PayPal Launches Drop-Dead Simple Teen Prepaid Card & PayPal Account

Sometimes, banks forget the importance of simplicity, especially when it comes to less-than-crucial ancillary services such as a prepaid teen account. Sure, I’d love to have a reloadable card that my son could stow in his backpack for emergencies. But I’m not going to spend a half-hour looking for one, applying for a new account, and then trying remember where and how to access it (see note 1).

But if it was a painless process that was integrated with my online banking, I’d buy a half-dozen prepaid cards, one for each child, one to toss in the glove box of each car, and another for my briefcase (note 2).

It looks like PayPal is the first to step up to this challenge with it’s new student account (company blog post) which has been in beta testing since last November (beta site; note 3). Not only is the account free of charge (note 4), it took just 51 seconds to signup.

Signup & funding
Current PayPal customers can sign up their kids for an account in under a minute. That includes clicking on the <paypal.com/StudentAccounts> URL, completing the six-field app (see first screenshot), all the way to the approval screen confirmation (screenshot #2). And, half that time was simply logging in to my PayPal account. If I’d already been logged in, the total time to complete the application, process it, and receive approval was just 23 seconds! That’s the fastest financial services application I’ve ever completed by a factor of 10 (note 5).

The account, which shows up as a link at the top of the parent’s PayPal account (screenshot #3) includes parental controls for all transaction types and comes with both an online account and a PayPal prepaid MasterCard debit card. Both will come in handy for today’s teen, who cannot easily shop online without a credit or debit card of their own.

Transferring funds to the account takes just seconds and parents can choose from one-time loads or periodic transfers so the card can be used to accumulate an allowance (screenshot #4). Transfers show up in real-time, with a green color coding, after hitting enter (screenshot #5).

Overall grade: I give it an A+ for ease of use and an A+ for value, a winning combination. Nice work.

1. PayPal teen card application for current PayPal customers (12 Aug 2009)

2. Congratulations screen

3. Student account, and prepaid balance, shows up on the parent’s main account overview page

4. Funds transfer screen

5. The funds transfer is immediately displayed within the student account area

Notes:
1. The final item is why the Visa Buxx card never worked for me. I bought one but could never remember how to access it or add more money.
2. Verient is doing some very cool things to help in this regard, we’ll profile them here soon.
3. Hat tip to Payments News for the link.
4. ING Direct’s system for creating a new savings sub-account is similar speedwise, but it’s not technically a new account.
5. The only major fees, besides PayPal merchant fees, are the $1 ATM withdrawal fee and a 2.5% foreign currency fee.
6. For more info on online account opening, refer to the latest issue of Online Banking Report:

EFT Network Inc. Launches Remote Deposit Capture via Fax

Remote deposit capture (RDC) via mobile phone has to be the coolest way to make paper checks disappear from your office and reappear in your account. But from a usability standpoint, it leaves something to be desired, limiting its appeal to geeks with a check to deposit every once in a while. 

Businesses with several checks or more every week need something more convenient and easy to use. Proprietary scanners connecting to PC-based software apps work well, but require installation and training, not to mention $30+ per month in service fees.

 Enter FAXTellerPLUS, a new solution from Hawthorn, NY-based EFT Network, that uses the common fax machine for the input mechanism. The bank runs the software on its end freeing the user to get back to their business once the fax transmits.

Today’s press release says the four banks using the system are processing “thousands of transactions per month.”

How it works:

Bank sends customers a special sleeve that holds up to 3 checks to be transmitted and includes info on the customer so deposit can be directed to the correct account.
Customer transmits the check (front and back) to the bank via standard fax machine.
Bank sends confirmation back to customer via fax or email.
Funds are deposited in customer’s account and images viewable online.
If this works as billed, it could put RDC into the hands of micro- and small-businesses as well as consumers with access to fax machines at home or work. If any readers have used or tested the system, please let me know your experience by commenting here or emailing.

Bank of America Launches a Blog Finally

What better way to start the new year than to blog about a blog. And it’s big news. Bank of America, through its Center for Future Banking (see note 1), launched a blog called The Future Banking Blog. The blog, quietly began after Thanksgiving (note 2), has averaged about 2 posts per week,  about right for a banking blog (note 3).

The content so far has been wholly unrelated to Bank of America or its products. The blog is part academic, part strategic, bringing insights from the Center’s joint team of MIT academics and BofA business execs.

The design however, is pure Bank of America (see below). It uses the BofA color palette and includes a prominent powered by logo in the upper right. It’s also housed under a bank URL <futurebanking.bankofamerica.com>.

All in all it’s a good effort, positioning BofA as a thought leader in the upside-down world of commercial banking circa 2009.

Note:
1. The Center is seeking an Executive Director. The position was posted on Dec. 16, but given the holiday, it’s not too late to toss your name in the hat.

2. Hat tip to Colin Henderson at The Bankwatch for writing about it.  

3. For more info on financial institution bloggin,

VISA Launches Black Card

Step aside AMEX Centurion, VISA is entering the exclusive high net worth credit card business with their Black Card.

The perks?

The card is constructed of CARBON GRAPHITE (compared to titanium alloy for the AMEX Centurion)
24 hour concierge
Luxury gifts?
Annual fee is $495, compared to $2500 for AMEX
Only the top 1% of Americans will qualify for a card (fairly exclusive)
Leave a comment if you are approved for the card.