These are cards that have a specific amount of value on it, which has been pre-stored earlier by the cardholder or someone else; these cards are neither linked to any account nor registered under anyone's name.
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.
Prepaid card programs work just like utility prepaid cards, when the stored value is exhausted, the card owner can decide to dispose the card or top it up with more money for continuous usage. The stores value is monitored by computers of the issuing company.
The card issuing company keeps track of the card through the use of computers and when the monetary value is finished, they are blocked immediately.
There are two main types of prepaid card programs, they are closed system prepaid card and co-branded prepaid cards. There are other types of prepaid cards but these are the most common ones.
Closed system prepaid cards are cards that are issued by a business enterprises, and is used only to pay for transactions with the enterprise. They are usually of small value and are most times used in purchase of small gift items and groceries.
Co-Branded prepaid cards are produced in partnership between a bank and one or more business enterprise, these cards are limited to use job these business enterprises and they have the logos of the business enterprises on them.
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.
Prepaid cards are issued on the basis of the money stored and not by your credit; even when there's no money in the account it will still be issued. Prepaid cards are well accepted, even more than credit cards. It saves money for the users and also reduces overspending. Prepaid cards are giving more values to the customers.
Another benefit prepaid cards provide is that, when they are issued, there is no need for a background check of the credibility of the holder. Even if the card holder is indebted to the bank, the card will still be issued to him or her. With prepaid cards, there is no need to sign pay off consent unlike with credit cards.
Prepaid cards can be used as a substitute for credit cards. Prepaid cards can also be used to cut down on spendings which could be an advantage the holder. Another benefit of prepaid cards is that they can be used to get cash from ATMs just like debit cards, as long as you have enough money on the card.
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.
Prepaid card programs work just like utility prepaid cards, when the stored value is exhausted, the card owner can decide to dispose the card or top it up with more money for continuous usage. The stores value is monitored by computers of the issuing company.
The card issuing company keeps track of the card through the use of computers and when the monetary value is finished, they are blocked immediately.
There are two main types of prepaid card programs, they are closed system prepaid card and co-branded prepaid cards. There are other types of prepaid cards but these are the most common ones.
Closed system prepaid cards are cards that are issued by a business enterprises, and is used only to pay for transactions with the enterprise. They are usually of small value and are most times used in purchase of small gift items and groceries.
Co-Branded prepaid cards are produced in partnership between a bank and one or more business enterprise, these cards are limited to use job these business enterprises and they have the logos of the business enterprises on them.
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.
Prepaid cards are issued on the basis of the money stored and not by your credit; even when there's no money in the account it will still be issued. Prepaid cards are well accepted, even more than credit cards. It saves money for the users and also reduces overspending. Prepaid cards are giving more values to the customers.
Another benefit prepaid cards provide is that, when they are issued, there is no need for a background check of the credibility of the holder. Even if the card holder is indebted to the bank, the card will still be issued to him or her. With prepaid cards, there is no need to sign pay off consent unlike with credit cards.
Prepaid cards can be used as a substitute for credit cards. Prepaid cards can also be used to cut down on spendings which could be an advantage the holder. Another benefit of prepaid cards is that they can be used to get cash from ATMs just like debit cards, as long as you have enough money on the card.
About the Author:
There are numerous prepaid card programs to select from nowadays, choose the most suitable for your business. Deciding to get co-branded credit cards for your corporation is definitely a good choice.
No comments:
Post a Comment