Credit cards have been shoppers’ preferred method of payment for decades. Their convenience and ease of use have made them an obvious choice for consumers, but for some, restrictions and limitations have been a barrier to being granted their own card.
Prepaid cards function like credit cards with a MasterCard or Visa logo, but have their balance set in advance by the holder via prepayment. They can be used in ATM’s, shops, restaurants, online, and over the phone. They have a number of benefits to the consumer, including:
Unlike credit cards, prepaid cards don’t require a credit check in order to be issued. This means consumers of all backgrounds and credit histories that are over 18 have the opportunity to carry a Visa or MasterCard without passing through rigorous screenings. Since the cards are prepaid (meaning there is no line of credit), the issuer is also not at risk for holders to default on payments.
Prepaid cards are a convenient option because, like standard credit cards, they can be used in most places around the world and online – anywhere Visa or MasterCard are accepted. This gives consumers the power to shop and pay with the easy swipe of a card, or to shop online without the need (or hassle) of leaving their home. When traveling, there is no need to perform currency exchanges from one country to the next.
Think of prepaid cards like cash with protection: once the balance on the card is set by applying cash to the card, the holder is protected from loss, theft, and fraudulent purchases. Should these charges appear, they can be reported to the issuing company for investigation and reimbursement.
Prepaid cards are used in the same way as credit cards, so there is no learning curve. In most cases, the balance can be adjusted by a simple transfer of funds from an account onto the card. The card can then be used anywhere credit cards are accepted – shops, websites, ATM’s, restaurants, and more – safely and easily.
Prepaid cards are a great way to set and adhere to budgetary guidelines. Because there is no line of credit – the balance is always associated with the money actually available for spending – there is no worry about going into debt. The holder could even choose to use the prepaid card as if it were a separate bank account: pay onto the card whatever they allot to spending or a project, to keep these charges separate from their overall savings and track this spending more easily. As there is no advance of money from the issuer, there is also no need to worry about incurred interest or payment due dates.
Information for Merchants
DPO partners with Payoneer to issue prepaid MasterCards to merchants. Payoneer is a leading global financial services company, with offices (and clients) all over the world. Payoneer facilitates cross-border payments quickly, easily, and securely.
With the Payoneer Prepaid MasterCard, the balance is automatically updated based upon funds available in the linked account, saving the effort of manual processes. The card can then be used anywhere MasterCard credit cards are accepted. It is also possible to receive cards in various currencies, so merchants with presence in different locations can have localised cards.
The online application process for a Payoneer prepaid card is fast and simple.
Prepaid cards are enabling more people to leverage the benefits of credit cards, but with more ease and control. They are a convenient, easy, secure alternative to cash and have become very popular around the globe.