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They just took a company like ePass out of the equation and they took on that role. Of course they use a regular bank to issue the cards and transactions. It's pretty obvious by now it was ePass that screwed the pooch and with this method you're taking the "middle man" out of the equation.
And for everyone bitching that the funds could be frozen? Just take it out of the ATM when it gets deposited to your card. Or if you need to purchase something use the card, just dont leave a large balance. High fees are usually associated with cards like that but its a convenient way to go.
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