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What are the Types of Prepaid Cards?

Lan Bell Lan Bell , 8/29/2018
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Prepaid cards are one of the most popular things for this generation. They are becoming popular with each passing day. Prepaid cards are convenient to use. You just load your card with the money that is available and spend it in a safer and more secure way.



Prepaid cards let you make your purchases without necessarily having to carry cash. This is because, with prepaid debit cards, you can make purchases online, pay for the good and get it delivered to you, pay your bills etc. These benefits has made it more popular because, in this day and age, nobody wants to carry cash around because of the obvious reasons.

Before you apply for a prepaid card, there’re some types of prepaid cards that you should know before you chose which one matches your needs. They include; open-loop prepaid card, Closed-loop prepaid card, single-use prepaid card, reloadable prepaid card, government card, and payroll card.

Below is in-depth information of the types of prepaid cards as listed by https://www.prepaidcards123.com/

1.       Open-Loop Prepaid Cards

This is a card with a network logo on it. These cards can be used at any location that accepts the brand. Most prepaid cards have a logo on them

Examples of the network include Visa, MasterCard, American Express, and discover.

2.       A Closed-Loop Prepaid cards

A closed-Looped prepaid card is a card you can only use at a certain location. For example, a closed-loop card might be good only at a specific store or a group of stores, or on your public transport system.

Most of the closed-loop cards do not have the network logo on them.

3.       Single-Use Prepaid Cards

The single-use prepaid card is almost similar to the closed-loop prepaid cards. It’s available in a pre-set amount, and when the balance on the card has been spent, the card can be disposed of.

The user information is not collected for single-use prepaid cards, which makes them very quick and convenient. This does not mean that in case the card is lost or stolen, the funds cannot be recovered.

4.       Reloadable Prepaid Debit Cards

As long as you top up the card, reloaded prepaid card can be used as long and as frequently needed. These cards are sometimes referred to as General Purpose Reloadable [GPR] Cards. Some of these cards offer extended product features like mobile expense management, to deliver enhanced value and flexibility.

In most cases, you can you can save a funding source to your reloadable prepaid card account, this allows you to top up the card balances when the need arises. In this cases, it’s good to check the security processes of the card carefully to ensure that your money is kept safe and secure.

5.       A government Benefit Prepaid Card

The government benefit prepaid card is also a prepaid card used by the government agency to pay certain government benefits such as unemployment insurance.

 

6.       A Payroll Prepaid Card

A payroll card is a prepaid card that you get from your employer that you receive your paycheck on.