More and more consumers around the world are turning to prepaid for payments. The question you may be asking yourself is, “Why?” For starters, prepaid is convenient, secure, versatile, easy to use, and accepted almost anywhere. In many ways, prepaid cards
work like typical debit or credit cards, except they offer the advantages of both without any of the drawbacks! Need more convincing? Don’t worry, I’ve got you covered. Here are 10 reasons why you need to get a prepaid card today:
- REWARD YOURSELF
Prepaid is a great way to earn rewards. Some prepaid cards deliver on-going loyalty rewards that earn points—which then “convert to cash”—for a variety of actionable behaviours or activities, including purchases, rebates, incentives, or a job well done at
the workplace. Customers, distributors, or employees can accumulate and redeem rewards as they see fit. Users accumulate points in their own personal e-wallet. Whenever they choose to, they can simply click to convert their points to cash, directly on their
prepaid card. Studies show that flexible rewards lead to better satisfaction, as they are more personal to the user, and with prepaid, cardholders can purchase exactly what they want.
2. YOU ARE PROTECTED
When it comes to finances, peace of mind is extremely important. With prepaid, your funds are protected, so you can sleep easy at night knowing your money is in good hands. With no credit or bank account information at risk, zero-liability protection, enhanced
security, instant reporting, and real-time monitoring, plus less personal data available, using a prepaid card is safer than using a debit or credit card and decreases the chances of fraud, theft, and loss. Even if you do become a victim of a fraud attack,
you can’t lose more than the balance on your prepaid card.
3. NO CREDIT OR BANK ACCOUNT REQUIRED
Spotty borrowing history? Poor credit? No credit? No problem! Meeting the requirements for a credit card or a bank account can be a hassle. Financial institutions may ask for minimum monthly balances/spends, credit history, and multiple pieces of identification
and forms. With a prepaid, all you need are the funds to load onto your card, plus a small activation fee. No credit application is required, no credit is needed, and approval is guaranteed with verified cardholder information for any member aged 16 years
and older. Prepaid allows everyone to take care of their everyday financial needs.
4. RELOAD FUNDS WHENEVER YOU WANT
An open-loop reloadable card is, well, reloadable! Unlike closed-loop products, such as a store gift card or a single-use card, reloadable prepaid cards can continuously be topped up with additional funds at any time, making it a great option for paying
bills, making purchases, and handling your day-to-day financial needs. Putting money onto a prepaid card is easy because there are so many different options. Some cards are loaded by the prepaid card owner themselves, while others are loaded by an employer,
business/merchant, or government agencies. With the ability to reload almost instantaneously at the click of a button, open-loop prepaid cards are replacing cheques and gift cards as a cheaper, more secure, and faster way to send and issue payments. The flexibility
offered by reloadable cards also makes it a superior alternative to direct deposit or wire transfer.
5. MONEY MANAGEMENT MADE EASY FOR YOU…
Many people are turning to prepaid cards out of a desire to control spending, eliminate debt, and cut down on costs. Money management and frugal financing are not easy; creating–and sticking to–a budget takes hard work and discipline. Sometimes, you need
a little help. A prepaid card makes your life easier because you can only spend what you’ve deposited onto the card. Accounts can also be set up to limit/restrict spending as needed. This is a great way to build good financial habits and cut down on debt.
The days filled with regret over expensive impulse buys are over.
6. AND YOUR KIDS
Prepaid cards are a smart and convenient way to teach children about money management. Prepaid money management tools enable transfers from one family member to another, allowing funds to easily be sent to students away at school. It also gives children
the opportunity to begin saving up allowance or chore money. Accounts can be set up to limit/restrict spending as needed. Thanks to its online platform, cardholders have 24/7 access to view and track their purchase history and balances in real-time via a dedicated
web portal or the truTap mobile app, anywhere, anytime.
7. EASY TO USE AND ACCEPTED EVERYWHERE
The convenience of prepaid allows millions of people to buy what they want, where they want, whenever they want. Unlike gift cards, open-loop reloadable prepaid cards are not limited to a specific store. Prepaid cards can be used anywhere that Visa is accepted,
meaning that you can essentially make purchases all over the world. You can even use your card to withdraw cash from ATMs, pay bills, and shop online.
8. AVOID EXPENSIVE FEES & UNPAID BALANCES
While prepaid cards do have fees, they are significantly cheaper than banks or credit cards. The average overdraft fee is $30 per transaction, and if you’ve ever suffered the pain and indignity of being hit with one, you’ll know that banks have no problem
giving these out for even the smallest of infractions. With prepaid, you can’t go over the predetermined limit set on the card—if you try to make a purchase for more than the money on the card, the transaction will be declined. Likewise, there is no credit
with a prepaid card, so it’s impossible to create debt. This means that there are no interest charges and no balances to pay off!
9. YOUR MONEY IS SAFE
Keeping a lot of cash on hand is not a good idea—it isn’t safe, and you’re potentially putting yourself at risk of losing the money or having it stolen. Cheque
fraud is also a big problem. Prepaid is a safer and more secure way to access your money than traditional payment methods such as cash or cheques. Funds are loaded onto cards instantly, eliminating the chance of cheque fraud, physical theft, or lost cash.
If your prepaid card gets is lost or stolen, you not only have financial protection (see #2), but the card can also easily be replaced and the funds transferred to your new card.
Prepaid solutions have a vigorous back-end reporting system. Cardholders can track their transactions and get up-to-the-minute updates on their account information, including balances, purchases, and spending habits. All transactions are monitored in real-time,
providing transparency, reducing the possibility of fraudulent activities, and allowing for quick action to be taken in case of suspicious transactions.