Prepaid card is a type of payment cards that has an already fixed monetary value, and not attached or linked to any external bank accounts. They are different form debit cards, where the money is deposited and debited directly from the bank during a transaction. They are also unlike credit cards, where there are no credit limits from the card or the bank.
Prepaid cards are also referred to as Stored-value cards. They are usually not issued in the name of any individual and most times with anonymity just like with utility prepaid cards.
Stored-value cards are issued to people anonymously as they do not need to be issued under anybody's name just like in prepaid utility cards. Just like utility cards, where a stored values are also used, and when exhausted they are reloaded or thrown away, so also prepaid card are topped up with money.
Prepaid cards are mostly used for transactions or payments that are small like paying for bus tickets, paying for services at a caf or coffee shop, paying at phone booths, and paying for things from a vending machine.
There are many types of prepaid cards but the most used are the closed system prepaid card and the co-branded prepaid cards.
There are many types of prepaid card programs but the most used ones are the co-branded prepaid card and the closed system prepaid card.
The co-branded prepaid cards are issued by a card issuing company in partnership with one or more businesses to be used only for transactions with the businesses.
Benefits One of the most beneficial advantages of the prepaid card is Security. Since there are no attachments to the cardholders or any bank accounts, when card gets lost or stolen, the loss won't be unbearable and the card can be replaced easily.
Benefits of Using a Prepaid Card. The major advantage of using a prepaid card has to be the security it provides for the users. The cardholders are protected from frauds and theft even when the card is stolen. Only the stored value is lost.
Prepaid cards are easier to get because there isn't any background check to be done before it is issued. Even if you're indebted to a bank because of the use of a credit card, you will still be issued a prepaid card.
Bill Adams is a business strategist. He has been doing this for a few decades and now he works at a prepaid card section of a card issuing company. He thinks the use of co-branded prepaid cards is healthy for businesses and individuals.
Prepaid cards are also referred to as Stored-value cards. They are usually not issued in the name of any individual and most times with anonymity just like with utility prepaid cards.
Stored-value cards are issued to people anonymously as they do not need to be issued under anybody's name just like in prepaid utility cards. Just like utility cards, where a stored values are also used, and when exhausted they are reloaded or thrown away, so also prepaid card are topped up with money.
Prepaid cards are mostly used for transactions or payments that are small like paying for bus tickets, paying for services at a caf or coffee shop, paying at phone booths, and paying for things from a vending machine.
There are many types of prepaid cards but the most used are the closed system prepaid card and the co-branded prepaid cards.
There are many types of prepaid card programs but the most used ones are the co-branded prepaid card and the closed system prepaid card.
The co-branded prepaid cards are issued by a card issuing company in partnership with one or more businesses to be used only for transactions with the businesses.
Benefits One of the most beneficial advantages of the prepaid card is Security. Since there are no attachments to the cardholders or any bank accounts, when card gets lost or stolen, the loss won't be unbearable and the card can be replaced easily.
Benefits of Using a Prepaid Card. The major advantage of using a prepaid card has to be the security it provides for the users. The cardholders are protected from frauds and theft even when the card is stolen. Only the stored value is lost.
Prepaid cards are easier to get because there isn't any background check to be done before it is issued. Even if you're indebted to a bank because of the use of a credit card, you will still be issued a prepaid card.
Bill Adams is a business strategist. He has been doing this for a few decades and now he works at a prepaid card section of a card issuing company. He thinks the use of co-branded prepaid cards is healthy for businesses and individuals.
About the Author:
There are several prepaid card programs to pick from today, pick the most acceptable for your business. Deciding to get co-branded credit cards for your business is definitely a worthy choice.. Free reprint available from: The Benefits Of Using Prepaid Cards To Individuals..
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