What Type of Prepaid Cards Are Available

Prepaid cards are turning into a more and more popular forms of payment across the world. Still, many people have no idea about the variety of options they have. While prepaid cards have some similarities with standard debit or credit payment cards, there are also some unique features that make them stand out from the crowd. In this post, you will get familiar with the types of prepaid cards and their practical specificity.

The Variety of Prepaid Cards to Choose from

These days, there are more than enough stored-value cards in the banking sector that make it easier for you to proceed with payments. Here are two major categories of cards:

  • The non-reloadable card is limited to a specific sum of money that is considered to be the card's nominal value. In the United States and Canada, prepaid cards can be purchased in stores as virtual gift cards so that you can buy them without mentioning any personal details.
  • The reloadable card is connected to an account, although it remains anonymous. This form of prepaid card is considered to be zero-balance because its holder can reload the account on his or her own whenever it is needed.

The major aspect that makes virtual prepaid cards and plastic ones different is that the last ones are not available physically. In other words, they operate as pure data that can be used during a financial transaction. All online systems address them as standard debit forms. If you make up your mind to use a virtual prepaid card, you must be the resident of the country where it is issued. You will need to confirm your identity and state your physical address.

Features of Virtual Prepaid Cards

Prepaid cards involve particular features deriving from their basic characteristics:

  • They are to be activated. When you receive the card, it happens to be in non-operating status. Usually, they must be activated at retail places by the seller. Alternatively, you can active it yourself by contacting the bank customer support.
  • They are to be registered. A prepaid card needs to be verified. Thanks to the AVS (Address Verification System) mechanism, the holder's name and billing address should be stated correctly.
  • They are marked with a particular value and expiry date. Stored-value cards are subject to strict regulations in term of their expiry date. The period of their validity is usually limited to just one year.

Closing Note

Virtual prepaid cards happen to be the best solution for safe financial transactions, especially when you need a prepaid card for a short period of time. The benefit of anonymity can hardly be ignored, especially when you want to keep your identity secret.