Airline Virgin Australia has teamed up with Visa to add a pre-paid travel money card that can be loaded with multiple currencies to its frequent flyer membership scheme.
Would you trust an airline company with your deposits? What if it goes belly-up? Does Visa pay me back since airlines do not have deposit protection guarantees from the government? And what if I also paid for my airline ticket through the airline Visa? Does
the belly-up airline provide me with "services not rendered guarantee" protection and refund of airfare?
Well of course, Virgin are doing nothing more than put their logo on a standard Visa Card, and market it to their customer base as a Virgin card in return for a share in the transaction fees.
So yes, your money is in the (safe?) hands of Visa, in the event that 'Virgin goes belly up' so to speak.
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© Finextra Research 2014