A prepaid card is a type of card that has been credited or preloaded with a certain amount of money, thus enabling its holder to make payments with it. A popular form of prepaid cards is gift vouchers offered at a number of retail outlets worldwide. Individuals are able to load the card with a certain value and present the card as a gift to someone, thus allowing the person to purchase their desired products from a certain retailer.
The features of a prepaid card
A prepaid card is a card that is commonly used to make payments as it has a certain amount of money loaded or credited onto it. This type of card is not attached to a bank account like a credit or debit card, as the monetary amount loaded onto the card limits its usage. They do not provide an overdraft facility as the money available on the card is the maximum amount of funds that can be spent.
A number of prepaid cards allow individuals to reload money. This means that the card can be recharged with a certain amount of funds from the place that it was issued initially. This enables individuals to use their prepaid card for a longer period of time, as well as for a higher amount of money.
One of the main benefits for companies using a prepaid card is that it is cheaper and easier to use than a number of other payment solutions. Depending on the location of the company you owe money to, you may be charged a set fee or a percentage of the sum you wish to deposit into their account. By using a prepaid card and issuing it to the company you will save money.