July 6, 2011
It seems like the Fed’s final debit regulations bode well for Green Dot, as prepaid cards are exempt from the new debit interchange limits.
“Prepaid card company Green Dot (GDOT) rose 6.5% in afternoon trading after Janney Capital Markets analayst Thomas McRohan upgraded shares to Neutral on positive regulatory news,” reports Barron’s. “The release of the rules remove an overhang from the shares, McRohan argues.
Barron’s reports that Green Dot may have to add new usage restrictions, particularly in the area of bill payments, in order to remain free from the regulations.
“But it may be able to work around this issue, perhaps by reissuing cards through a bank with under $10 billion in assets (which would be exempted under the new Fed rules),” continues Barron’s.
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