Pre-paid mastercard currency holding?

TauntFourstarTauntFourstar Posts: 218 Bronze ✭✭✭
When I sell my gold and load my pre-paid card,
  1. Who holds that currency?
  2. How are those funds backed?
  3. Is this an asset to Goldmoney while loaded to my card?

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  • Love_HandleLove_Handle Posts: 14 Tin ✭
    @TauntFourstar @GoldIsCurrency, it seems that a company named Intercash provides Goldmoney's prepaid card product. I noticed that there is a note at the bottom of that company's web site which states that "All transfers of funds are processed by Intercash partner banks using the approved Intercash 'PrepaidGate' technology." That could mean the fiat loaded to a Goldmoney prepaid card is held by banking partners of Intercash until it is spent. Perhaps Goldmoney has an account with one of those Intercash banking partners in which prepaid card funds are held, in which case it would be a Goldmoney asset.

    What do you think? I'm interested in knowing some of the details of how such a prepaid card service actually works.
  • ShannaShanna Posts: 28 Tin ✭
    Possession is nine tenths, so if it's in the hands of a bank then in a crunch (think bail-in) it's effectively theirs. The same has always been true of investment brokers - perhaps even more so. You don't own those stocks, the broker does, and you have to trust them.
  • GoldmattersGoldmatters Posts: 3,942 Admin
    @Shanna there is an actual way to become a registered shareholder, but its not common
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