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Prepaid Card: Meaning, Importance And How To Keep It Safe

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Prepaid Card
Photo Source: Access Bank Website

Prepaid Card is perhaps the most unpopular among Cards issued by Banks and Financial Institutions. Debit Cards and Credit Cards have dominated the world while this useful Card has been made a spectator to watch the scene/show from the stands.

Prepaid Cards are designed for special purposes and they have more features compared to other cards. In this article we’ll try and give you a complete overview of this type of Card and how to keep it safe.

What Is A Prepaid Card

A Prepaid Card is a type of Card issued by a Bank or Financial Institution that can be preloaded and reloaded with Cash. It simply means that you can send some amount of Money into this type of card for a later use.

By default, Prepaid Cards are empty i.e they are cashless. But you can can send or transfer money into Prepaid cards. A friend, family or business associate can transfer money into your Prepaid Card.

This means that Prepaid Cards can serve as a Savings Account, have the characteristics of a Credit Card and also be used as a Debit Card.

Money can be stored or saved in Prepaid Cards(Savings Account), Cash can also be sent into Prepaid Cards(Credit Card features) and It can be used to make withdrawals in ATM(Automated Teller Machines), POS Payment and even use to make purchase on the web/Internet.

Prepaid Cards are not necessary linked with or to a Bank account. Prepaid Cards serves as Bank Account itself. Due to the fact that its not always linked with a Bank Account, this type of card is usually empty until it is loaded with Cash.

Major Issuers Of Prepaid Cards

There are different financial institutions that issues Prepaid Cards across the globe. Most Prepaid cards can be used anywhere in the world but some can be use within a geographical region. Below are top Prepaid Cards issuers.

Importance Of Prepaid Cards(Why Use Prepaid Cards)

There are various use of Prepaid cards and we have a list of few important ones below

  • Quick Cash withdrawals
  • Easy to use
  • Access to cash almost anywhere
  • Online payment
  • Internet transaction is much easier with your Prepaid cards
  • Money transfer is much more faster and easy
  • Airtime Top Up and Bills payment.
  • Control over how to spend your money.
Benefits
  • Easy to get and use and no credit check is required to get the card.
  • Non –exposure  of unintended funds  & accounts
  • Load in any Bank or Issuer branches
  • Can be used to make purchases online, pay bills and access  cash at ATMs
  • Provides extra protection for Web based transactions with “Safetoken” One Time Password (OTP)
Benefits To Corporate Clients
Benefits To Schools/Professional Institutions
  • Co- banded with School logo for use as tuition payment card on school portal
  • Student Identification with picture, bio-data and school details (matric number , faculty, admission year etc) can be incorporated
  • Can be enabled for access control  with MI-fare chip embedded
  • Ideal as a staff card for identity, access and payment of incentive
  • Drive cashless payments of goods and services on campus
Major Threats Facing Prepaid card Users

Prepaid Card users are no exception to internet frauds and online threats. But it seems that there is little or nothing that fraudsters can do with empty Prepaid Cards.

  • Theft: Sometimes people target those with Prepaid cards and steal their card. With your bank link to your card this is a major problem as you might lose lots of money if not properly handled.
  • Keep the details of loading your prepaid cards very safe as this will render any stolen prepaid cards useless.
  • Carelessness: People are sometimes careless and this is not good. Your card is protected by a security PIN and once someone have access to this PIN and your Prepaid card there is no telling the number of damage he can do.
  • Internet: Using your Prepaid cards in any website you see is not such a good idea. Some websites save data of your Prepaid cards and that can be used against you.
  • Unprotected Prepaid Cards: The four most important parts of your Prepaid cards are, the Serial Number at the front(14-16 numbers), the Expiry Date of the Card(validity date), the Name of Card Holder and the CVV 3 digit behind the card(in some card it is 4 digit and its located at the front).

Now that you have seen that there are lots of threats facing users of Prepaid Cards, you might get scared. Well it’s okay to be scared but we also have some major tips to help you secure your cards.

How To Keep You Prepaid Card Secure
  • Keep your Prepaid cards safe.
  • Take it along anytime but only use it when it is necessary.
  • Always keep on the look out when its been used for POS payment.
  • Your Prepaid card serial Number, Expiry Date, Holders Name and CVC is very vital. Make sure no one person get all four details from your card.
  • The PIN associated with your Prepaid card should be kept confidential. Strictly to be used by you, close family members and trusted friends.
  • Report to your Bank or Financial institution the moment your card is stolen.
  • If you notice a suspicious activity in your Prepaid card contact your Bank or financial institution ASAP.
  • Ask your Bank or Financial Institution to block any card that you feel is expose to threats.
  • Never take a photo of the back and front of your Prepaid card and send to someone you met on the internet.

Mntrends can not possibly cover every area as it relates to Prepaid Card. But we hope this information of ours help you understand and stay safe as you make use of your Prepaid Cards. What is your experience using Prepaid Cards please feel free to use the comment section below and tell everyone about it. Please use the share button below to share our posts on Facebook and Twitter.

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