Sterling Bank, the principal operating subsidiary of Sterling Financial Corporation this week launched two new prepaid card products, one version called the Everyday Cash Card and a student version called the Student Everyday Cash Card.
Both cards are similar to a debit or credit card in that they can be used anywhere Visa debit cards are accepted and at ATMs around the world. However, with prepaid cards, cardholders do not take on debt as they would with credit cards, and they are not linked to a deposit account like debit cards, meaning no overdraft fees can occur. These cards simply hold a balance of funds loaded onto the cards by the cardholders until purchases draw them down to a zero balance, at which point the cards can be reloaded with funds.
Prepaid cards, which are personalized with the cardholder’s name, also are eligible to receive direct deposit of payroll and government payments.
The student version of the card provides parents or guardians a way to send funds to children away from home, and serves as a tool to begin financial-management education.
“Sterling’s prepaid cards offer an affordable alternative for those who want a traditional checking account,” said Patricia Baughman, SVP and director of Corporate Product Management and Market Research at Sterling Bank. “They also are great for customers who travel or make frequent online purchases and prefer to protect their primary account information. Additionally, they are a great budgeting tool, offering a means to control spending.”
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