Prepaid Cards
A prepaid card is a type of payment card that is pre-loaded with a specific amount of money. It is not linked to a bank account, and users can only spend the amount that has been loaded onto the card.
Frequently Asked Questions
Prepaid cards are pre-funded with a specific amount, and spending is limited to that balance. In contrast, debit cards draw funds directly from a linked bank account, while credit cards allow users to borrow money up to a certain credit limit.
Prepaid cards offer a secure and efficient way to distribute funds. They are more secure than traditional payment methods, such as cash and checks. And they’re great for a variety of purposes—businesses can use prepaid cards for one-time payments, rewards, consumer and sales incentives, employee per diems and more. Prepaid cards also provide a digital trail, simplifying reconciliation and record-keeping.
Physical prepaid cards are plastic cards designed for both in-person transactions and online use. Much like a physical debit or credit card, they can be used at point-of-sale terminals, for online purchases and sometimes to withdraw cash from ATMs. Virtual prepaid cards can also be used like a debit or credit card, but they exist entirely in a digital format. They can be spent online or added to a mobile wallet for in-person purchases. Advantages of virtual cards include instant delivery and enhanced security.
