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Rev Worldwide, the global payment company that owns U.S. prepaid debit card provider Mango Financial, is launching a card reader service intended to give small businesses earlier access to capital.
The service, called RevCOIN, enables merchants to accept plastic payment methods at the point of sale via a mobile app or a credit/debit card reader that attaches to an iPhone or Android.
However, unlike many mobile payment platforms, which connect directly to a business’s bank account, the money made during each transaction is automatically loaded onto a Rev MasterCard Prepaid Debit Card for Businesses.
“Adding the debit card allows merchants to have access to money sooner,” says David Clifton, senior vice president of Global Merchant Services of Rev Worldwide, since the funds are instantly available on the prepaid payment method.
The fees associated with the Rev MasterCard Prepaid Debit Card include $2.00 per ATM withdrawal, 50-cents per ATM balance inquiry and 50-cents to text money to other Rev cardholders via the company’s YAP service. The card features a $10,000 load limit. Customers can withdraw up to $500 each day from an ATM machine. Higher limits may be awarded to select merchants upon request.
Business owners can also manage their money via the mobile app. They do have the option of pulling money from the prepaid card account to a traditional bank account. Clifton says, while Rev Worldwide does not charge for this service, there is a chance the bank on the other end of the transfer will impose a fee.
[Related Article: Are Prepaid Cards Taking Over the World?]
Hoping to stand out in the competitive card reader market, Rev is also offering a competitive price point for the product, charging merchants a 2.55% fee per swipe and 3.55% fee per manual card entry.
Popular card reader service Square currently charges a 2.75% fee per swipe and a 3.5% plus 15-cents fee each time a card number is keyed in. Intuit’s GoPayment charges 2.7% per swipe and 3.7% per keyed in transaction, but does offer larger businesses a plan that charges 1.7% per swipe and 2.7% per keyed in transaction in exchange for a $12.95 monthly fee.
RevCOIN users are charged $9.99 for the card reader when the sign up for the service. However, Clifton says this charge is refunded once the merchant records $400 in transactions.
While the target demographic is a bit different, this isn’t the first time a prepaid card has been paired with a mobile payments platform. American Express currently provides consumers access to its mobile wallet Serve via one of their reloadable prepaid products.
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