Here’s How Millennials Feel About Prepaid Cards

This might not be common knowledge but millennials now make up a massive part of today’s modern workforce. Another surprising fact about millennials? They love and are using the best prepaid cards they can get their hands on!

If you are a millennial, you can probably attest that the best prepaid cards have become quite popular. In the United States alone, a staggering 29 million millennials already have their salaries loaded onto their prepaid cards.

A B&C study explored the use of the best prepaid cards among millennials. The result of the study provided a lot of insight into the relationship between millennials and their prepaid cards. 

Some of the insights include their views on prepaid cards and the benefits they offer, how and why they opt to use prepaid cards, their overall satisfaction with prepaid cards, and many others.

Overall, the survey revealed that regardless of how and where millennials use their prepaid cards, they are quite satisfied with it. As expected, they also have a positive and favorable experience when it comes to using their prepaid cards for purchases as well as other transactions.

Below are some of the interesting revelations from the survey conducted on millennials and their relationship with their prepaid cards:

Overall Prepaid Card Satisfaction

  • A whopping 83 percent of respondents say they are happy and satisfied when it comes to using their prepaid cards
  • Another 23 percent of prepaid card users say prepaid cards met their expectations and they were not disappointed at all
  • Over 60 percent of the survey participants revealed say that their prepaid card is more useful than they first thought

Prepaid Card Fees

  • At least 33 percent of the millennials that participated in the survey revealed they prefer their prepaid cards over other options like their checking accounts as they won’t have to deal with overdraft fees and other monthly charges
  • At least 20 percent of the survey respondents don’t have checking accounts and were quite worried about needing to maintain a minimum balance when using their prepaid cards

Credit Cards versus Prepaid Cards

  • Of the 64 percent respondents that don’t have credit cards, most chose not to get one by choice and not because they are not qualified to get one
  • Forty-seven percent of the survey respondents opted not to get a prepaid card so they can avoid spending more money than they can afford or would like to
  • Another 42 percent of the respondents say they didn’t get a prepaid card so they can avoid debt

Prepaid Card Usage

  • At least 98 percent of the survey participants revealed that they use their prepaid cards to make purchases
  • Majority of the survey participants use ATM and cash back at the point-of-sale access from their prepaid cards
  • Seventy three percent of the participants use their prepaid cards to withdraw money from automated teller machines (ATMs)
  • A staggering 73 percent of the survey participants revealed they get cash back at the register.
  • Close to 50 percent of the survey participants revealed that they use their prepaid cards to withdraw money from ATMs at least 3 times (or more) monthly

What Makes Prepaid Cards Different

Thanks to their peerless benefits and features as well as the amazing ease and convenience they offer, prepaid cards have become massively popular. In fact, nowadays, businesses, regardless of size are now using reloadable prepaid cards because of the enticing and peerless benefits they offer.

Years prior, credit and debit cards have been the plastic card of choice for many people, even for entrepreneurs. Nowadays, reloadable prepaid cards have given credit and debit cards a run for their money by offering benefits and features that are truly hard to resist.

While reloadable prepaid cards have things in common with other plastic cards, there are certain features that make them stand out. If you are considering using reloadable prepaid cards, below are some of the features that make them stand out:

Reloadable prepaid cards are easy to obtain

While other plastic cards like credit and debit cards offer a lot of amazing benefits and features, they are quite difficult to obtain for some people. For starters, most people have to go through stressful financial and background checks when applying for one. If you have made a few financial blunders in the past, it can get in the way of you obtaining one.

Fortunately, reloadable prepaid cards are very easy to obtain. You won’t have to go through those time consuming credit and background checks just to get approved. Also, any financial mistakes in the past will not hinder you from getting your hands on a reloadable prepaid card and enjoying all the benefits it offers.

If anything, getting a reloadable prepaid card is easy, straightforward, and quick. And since reloadable prepaid cards are not associated with any banks, you won’t have to pay for any exorbitant fees, interests, and other charges.

