STOCKTON, Calif. — A new partnership between a Stockton nonprofit and a California-based financial services company is aiming to increase economic equality and give Hispanics an opportunity to build credit.
El Concilio and AlternaCard announced the partnership Friday, the first day of Hispanic Heritage Month.
The partnership offers prepaid MasterCard debit cards to anyone with a government I.D., including I.D.s issued by foreign governments.
"This is really important because it's going to give (Hispanics) an opportunity to get into the mainstream," said El Concilio's President Jose Rodriguez. "A lot more businesses are requiring debit cards and this card helps people establish credit, and then be able to access those services that before they may have been denied because they didn't have a card."
The debit cards can be used for purchases, direct deposits, to access credit and to transfer money to accounts in Mexico.
Rodriguez says announcing the debit card program the day before Mexican Independence Day is symbolic.
"We're going to create some independence from the junk fees that are normally associated with this transfer of money from the United States and Mexico," said Rodriguez, adding there will be no fees for international transfers over $300. "This card is going to reduce the fees for families to be able to send and keep more of the money in their pockets."
While the first cardholders will only be able to make international transfers to accounts in Mexico, AlternaCard officials plan to expand the transfer window to accounts in Ecuador, Honduras, Guatemala, El Salvador and the Dominican Republic.
"We're going to actually start with Mexico, and then we're going to just start branching off from there," said Virginia Madueno, incoming CEO of AlternaCard. "We're going into a cashless society so we recognize that (the cards are) super important, but we also recognize that there are safety issues with people carrying cash."
While many Hispanics simply can't access the banking system due to immigration status, others have a distrust in the industry, Madueno says.
El Concilio plans to hold events to educate the community about the new card system. One of the events begins 10 a.m. Saturday at the nonprofit's Family Center at 224 Sutter St. in Stockton.
"We're going to have to go through some education so that people understand that the card, once you load that money or your employer puts your direct deposit into that card, it's as good as (cash)," said Madueno. "The purpose is really to provide this incredible financial inclusion service with this prepaid MasterCard to the 1.5 million Latinos that do not have any kind of bank or bank services."
Watch more from ABC10: Central Valley Hispanic business community works together for Hispanic Heritage Month
