Magazine article American Banker

RushCard Blames Widespread Service Disruptions on Processor Shift

Magazine article American Banker

RushCard Blames Widespread Service Disruptions on Processor Shift

Article excerpt

Byline: Jacob Passy

UniRush's transition to a new processor caused major service interruptions for users of its popular RushCard prepaid products.

The transition, which took place Oct. 11, left many of the company's customers without access to account information or their funds, making it difficult for them to complete payments, according to reports from Buzzfeed and CNNMoney. In the interim, service has been re-established to many customers, though a company spokesperson could not comment precisely on how many continue to be affected. RushCard would not publicly name the card processors involved in the transition.

"At this time, our system is up and running and we are processing deposits and transactions," RushCard chief executive and chairman Rick Savard said in an emailed statement. "A small number of accounts are still in an inactive state."

The incident had a major impact on many customers' finances given their reliance on prepaid cards in lieu of a traditional bank account. In general, underbanked consumers represent the largest group to use prepaid cards, according to a June study from Pew Charitable Trusts. RushCard customers have taken to social media to complain about being unable to pay their rent, handle utilities bills or receive direct payroll deposits during the transition period.

The company noted in posts on social media that customers' funds and personal information remained secure through the incident. Heavier-than-usual traffic to the company's website caused it to go down at one point, but it was operational as of Oct. 14.

In the wake of the outage, the company has undergone a major, multi-channel effort to contact its audience. The company set up command centers in New York and Cincinnati to handle outreach to affected customers.

UniRush has also relied heavily on Facebook and Twitter, in addition to emails and phone calls, because many RushCard customers are active on social media. …

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