Reloadable prepaid card users allows you to send your own spending limits

Many people who use credit cards know there is a set spending limit for the card. In other words, the issuer or the bank will be the one to set a maximum amount the cardholder can consume. Unfortunately, this limit can be inconvenient when you want to use the card on something that’s worth more than the balance available on the card. 

Fortunately, with a prepaid card, you are spared from this hassle. Since you get to decide how much you will load on your card, you get to spend your own spending limits in a way.

Holders of reloadable prepaid cards also have the option to load the exact amount they want to load and at any time they deem convenient. The freedom to set your own limit is also very beneficial as you can load money daily, weekly, or monthly, depending on what you deem fit.

Reloadable prepaid cards are accepted by many merchants

Users of reloadable prepaid cards can be very helpful when you want to make payments for various transactions regardless if it’s local or international. In addition, using a prepaid card can also be used to make purchases easy as users have the option whatever it is that they need when using their card.

The wonderful thing is most prepaid cards are accepted by international networks and payment portals. Nowadays, having the option to conveniently perform payment and purchase transactions cannot be overemphasized.

With the world becoming increasingly tech-savvy, the ability to have a tool that can be used for purchase transactions through merchants and online stores is a breath of fresh air. 

After all, the convenience of not carrying cash with you wherever you go and doing purchase transactions online and through merchants can offer comfort and ease that’s just hard to match.

5 Smart Reasons to Get Yourself a Prepaid Card

More and more consumers the world over are resorting to prepaid cards for payments. Taking into accounts all the amazing benefits it offers, the popularity of the best prepaid cards is not really surprising.

In a lot of ways, prepaid cards work pretty much like the typical credit or debit cards. More or less they have many of the amazing features of other plastic cards minus the drawbacks.

If you are considering getting a prepaid card, below are some of the smart reasons to get the best prepaid cards.

1. It allows you to earn rewards

Some prepaid card issuers entice people to get a card by offering rewards. Just like many credit cards, some prepaid card issuers deliver loyalty rewards that allow them to earn points that can be converted to cash.

Some of the activities that merits reward points include incentives, rebates, and purchases. Distributors, customers, and employees also have the option to accumulate and redeem rewards as they see fit.

Studies show that flexible reward programs provide better customer satisfaction as they allow cardholders to purchase exactly whatever it is that they want.

2. It gives you protection

Peace of mind if important when it comes to finances. When using a prepaid card, your funds are protected so you have peace of mind knowing your money is protected. Also, since there’s no bank or credit account information that are at risk, there is enhanced security, real-time monitoring, and instant reporting.

Prepaid card is also safer to use compared to debit or credit cards so it decreases the risk of theft, loss, or fraud. In the event that you become a victim of a fraud attack, you only lose risking the balance that’s available on the card and nothing else as it is not connected to your savings or checking account.

3. Obtaining one is easy and straightforward

Poor credit, no credit, or spotty history? It won’t hinder you from obtaining a prepaid card! Meeting the requirement for a bank account or credit card can be both time-consuming and stressful. 

In most instances, your financial history and background will be looked into. If you have committed some financial mistakes in the past, your chances of getting approved is zero to none.

4. You can reload funds whenever convenient

An open-loop reloadable card is reloadable. Reloadable cards can be topped continuously with additional funds at any time you deem fit. It is a great option if you are looking for a financial tool you can use to pay for bills, make purchases, and handle your day-to-day transactions.

When it comes to loading money onto the card, several options are available. You also have the option to load money onto your prepaid card through a secure online portal. As soon as the amount has been loaded, you can immediately use the card for purchase transactions and ATM withdrawals.

5. It is a great money management tool

Many people turn to prepaid cards to cut down on cost, eliminate debts, and curb overspending. Money management can be challenging at times. Fortunately, a prepaid card can be a really powerful tool that can help you manage your money and can help ensure that you are able to stay on top of your spending.

