Fed Approves Green Dot Application To Become Issuing Bank on Prepaid Cards

Regulators have given the go-ahead for a prepaid debit card services provider to become the issuing bank for the cards, a first for the market if Green Dot Bank goes forward with the proposal to acquire GE Capital Retail Bank’s (GECRB) Wal-Mart brand prepaid debit card business, according to the Federal Reserve Board.

Green Dot Corp. subsidiary Green Dot Bank will become the issuer of the Wal-Mart cards, a product Green Dot Corp. already provides technical services for as a prepaid card program manager, the Nov. 22 release said. Green Dot Bank would acquire a total of $276 million in ...