If you’re a Representative Payee that’s relied on bank-issued prepaid cards to manage client benefits, the recent wave of prepaid card discontinuations from institutions like PNC, KeyBank, and Bank of America may have left you searching for a new solution. We also know that you have a lot on your plate – that’s why we’ve put together these key considerations when evaluating prepaid card options for your Rep Payee practice.  

1. Longevity and Stability

The recent trend in banks discontinuing their prepaid cards warrants a look at why so many institutions are making similar decisions about these programs. As American Banker reported, some banks, including Bank of America and KeyBank, cited financial and reputational risks – largely tied to fraud – as the reason for exiting their programs focused on government benefits distribution. But a deprioritization of prepaid cards more broadly may indicate that institutions are struggling to make a business case for keeping these programs up and running, even when fraud is not a major concern. 

Because you don’t want to find yourself replacing your prepaid card provider year after year, it’s a good idea to seek out an institution that demonstrates a commitment to these products and programs. 

Green flags to look out for here:

• One of their primary lines of business is prepaid cards
• You see them actively marketing their prepaid card program online, in mailers, or at conferences and events
• They have a strong history of serving Rep Payees and government benefit recipients

Red flags to watch out for here:

• If you find yourself struggling to find information about an institution’s card program on their website, it may indicate this program is not a primary product offering
• If a provider isn’t proactively talking about the program or putting advertising behind it, it’s unlikely this is a business priority
• Large institutions moving away from prepaid card programs serve a wide-range of customers, with Rep Payees making up a small portion of their focus, so they may not be as motivated to maintain products specifically for this group

2. Fraud Protection and Security

Combatting fraud is a persistent issue in the prepaid card space, especially when you’re dealing with government benefits. And mitigating fraud isn’t just important for cardholders who rely on Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), but also for the Rep Payees who manage these funds and the institutions who are maintaining prepaid card programs. When choosing a new prepaid card issuer, you want to look for one that prioritizes security and offers robust fraud prevention measures to help protect the funds you manage.

Green flags to look out for here:

• Real-time transaction data and alerts about purchases that could be fraudulent
• Ability to lock/unlock the card instantly with the click of a button
• A mobile app to easily review purchase history on the go

Red flags to watch out for here:

• No real-time data or alerts about purchases that could be fraudulent
• No ability to lock/unlock the card instantly if lost or stolen
• No mobile app to view where client funds are being spend

3. Customer Support for You and Your Clients

As a Rep Payee, there are times when you’ll need to get in touch with your card provider to ensure your clients have access to the funds they need. Similarly, your clients may have questions about the balance on their card or when their next funds transfer is scheduled. And while customer support for many prepaid card programs is often just a phone call away, their representatives may not be trained in supporting professionals like you and the communities you serve. When choosing a new prepaid card, finding one with responsive and knowledgeable customer support can save you time and stress.  

Here are some questions you can ask potential providers:

• How available is customer support for your clients?
• Do you offer customer support options for the individuals who Rep Payees serve?
• Are there any specialized resources for Rep Payees?
• Do you have any focus on clients who care for those living with intellectual and developmental disabilities?
• Is your customer service team trained to understand the unique needs of people living with disabilities?

4. Ease of Use and Accessibility

For professional Rep Payees, the benefits of a prepaid card solution can go beyond having a streamlined way to disburse personal needs allowances to their clients – though that’s obviously a critical feature. When seeking out a new provider, consider what other features or services they offer that could make your work easier.

Here are some examples of additional features that could be valuable to you: 

• An online platform that makes it easy to manage cards/funds for multiple clients
• Flexible, customizable funding options
• Access to transaction reports that help make SSA audits quicker and easier
• Ability to attach itemized receipts to your transaction history
• A mobile app to help manage clients on the go
• Replacement cards available without any wait (VCC cards)

While the current changes in the prepaid card landscape may seem challenging, they also provide an opportunity to reimagine how you manage client funds. Look for a provider that supports your long-term goals and empowers you to focus on what matters most: providing exceptional care and support for your clients.

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‍If you’d like to learn how True Link can support your practice with our True Link Visa® Prepaid Card for Rep Payees, read more or schedule a demo here.