Also, you can never overspend when using a prepaid card since your spending will be limited by the balance that’s available on the card. Once the balance has been depleted, your spending also stops automatically until such time that you load money onto your prepaid card again.

Prepaid Cards: Are They Right for You?

While they are considered the latest addition to the plastic card family, reloadable prepaid cards have already earned their place in the hearts and wallets of countless people. The popularity of reloadable prepaid cards however is no coincidence. 

For starters, reloadable prepaid cards make it effortless to control spending and avoid debts. Make no mistake about it, reloadable prepaid cards share a few similarities with credit and debit cards. One of the most distinct differences is it is not attached to any banks.

Are Prepaid Cards Right for You?

Conventional plastic cards like credit and debit cards carry with it a few risks many users would rather steer clear of. For instance, transactions using credit or debit cards often come with really costly fees and other charges. That’s not even counting the high interest rate you are expected to pay monthly.

If you are trying to curb overspending, there is no doubt prepaid cards are your best option. With prepaid cards managing your spending is a walk in the park. You won’t have to wonder every now and then how much your remaining balance in the account is or if you are already spending more than you should or allowed to.

With a prepaid card, you can load a specific amount on the card (daily, weekly, monthly, annually—whatever works for you) and use it for whatever purpose you intend to use it for. If you deplete all the available balance in the card, you have the option not to load money onto it again until you want to.

The great thing is loading money onto your reloadable prepaid card is very easy and straightforward. For starters, you can easily load money onto your card through secure online portals. Once the money has been loaded successfully, you can use your card right away for purchase transactions and ATM withdrawals.

The Peerless Benefits of Reloadable Prepaid Cards

They are easy to obtain

Unlike credit or debit cards where you have to submit countless financial documents and go through a stressful application process, obtaining a reloadable prepaid card is the exact opposite. You won’t have to submit any financial documents and you won’t have to go through those background checks.

Even financial mistakes you have made in the past won’t get in your way when it comes to obtaining reloadable prepaid cards. When applying prepaid cards, your financial blunders in the past will be taken into account and might even cost you your approval.

They are easy to use

If you have used credit or debit cards before, you’ll be able to use reloadable prepaid cards with ease. There’s not much to learn, really. You use them pretty much like all the other plastic cards. That means, you swipe them at merchant stores and enter the account number when doing online purchase transactions.

You can also use your reloadable prepaid cards for ATM withdrawals. You use it just like you would any other ATM cards. Once the balance on the card has been depleted, you won’t be able to use it for the time being. That means all the transactions you will do will be declined. You can however use it again once you have loaded money on the card.

They can also be used outside the country

If you love travelling outside the country on a routine basis, you will surely love reloadable prepaid cards. You can also take them with you outside the country and use it just like you would any other plastic cards. Fortunately, it is often accepted in merchant stores and can also be used for ATM withdrawals.

Prepaid Card for Business: How to Use it to Manage Employee Travel Expenses

According to a study conducted by the GBTA, business travel spending has grown by 7.1 percent in 2018 and can reach a total of $1.7 trillion by 2022. This shows that a major part of the firm’s funds are invested in travel expenses. That said, it is important to  always stay on top of your travel and expenses expenditure. 

Fortunately, this is where a prepaid card for business can come in handy. A prepaid card for business can help you manage your travel and expenses effectively. Two of the most common challenges of handling travel expenses are minimal control over employee spending and difficulty identifying fraudulent charges.

One of the foolproof ways to take control of the situation is to equip employees with a prepaid card for business. Prepaid cards can be preloaded with a set of funds and can be used by employees to make purchases. Prepaid cards can also be used for point-of-sale payments, online payments, and ATM withdrawals.

It is also easier for you to control overspending at the source to prevent non-compliant transactions. Prepaid cards can also be used to limit spending. Other ways prepaid cards can be used to manage travel expenses include:

They can be used to increase control over expenses

Firms that do not use prepaid cards either provide employees with credit cards or expect them to use their own personal credit cards to cover their travel expenses. Unfortunately, company credit cards often have high credit limits and often end up being misused by employees.

