NCTC and NetSpend’s Prepaid Initiative – A Customizable Program to Meet the Needs of Your Clients
After years of learning about our unbanked and under-banked populations, we know that the needs, wants, and actual uses of prepaid debit cards differ for each client. Many variables influence how a prepaid debit card is used, including household size, education, employment status, income levels, access to technology, and computer competency. Clients are able to use the NetSpend prepaid card as a method to receive their tax refunds and can take advantage of the card’s more extensive options- online budgeting tools and payback perks. Clients are provided a $10 spending cushion without overdrafting their accounts, a savings bucket with 5% APR, and helpful budgeting and financial management guidance.
For added convenience, clients leave the tax site with a temporary card that can be used prior to their receipt of a permanent card. This helps avoid any complications and additional burden for tax site staff and volunteers. The NetSpend card is helpful at any stage of life or income bracket, whether clients are looking for a short-term solution while paying off debt, a second account for better financial management, a long-term account for a family, or an interactive way of teaching young adults/students about money.
Just like the clients we serve, each VITA site has their own goals and needs. Many programs are looking at ways to sustain their services, including and beyond tax preparation. To help with these concerns, the NetSpend card has a revenue-sharing component that can be used to collect funds specifically for your clients’ matched savings programs or for basic site needs. Organizations can opt to not use this component if preferred.
NCTC offers individual technical assistance, group trainings, and online prepaid training modules for volunteers or staff to help support your efforts serving unbanked and under-banked families and individuals. To learn more about the Prepaid Initiative and how to become involved, contact Soni Sinha at firstname.lastname@example.org or 312-346-6282.