What is a Prepaid Card
A prepaid card is a card issuer that is for profit. It is a prepaid voucher issued through a specific carrier and form that can purchase goods or services from a particular institution. According to whether the cardholder identity information is recorded, it is divided into prepaid cards and bearer prepaid cards, and by information carrier is divided into magnetic stripe cards and IC cards.
Prepaid cards do not have an overdraft feature. Prepaid cards are debt certificates issued by the issuing institution that may be used in the field of commercial services, as shown as shopping vouchers or consumer cards, reflecting the claims enjoyed by the holder of the card (vouchers) as a consumer to the issuer.
Benefits of prepaid cards.
One is increased security. The use of prepaid cards after the merchants do not hand cash, a large reduction in the flow of cash, not only to avoid the loss of counterfeit money, but also to reduce the risk of robbery and other dangerous.
The second is increased profits. Merchants pre-charge cash when using prepaid cards, and the amount of money in arrears is greatly reduced. The increase in funds that can be flexibly used is beneficial to businesses. At the same time, you can earn a lot of interest by taking advantage of the time difference. When consumers shop with prepaid cards, a reduction in the number on the card is not as painful as cash out, and a lower level of consumer restraint can lead to sales growth.
The third is to improve efficiency and reduce costs. With prepaid cards, cash receipts and accounts have been significantly reduced, both to increase efficiency and reduce the cost of labour and equipment.
The fourth is to be able to stabilize the source of customers. Once a consumer receives a prepaid card for cash in a system's store, they "disconnect" with the store of the other system for a certain period of time and become a stable customer of the system store.
The fifth is to improve the corporate image is conducive to long-term development. Convenience stores are difficult to compete with giant commercial buildings, through pre-claim cards can provide more convenient services, prepaid cards this technology product will give enterprises with advanced image, can strongly attract the younger generation of consumers, enhance competitiveness.
Consumers have their benefits, too.
There are also many benefits for consumers using prepaid cards, as shown in:
One is security. Bring a thin prepaid card without or without much cash to reduce the risk of theft and robbery.
The second is convenience. Shopping with prepaid cards is easy to carry, after shopping can display the balance, will not fall full pocket change, it is very convenient to use.
The third is easy to plan. Children with money do not give, give cash and fear of children spending, with prepaid cards, children pocket money can be used on budget, parents rest assured.
The fourth is to meet the demand of the new wave. Prepaid cards reflect a person's economic status and satisfy students or other young people in pursuit of fashion.
The fifth is that there is the value of the collection. Prepaid cards are beautifully designed and sold in limited or complete packages and are valuable collectibles.
Prepaid cards are certainly not perfect and there are drawbacks. We need to be rational about it.