Q:

How do you start a prepaid credit card company?

A:

To start a prepaid credit card company, set up a business name, choose a credit card company, design the card, set up a computer system and market the card, according to the Houston Chronicle. Specialize the card to target specific consumers.

Starting a pre-paid credit card business begins with establishing a business account and obtaining a tax identification number, notes the Houston Chronicle. Get the necessary permits and licenses from the local county government. Create a business plan that details the direction of the intended business.

Search for the proper credit card companies, such as American Express, Visa or MasterCard, reports the Houston Chronicle. Be aware of any fees that may discourage potential consumers from applying.

Work with a pre-paid card originator to design the company card, explains the Houston Chronicle. Fees are usually associated with the card design, but owners have a chance to choose a unique style.

Set up pre-paid cash registers to prevent consumers from using other cash advance centers. Owners can also profit from the fees. Market the pre-paid cards, and mention such enticing offers as no overdrafts or limits. Tailor the card to certain demographics or groups, such as parents who want to teach their kids how to use a card at a young age, claims the Houston Chronicle.

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