Prepaid Card

Prepaid Card Service Provider

Prepaid Cards have proved to be a game-changer in the contemporary world. It is a phenomenal outcome of the ever-evolving financial landscape that’s getting more customer-oriented. Prepaid Cards work on the principle of stored value and are also popularly known as the stored-value card. Unlike traditional cards that are linked to a bank account, it doesn’t require any third party to process the transaction. This eliminates the need for network access to process payments made by customers. A Prepaid Card can be used to pay for a wide range of goods and services depending on its acceptability by the vendor/store.

 

Key Features

A quick look into the most prominent features of a Prepaid Card.
  • Zero balance Prepaid Cards.
  • Quick approval and activation.
  • It doesn’t require any bank account. 
  • Secured with industry best practices. 
  • Supports online and offline payments. 
  • Easy balance transfer to another card. 
  • No network is needed for processing transactions.

What’s New with Prepaid Cards?

Most people often wonder how prepaid cards are different from debit or credit cards. Well, there are a lot of significant differences which make the Prepaid Card stand out from other plastic money. A debit or credit card is issued by a financial institution and requires their intervention to process payments. However, Prepaid Cards don’t need any third-party input. It just requires the customer’s consent to process the transaction. It is already loaded with cash balance which is similar to owning cash. Since there are no third parties, it can operate without any network, which gives it a significant edge over traditional banking card(s).

 

Prepaid Card Benefits

There are numerous benefits of using a Prepaid Card. Here are some of the most prominent ones.
  • Reduced risk of overspending as compared to credit cards.
  • Much safer than carrying cash.
  • It can be used to make payments in seconds.
  • Easy to use and reload balance into the card.
  • No need to open a bank account separately to use the card.

Prepaid Card Benefits for Businesses

Key benefits of accepting Prepaid Cards for businesses.
  • No third-party involvement or network lags.
  • A seamless way to process transactions.
  • An alternative payment method for customers.
  • Easy to keep track of and reward loyal customers.
  • Doesn’t require a learning curve to process the payments.
  • Access to insightful customer data for transactions made using the Prepaid Card.

Commonly Used Prepaid Cards

Here are some of the most common types of Prepaid Cards issued by business to customers.

  • Gift cards
  • Virtual Prepaid Cards
  • Retail Prepaid Cards
  • Payroll Prepaid Cards
  • Reloadable Prepaid Cards
  • General-purpose Prepaid Cards
  • Online shopping Prepaid Cards 

Got Questions?

Here is our FAQs section to help you to better understand all about our product.

A prepaid card is a form of plastic money that works on the stored-value model. It doesn’t require any third-party financial institutions to process transactions. Customers can quickly pay their expenses using a prepaid card without network availability. It contains a specific sum of money that the customer recharges with. There is a cap on the total value, which can be stored on a prepaid card. It can vary based on the needs and preferences of a customer and the policies of the card issuer. It makes transactions seamless and efficient. 
Prepaid cards are different from debit or credit cards. Both debit and credit cards are issued by a financial institution, and whenever a transaction is processed, it requires third-party intervention. Therefore, it is mandatory to have network access to use credit or debit cards. Furthermore, credit cards come with a prespecified limit that the card issuer sets after evaluating the customer’s credit profile and history. However, a Prepaid Card doesn’t require credit profile evaluation. Instead, the balance available is set by the customer based on the amount they have recharged it with. On the other hand, debit cards do have some similarities with prepaid cards, but there is a significant difference. Unlike a debit card, no bank account is required to use a Prepaid Card.
There’s a lot that can be done with a prepaid card when it comes to financial transactions. Whatever you can do using cash can be done using a Prepaid Card. It can also act as a replacement for traditional debit or credit cards to a great extent. Shopping online, utility bill payments, purchasing groceries, booking air tickets, paying at a restaurant, and much more can be done using prepaid cards. However, the extent of possibilities depends on the acceptability and the type of Prepaid Card you are using for transactions.
No, you don’t necessarily need to open a new bank account to use prepaid cards. Most Prepaid Cards don’t require any financial intermediary to process transactions. Therefore, opening a bank account with a respective financial institution is unnecessary. Using a Prepaid Card is just like carrying cash but in a highly secure way. You don’t have to go through the hassles of opening a new bank account to make payments using the same. 
The answer to this question is highly subjective. It depends on the policies of your card issuer and the type of prepaid card you are carrying. For example, most Prepaid Cards issued by financial institutions allow users to withdraw cash at ATMs. Usually, open-looped Prepaid Cards allow users to withdraw money from ATMs. Currently, cash withdrawal is permitted for full-KYC compliant PPIs (Prepaid Payment Instruments).  
 

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