Prepaid cards are another means to carrying money about in purses and pockets. Acquiring a new prepaid card requires the card holder load it up before using the card and then loaded up as the fund on it is used. Thus, it is termed pay before. The cards do not have credit hence, they can be used to make online purchases. It is a good way to reduce ones spending and also helps in budgeting.
The prepaid card is quit simple and easy to use and understand. The card holders can decide the amount of fund they want on the card. Basically, the card has a higher limit of funds deposit. A prepaid card is often times linked to a bank account which the card can be top up from. The top up can also be done through sms, phone call, or from a Paypoint.
Co-branded prepaid cards are designed by issuing company for businesses and partnering retailers customers. They carry the business logo 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.
Types of Prepaid Cards There are various types of prepaid cards and they are designed for the different uses and demands of customers. The major types include:
Travel prepaid card: Used when traveling to another country. Foreign currency can be deposited on it.
Business prepaid card: Made for employees to curtail their spending.
Government prepaid card: The type of prepaid card used for government disbursement such as insurance, payroll, etc.
Foreign prepaid card: designed for foreign currencies. It could be loaded with one or more foreign currency.
Foreign prepaid card: It is designed basically for foreign currencies. It can have one or more foreign currencies loaded on it.
Payroll prepaid card: Designed for employees for the payment of salary. It is loaded up by employers as a paycheck for the employees.
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.
The author loves to provide information on credit card programs and is dedicated to assisting people and businesses embrace the opportunities in the world of payments. The author is a passionate writer on the world of co-branded prepaid cards options and solutions.