Group's Prepaid Advisory Service and author of the report.
This research report is 24 pages long and has 8 exhibits.
Companies mentioned in this report include: Ace Cash Express, American Express, Discover, Green Dot, Mastercard, Netspend, Simon Malls, Visa, and Wal-Mart.