However, if employees use their personal credit cards to cover their own expenses and will just have things reimbursed. By requiring them to always submit receipts, you will be adding to their burden. Some employees may not have credit cards and if they do, their credit limits might not be enough to cover the expenses of their international trip.

Using prepaid cards can also help you save costs significantly since they won’t allow overdrafts and you can set fund limits using the cards. Limits can be set on daily, weekly, monthly, or yearly depending on the limit set for different employees.

When you use a prepaid card, employees won’t have to spend their own money and you will be relieving them of massive burden. It also becomes easier for your finance team to track expenses in real time while employees are still on business trips. This can give you great control over the spending of your employees.

They can help minimize the company’s dependency of cash

Travel programs that involve cheques and cash tend to be slow and inefficient. For employees, carrying large amounts of cash in one go can be risky. Losing cash while on a trip can also mean losing funds for the entire trip. If outside the country, it can be difficult to replace them or get access to money while overseas.

Fortunately, prepaid cards can be a smart alternative to cheques, cash, and receipts as they are safe, flexible, and can reduce one’s dependency on cash without needing to spend time coordinating with banks. Using a prepaid card can also spare your employees from all the trouble of using receipts.

Prepaid cards also offer a certain level of protection against loss. If an employee loses their card, they can have it restored easily or they can ask to be issued a new card. When you incorporate prepaid cards in your travel system, you can provide funds to your employees instantly.

High Impact Use Cases of Prepaid Cards

By year 2022, the size of the prepaid card market will exceed $3.653 trillion. This incredible growth is vastly increasing interest for those in the unbanked populations. Moreover, individuals with bad credit ratings or those who are not qualified to get a bank account now choose to use the best prepaid cards they can find instead.

However, that is not all. Over the years, governments and businesses have also created unique prepaid card offers aside from the ones individual customers enjoy. They target customers either directly or through partnerships with third party payment processors. 

With continued technological innovations, the services availed through the best prepaid cards can become limitless.

Prepaid Cards: High Impact Uses

For Consumers

Consumers use prepaid cards for various reasons. Oftentimes, it involves the purchase of commodities. The card does not only offer utmost convenience, it also helps them stay within the budget and not overspend.

General Purpose Reloadable Cards

This is considered the most basic of all the prepaid cards available. These cards carry the logo of major credit establishments. They can be loaded with a specific amount of money (minimum and maximum limits apply) and can be used to buy groceries, pay for bills, etc. They can also act as a multipurpose payment and budgeting tool.

Prepaid Travel Cards

Prepaid travel cards are great tools for those who want to budget their money when they travel outside the country. The card can be loaded with the home currency before leaving the country and is accepted at merchants or businesses that also recognize the payment service used. The cards frees travellers from the hassles and risks of carrying cash and travelers checks with them anywhere they go.

Prepaid Gift Cards

Hands down, the most marketed of all the prepaid cards is the gift card. Some of the biggest companies in the world (Amazon, Apple, Google, and Netflix) offer gift cards to customers. The cards can be used to purchase applications, games, and memberships. It can also be used to avail of premium offers and get discounts.

For Businesses

Many businesses are not using prepaid cards to make things easy for their employees. This allows employees access to services that were unavailable to them previously. 

Prepaid Payroll Cards

Payroll cards make it possible to transfer salaries to unbanked employees. They can also be used to pay bills, purchase goods, and withdraw money from ATMs. The cards are also considered a favorite by employers and employees alike as they can make the processing of salaries to unbanked employees seamless, quick, and fast.

Prepaid Expense Cards

Prepaid expense cards are designed to  allow clients, contractors, and employees to purchase office supplies, avail of consulting services, and go through trip expenses using only one card. There are also health savings account cards that offer several expenses that can be paid through the card once used. 

