Credit card processor MyVirtualCard has launched Funds2Go Funds2Go.com, a debit card remittance system designed for account holders to pay their suppliers, employees, and affiliates.
The system allows users to transfer money from their account to a Maestro-based debit card supplied to their payees. The debit card can then be used at an ATM machine or point-of-sale worldwide.
“A lot people came to us and said that [other companies] have a debit card system and we have a lot of problems with them. You guys are always trying hard to please your customers, you should try to come up with a debit card program where people can access their funds at an ATM machine,” MyVirtualCard CEO Howard Cohen told AVNOnline.com.
The MyVirtualCard team has been working on the debit card project for about a year and they have had it implemented in house for about two months. The Funds2Go system shares a lot of platforms with the MyVirtualCard system and is designed to beat down wire transfer and check payments.
Funds2Go charges account holders 3 percent, up to $10, per transaction. It also has an incentive program that kicks back 20 percent of payouts to the account holder.
“Where a wire transfer costs anywhere from $15 to $35, here we’re offering a really low rate of 3 percent,” Cohen said. “What you would do in the past is send [the affiliate] a wire transfer and your affiliate would pay the cost of the wire transfer, case closed. Here, you send the money to your affiliates and we charge a maximum fee of $10, we’ll kick back the sender 20 percent of that.
“You’re actually making money, sending money.”
The second phase of Funds2Go will make the system look more like mainstream payment service PayPal, allowing account holders to fund their account with a credit card or through a bank account. Account holders currently use wire transfers to fund their accounts.
However, Cohen said before phase two of the project is implemented, the company’s executives want to make sure Fund2Go is secure and their bank will underwrite the planned e-wallet options.
“MyVirtualCard as a whole wants to be where any transaction needs to take place online, whether it be to receive money, to move money, to make a purchase online. So we always have our ear to the ground and we’re always trying to find out what people want and do it in a cost-effective manner,” Cohen said.
