Payment News

First Data Corporation, based in Atlanta, Georgia and a worldwide leader in the payment processing industry released a prepaid cards services called SpendTrend Closed-Loop. They released the analysis records for users in the United States and compared redemption, activation, and reload rates by brands, spending and gift trends.

Merchants that offered prepaid programs were more aggressive towards the end of the year when the holiday season approached. Compared to last year, volume transaction for prepaid cards increased significantly. In the analysis, dollar volume rose from 2009 to 2010 by 8.9%. Activation transaction increased by more than 11% during the same period.

The average ticket size of most activation saw a huge decline which was a huge improvement over October’s decline rate. Many consumers bought gifts for the holiday and there was an increased in of the overall value of the prepaid closed-loop cards that were used to purchase goods and services.