Patriot Bank subsidiary Patriot National Bancorp (PNB) has acquired the debit card deposits from a US-based debit card issuer for corporate, consumer, and government clients.
The name of the provider and processor of prepaid debit cards has not been revealed.
The deposit balances included in the deal is expected to grow up to $52m by next week.
As a result of this acquisition, Patriot has become the depository and issuing bank payment partner for these pre-paid cards.
The Connecticut-based bank will verify, control and monitor the card transactions to ensure merchants receive quick and accurate payments at their banks.
Patriot will also ensure that the funds are accurately routed to correct the customer’s debit card account when they make deposits in cash via various networks.
This acquisition has been approved by the US Office of the Controller of the Currency (OCC).
Patriot Bank chairman Michael Carrazza said: “We are pleased to have successfully completed the bank’s first, value-enhancing pre-paid card transaction, which is a pivotal move towards the Bank’s longer-term deposit gathering strategy and will increase the bank’s net interest margin.
“Our expansion into this finance sector further enhances Patriot’s brand and broadens the services we can deliver to our banking clients.”
Founded in 1994, Patriot Bank operates nine full-service branches in Connecticut and New York. It offers lending products and services across the country.