NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Bank Freedom, a wholly owned subsidiary of Prepaid Card Holdings, Inc. (Pink Sheets:PPDC), announced today that it is leaving MetaBank (NASDAQ:CASH). Bank Freedom intends to begin issuing its new prepaid cards through a new issuing Bank in May or June 2011 and phase out of MetaBank completely by November 2011.
“In 2010 we switched processors to reduce our processing costs. Our business model since inception has been to offer consumers innovative prepaid card programs with low pricing and robust features. By switching issuing banks we can further reduce our cardholder fees without decreasing our profit margins,” stated Bruce Berman, CEO of Bank Freedom.
Bank Freedom recently informed MetaBank that it had contracted with a new issuing bank for the Bank Freedom Prepaid Cards. MetaBank recently informed Bank Freedom that it is not going to renew the existing agreement between Meta and Bank Freedom which expires November 17, 2011.
About Prepaid Card Holdings, Inc.
Prepaid Card Holdings, Inc. is a provider of financial services in the prepaid debit card industry. The company, through its wholly owned subsidiary, offers prepaid debit cards to America’s estimated 60 million underbanked citizens. In addition to the underbanked consumer demographic, small and mid-size businesses have found a much needed product with the company’s Prepaid Business Expense Card Program. With the diminishing credit card markets, companies need a new way to fund employees’ expenses other than through traditional credit cards or cash reimbursements. For more information about Prepaid Card Holdings, Inc. visit www.PrepaidCardHoldings.com
FORWARD-LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties and the company assumes no obligation to update any of the forward-looking statements in this release.