Semi-closed arrangement prepaid cards are agnate to bankrupt arrangement prepaid cards. However, cardholders are acceptable to redeem the cards at assorted merchants aural a geographic area. These types of cards are issued by a third party, rather than the banker who accepts the card. Examples cover university cards and capital allowance cards. The laws administering these types of cards are unsettled. Depending on the state, the issuer may or may not be appropriate to accept a money transmitter authorization or added agnate license. In accession to the District of Columbia, the states that crave a authorization cover Connecticut, Florida, Illinois, Iowa, Louisiana, Maryland, Minnesota, Mississippi, North Carolina, Oregon, Texas, Vermont, Virginia, West Virginia, Washington, and Wyoming. Note, these states absolutely crave licensing for agenda issuers. Added states may accept added attenuate licensing laws. Under 18 USC area 1960, it is a abomination for an issuer to conduct a money transmitting business after a license. Cardholders about ache from the aforementioned redressability problems that bankrupt arrangement agenda holders suffer. It is cryptic whether or not Chapters 7 and 11 of the Bankruptcy cipher are applicative to these types of cards.
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