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 can also be referred to as a stored-value card. They are issued to clients under anonymity as there's no need for attachments with individuals.
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 many types of prepaid cards but the most used are the closed system prepaid card and the co-branded prepaid cards.
Closed system prepaid card, this type of cards are issued by a merchant and is used strictly to pay for services rendered by the brand or items purchased and no other. These closed prepaid cards are usually not of huge value, and can be compared to gift cards.
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.
What Are the Benefits of Having a Prepaid Card. Security has to be the main benefit of using a prepaid card, and this is attributed to the fact that it isn't registered with anyone's account or name.
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.
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 can also be referred to as a stored-value card. They are issued to clients under anonymity as there's no need for attachments with individuals.
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 many types of prepaid cards but the most used are the closed system prepaid card and the co-branded prepaid cards.
Closed system prepaid card, this type of cards are issued by a merchant and is used strictly to pay for services rendered by the brand or items purchased and no other. These closed prepaid cards are usually not of huge value, and can be compared to gift cards.
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.
What Are the Benefits of Having a Prepaid Card. Security has to be the main benefit of using a prepaid card, and this is attributed to the fact that it isn't registered with anyone's account or name.
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.
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 good choice.. Check here for free reprint license: Definition Of Prepaid Card Program..
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