Prepaid2Cash, a service that converts network-branded (Visa, MasterCard, Amex and Discover) prepaid cards into cash, now is available as iOS and Android apps. After initial setup, the Prepaid2Cash app allows users to scan their prepaid card and receive payment via direct deposit, usually within three business days. Prepaid2Cash says it is the first company and only app available today that offers a cash withdrawal for prepaid gift cards that bear the logo from the big four network-branded payment networks.
Prepaid gift cards have become increasingly popular as an alternative to cash and often are used for employee incentives, customer rebate programs or gifting. While the extra income is always welcome, cards can get lost or forgotten, and often are saddled with usage-based restrictions or have diminishing values and fees, making it challenging for consumers to receive the full face value of the card. The obstacles are so great, in fact, that according to a recent study, more than $300 billion dollars in cards are issued every year, and anywhere from 25-50 percent of them go unused, leaving $75-150 billion of value on the table for consumers to recoup.
Prepaid2Cash charges a 7.5 percent processing fee, plus a $1.50 direct deposit delivery fee.
“Unrestricted cash is the most desirable to consumers,” says Peter Vogt, co-founder of Prepaid2Cash. “As a financial executive and consumer myself, I experienced firsthand the challenges when trying to use my prepaid gift cards. Prepaid2Cash has applied technology to a widespread problem, and provides consumers with an option that enables them to unlock cash from their prepaid cards and have the freedom to pay for things like car payments, travel, rent or perhaps simply put the money to work for them in savings.”
Features of the Prepaid2Cash app include:
- Quick cash: Transaction approvals and direct deposit settlement within two to three business days.
- Simple scanning: Customers are able to quickly scan their prepaid cards without requiring long form data input.
- No account number required: Prepaid2Cash offers a secure portal to log into bank accounts for user’s bank online credentials so no need to remember bank account or routing numbers.
- Confident security: Going mobile improves security while speeding up access for customers, says the company. IOS users can use TouchID and Android users can use a customer PIN.
Prepaid2Cash was founded in 2011 by two financial technology entrepreneurs in San Francisco. It officially launched to the public in 2016.