What is a Prepaid Card?
Updated: Oct 9, 2020
Have you ever heard people talking about prepaid cards and wondered how a prepaid card differentiates from a casual debit card? Let’s take a closer look on this kind of card, and clear things out in our heads!
What is a Prepaid Card?
To make it easier, you can think of a prepaid credit card, as a gift card. Have you ever received a gift card on your birthday? They kind of work the same way. It allows you to deposit money in it before using it.
As long as the card is loaded with funds, you can conduct your purchases, or withdraw money, just like you do with an ordinary debit card. And you can pay either digitally (e.g. to an online shop), or in-store.
Prepaid Cards vs. Debit Cards*
The difference between these two types of cards is that, a prepaid card is not linked to a bank account like a debit card is. Instead, it is connected to a direct payment account; it can be loaded with money from various sources (e.g. online transfers, ATM direct deposits, etc.) and used thereinafter.
Not all people are eligible to own a debit card…Besides having an account with a bank, the issuance of a debit card also requires the submission of several KYC (Know Your Customer) documentation. Prepaid cards do not demand such preconditions.
*A comprehensive description of debit cards is reported on our "Differences Between Debit, Credit And Prepaid Cards" article. Check it out and learn more about it!
Benefits of Prepaid Cards
· Easy Registrations: Getting your own prepaid card is super easy. You simply need to be 18+ years old and show your ID to be approved. And once your ID verification is authorized… voila! You can have your prepaid card!
· Instant Deposits: As soon as you register for your prepaid card, you receive your account number. This means that you can easily and immediately load your card by transferring funds online, by phone, or by depositing money from an ATM! And then, you can complete your purchases! How convenient!
· Efficient Spending – No Overspending: If you have the tendency to overspend your money when using a traditional bank card, then a prepaid card is ideal for you! Prepaid cards provide a spend limit, that does not exceed your card’s balance. Hence, you can manage your money and only use the money deposited into the card. No more running past your balance!
Cashless payments are much easier and more efficient. WireWallet, as a smart online banking solution, allows you to manage your funds, by sending and receiving money digitally. To open an account with WireWallet, you can simply drop an email to firstname.lastname@example.org. If you’d like to acquire more information, visit www.wire-wallet.com or contact email@example.com.