What are Prepaid Cards?
A prepaid card is a type of plastic currency that allows users to load any amount of money onto the card and carry it with them. To be able to make smooth transactions, all you have to do is update your balance. The ability to do so at any time and from any location is an added bonus, since money may be reloaded via an online application, at any participating retailer in the area, or at any ATM. Prepaid debit cards and prepaid credit cards are a good alternative to cash since they are more convenient. They are similar to gift cards in that they allow users to spend the money until the current balance is depleted.
Prepaid credit and debit cards are provided by large banks and supported by significant corporations such as Visa, MasterCard, American Express, and others. Prepaid cards, on the other hand, are rather simple to get and use. Various prepaid card vendors on the market today provide such extensive services, making them a particularly appealing choice for those who do not have regular access to or interaction with a bank. Given the discounts and fantastic rates that Bankit offers on its prepaid card services, it is an absolute must-visit for anybody searching for all of the above-mentioned features in a single card.
The prepaid credit and debit cards for the modern customer
- Prepaid Credit Card: They provide you with more financial independence than you could wish for! The flexibility to purchase now and pay later, as well as additional incentives and bonuses, is a financial dream come true for many people.
- Prepaid Debit Card: You may have a smooth experience with these cards, from your weekly grocery shopping to a hassle-free transaction-ed vacation! You may go cashless and avoid the laborious checking processes with a prepaid debit card.
Types of Prepaid Cards
There are various types of prepaid cards, some of them are:
- Employer prepaid card: This card allows employers to deposit employee pay quickly and log transactions such as fee reductions, salary hikes, and bonuses.
- Gift prepaid card: Anyone with a gift card may use it to obtain excellent offers and discounts at any business that accepts it.
- Prepaid incentive card: Businesses may use this to keep customers loyal by implementing complete loyalty programmes.
- Travel prepaid card: To avoid the hassles of carrying cash and even FX transactions, travellers use travel cards that may be filled with the amount and currency they require.
- Benefits of Using Prepaid Cards
- The prepaid card may be used to make purchases both in the physical and online worlds. Parlays are convenient since they are comparable to prepaid debit cards and prepaid credit cards in terms of reloading the needed amount.
- Employers can limit how and when they can be used, ensuring that overspending and abuse of the organization’s finances are avoided.
- On the dashboard, you may see a complete record of all transactions. This eliminates any future scams.
- To avoid foreign exchange rate concerns when travelling abroad, amounts can be deducted and transacted in local currency at the current exchange rate.
- If a prepaid card is misplaced, it may be replaced promptly.
- It offers convenience, whether in terms of reloading the money or keeping track of transactions.
- In the event of theft, loss, or adequate transaction record-keeping, a prepaid card is safer than cash.
- The holder may keep their fiscal restraints in check and minimise overspending by setting daily and total spending limits, which are not available with prepaid credit and debit cards.
- Unlike prepaid debit cards and prepaid credit cards, a prepaid card does not need the holder to have a bank account.
How do prepaid cards work?
You can only spend the amount that is tied to the checking account that your card is linked to when using a conventional prepaid debit card. When using a prepaid credit card, you must pay your expenses within a certain amount of time. To use the benefits of prepaid credit cards and prepaid debit cards, one must meet certain criteria and have a bank account. Prepaid cards, on the other hand, have no such requirements.
Furthermore, because the amount is fixed on specific prepaid cards and may be reloaded as needed, it is easier to keep track of, as opposed to ordinary prepaid debit and credit cards with money going in and out.
Difference between Prepaid Debit card vs Prepaid Credit Card
- Despite the fact that prepaid credit cards and prepaid debit cards are widely accepted by retailers throughout the world. Debit cards, on the other hand, need cash to be accessible in the bank account connected to the card, whereas credit cards allow cardholders to make transactions even if the account is depleted.
- There are no fees to pay if you pay late to the merchant who issued your prepaid debit card, but it is necessary if you pay late to the shop that issued your prepaid credit card.
- Prepaid credit cards allow you to develop credit by making regular payments on borrowed funds, but prepaid debit cards do not.
- To make a transaction using a prepaid debit card, you must first reload it with money. If the funds are depleted. Prepaid credit cards, on the other hand, do not require cash to be reloaded prior to the transaction.
Limitation of Prepaid Debit Cards
- You can only make transactions up to the value of your account.
- To perform transactions, you must continually reload money onto your prepaid debit cards.
- Money does not earn interest because it is not tied to any account.
- They are subject to a variety of extra fees, which can be imposed for even little transactions like withdrawing or reloading.
Does can your company need prepaid cards?
- Prepaid cards provide a complete transaction history on the dashboard, which helps you keep better track of your spending.
- They assist you in better managing your financial limits because you can only transact up to the amount placed onto the card (unlike prepaid credit cards and prepaid debit cards).
Prepaid Cards: Introduction
The amount of money you can spend with a standard debit card is determined by how much money you have in the checking account to which it is attached. To use a standard debit card, you must have a bank account, but a prepaid debit card does not. The amount of money you have accessible on a conventional debit card will change from day to day as money travels in and out of your checking account. However, with the prepaid debit cards available on the market, you have a certain amount of money to spend that decreases as you use it and only increases if you reload the card.
There are several aspects that make these cards the best way to go for prepaid card services, some of them are:
- Prepaid cards with no balance
- With an OVD (official valid document) number, you may get started right away.
- There is no need for a bank account.
- Use at any store that accepts Rupay and for any merchant’s online transactions.
- Services for instant money transfer to any other card
- The mobile apps may be used to reload the card at any time and from anywhere.
- With operational bank-level security measures, it’s quite safe.
- Get rewards such as loyalty points and other perks.
- Take advantage of excellent discounts and rebates on fantastic brands.
Forms of prepaid cards
Prepaid Cards offers seamless prepaid card services to businesses as well as individuals in a seamless manner. Unlike the regular prepaid debit cards and prepaid credit cards, These prepaid cards have easy-to-obtain procedures with instant activation. The cards come with round-the-clock support with the intuitive card mobile application and bank-grade security features. Like prepaid debit cards and prepaid credit cards, these prepaid cards support payments across a host of online and offline channels like e-commerce websites, POS devices and ATMs pan India.
Most often the prepaid cards come in 3 different forms, as mentioned below:
Plastic: Plastic cards with EMV chips and NFC capabilities, such as prepaid credit cards, prepaid debit cards, and Bankit’s prepaid cards, enable online transactions and purchases at e-commerce sites. In-store contactless purchases are made easier with the smooth swiping technology on offline POS equipment. They even allow prepaid cardholders to withdraw cash from actual ATMs without the requirement for a bank account, which is impossible with prepaid debit and credit cards.
Virtual: Virtual cards are a digital instrument that is immaterial. They are exclusively used for online purchases and are issued using the smartphone app. Virtual cards are simple to purchase and load with a large quantity of data. This card’s quick transferability and acceptance allow you to conduct transactions and make purchases both online and in stores that only accept ‘cards not present transactions.
Wearable: These cards may be worn as a bracelet, key chain, mobile sticker, or wristwatch, among other things. Wearable cards enable tap-and-go digital transactions that are convenient to carry and safe in the event that they are misplaced.