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Prepaid Cards Program: What Are They And Their Uses?

By Jane Hudson


Prepaid Cards are an alternative to carrying money about. Funds are been deposited in prepaid cards when they are newly acquired and subsequently topped up when the funds are been exhausted. Therefore, it is pay before. The cards are also used to buy online because they are have no credit cards. The cards are good for budgeting and also helps in reducing spending.

The prepaid card program works in a very simple and easy to understand ways. The moment you get the card, you decide the amount of money you want on it. Although, it comes with an higher limit of how much you can have on it. And as you spend the money day-to-day, you need to top it up from a bank account, which could be through sms, phone call, or visiting a Paypoint.

Co-branded prepaid cards on the other hand are designed for businesses and partnering companies for their customers. The cards carries the partnering retailers and the issuing company logo.

A prepaid card could also be provided through a third party who makes deposit on the card after the suppose card holder must have presented the deposit receipt to the third party provider. Having a prepaid card does no necessarily means that one must have a bank account.

Various Types of Prepaid Cards Prepaid cards are in diverse types, each having it own purposes and uses for every customer. The main types of prepaid cards are:

Travel prepaid card: This is used prior to traveling to a foreign country. They can be loaded in foreign currency

Business prepaid cards: They are designed for employees to limit their spending.

Government prepaid card: The type of prepaid card used for government disbursement such as insurance, payroll, etc.

Gift prepaid card: Provided by a third party. They are non-reloaded. They are gifts cards and also comes with a pre-loaded gift amount.

Student prepaid card: Usually pre-loaded for students so they can spend directly from it.

Student prepaid card: Designed for students. It is loaded with funds for students to spend directly from. Payroll prepaid card: Designed for the payment of employee payroll. It is given as a paycheck to employees by the employer.

Having a prepaid card comes with some benefits which include; having a prepaid card enables the card holder to buy things online, in person, through order, or via the phone. It comes with a 14- 16 digit PAN number which is all that is needed when making a non-appearance purchase. It allows the card holder to set a spending limit, you can control your spending limit. It does not have a credit check thus, the card holder can run into debt.

Finally, co-branded prepaid card can help to promote the awareness of the issuing company and the third party provider. Prepaid card brings about convenience for the card holder.




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