No Bank Account? Go To Wal-Mart

Retail giant Wal-Mart held a national kickoff of its Money Center in Atlanta this week, and launched a Wal-Mart prepaid Visa card. It’s a move designed to offer financial services to Wal-Mart’s “un-banked” customers. Un-banked refers to millions of people across America who fall outside mainstream banking and who don’t have accounts with financial institutions.

According to press reports, Wal-Mart expects to have 15 Money Centers open in Georgia by year’s end, and will open 1,000 Money Centers in stores nationwide by the end of 2008. The retailer hopes to obtain more of its existing customers’ money with a broad array of services inside the trademark big blue box.

The Money Centers will offer services in both English and Spanish, and will offer bill pay, ATM, deposit and money transfer services, both domestically and internationally.

The Wal-Mart prepaid card essentially acts as a “checking account tied to the card.” Customers will be able to reload the card at Wal-Mart Money Center ATMs, and Money Center branches nationwide. The accounts are insured by the FDIC. Customers can add up to $3,000 on the card.

Wal-Mart earlier backed away from an effort to obtain its own bank-lending charter. At the time, according to press reports, Wal-Mart’s application stated the company’s desire to reduce back-office processing fees and provide expanded financial services to clients