It is not unheard of for people to bend the truth to land a sale. It just seems less unheard of in the prepaid industry. We are often approached by companies who have been promised a MasterCard or Visa prepaid card for months and after much waiting discover that there was no chance of the “processor” they were speaking to delivering.
This problem materialises when:
- The claimed processor say they work with an issuing bank but won’t tell you who it is.If a processor has an issuing bank sponsoring their products already they should be able to tell you who the bank is on day one. In some markets processors will require you as the programme owner to negotiate a deal directly with an issuing bank and they will say so right from the beginning. That process is fine as you know it is your responsibility. You should start worrying when the processor handles the relationship with the issuing bank and can’t say who the bank is or is promising that “it is about to be signed off”. Banks move slowly. Nothing is ever about to be signed off.
- Nobody can tell you what the BIN of the product is and your card is due for launch. One of the first steps in launching a programme is to register a BIN with MasterCard or Visa. It is a simple process. It should happen early on in the project.
- The processor can’t give you a test login to their system or show you any API specs. Prepaid systems can’t be built overnight. Whether the system is their own or being on sold, the processor must be able to provide you with a test login or any API spec to integrate with the system. Nine times out of ten if you push on this question you will discover that the “in house” system is very much “out house” in more ways than one.
- The processor claims to process tens of millions of transactions each month. The larger the claimed number, the less substance behind hit. There are very few processors in the market that truly process massive volumes. If your processor is not one of them and still claiming these volumes then there is something wrong.
So ask some questions. You will be surprised how it save you months of frustration.