Prepaid Card Trends to Look Out For

Top-Up Options: Banks are now allowing multiple ways to add money to prepaid cards. Customers can also now use ATMs at various stores to load money onto their prepaid cards.

Increasing Card Usage: To improve their card activation rates, some providers reward cardholders who keep their cards loaded on a routine basis. Some also waive the annual fees.

Account Management: Some online account management allows cardholders to transfer money from one account to another. It is also likely for prepaid cards to be linked to mobile contactless payments. This can make account management a lot easier.

Card Management Solution: As prepaid cardholders are demanding smarter and safer alternatives to carrying cash, many have turned to prepaid cards. Taking into account all the amazing benefits prepaid cards offer, it’s no surprise it becomes a staple in everyone’s wallet in the near future.

Today’s Reloadable Prepaid Cards: How They Evolved

prepaid cards in Singapore

Nowadays, it has become almost impossible to go about your financial transactions without using some sort of plastic card. Case in point, many people now make car reservations, car rentals, or do purchase transactions using their credit, debit, or reloadable prepaid cards.

So how did people become highly dependent on beneficial financial tools like debit, credit, or reloadable prepaid cards? The answer can be seen when we examine the evolution of the mighty reloadable prepaid cards.

The Plastic Card Evolution

To have a clear understanding of how today’s reloadable prepaid cards evolved, let us go back to where things first started.

Credit Cards

The evolution of credit cards came naturally. During the American West, pioneers charged items they purchased using cash as they had money. The sharecroppers on the other hand depended on the credit given out by landowners. Landowners also provided food and supplies to the sharecroppers and they paid back using a percentage of the crops they harvested.

Later on, stores defined credit limits, with others introducing the 90-day credit discounts. In a similar setup, customers can charge purchases, take the merchandise home with them, and pay for their purchase over a 3-month period without interest. While this setup was initially store-based, they evolved to today’s credit cards.

In essence, credit cards represent borrowed money. It is also agreed that the user can buy on credit and pay for the purchase at a later date. The first ever widely accepted credit card was the Diners Club. It was introduced in 1950. In 1959, Bank of America introduced their first “revolving” charge card known as the Bank Americard.

As the credit card system evolved, computer technology also evolved significantly. This helped further revolutionise banking. In the mid-1980s, ATMs (automated teller machines) enabled access to cash and account information 24/7.

Debit Cards

In 1984, banks introduced a new financial tool known as the debit cards. Unlike credit cards, debit cards are linked to the cardholder’s bank account. When used for purchase transactions, payment is directly withdrawn from the cardholder’s bank account. Thanks to the convenience they offer, debit cards soon became a preferred replacement for checks and cash. By 1998, more people used debit cards than checks.

Prepaid Cards

Recently, another beneficial plastic card was introduced: the amazing reloadable prepaid card. The reception reloadable prepaid cards received has been nothing less than warm and impressive. In fact, a Federal Reserve Payments Study conducted in 2010 revealed that prepaid cardholders conducted a staggering 6 billion transactions amounting to $140 million. And this figure is in 2009 alone!

Need further proof of the reloadable prepaid card’s popularity? From 2006 to 2009, usage of reloadable prepaid cards increased by as much as 20 percent. As if not enough, the value of said transactions also increased by as much as 22.9 annually. At first, transactions using reloadable prepaid cards comprise just a small portion of the total non cash payments.

However, that changed relatively over the years and reloadable prepaid cards became the fastest growing option among the plastic cards. This trend was first noticed in the late 1980s when prepaid phone cards were first introduced. This was then followed in the middle of the 90s with the introduction of the merchant specific or closed-system gift cards.

Open-system cards on the other hand were first introduced in the early 1990s. This was when the US government introduced the Electronic Benefits Transfer (EBT) cards as replacement for the paper-based food stamps. Open-system gift cards were also first introduced to the public in the mid-1990s.

How to Pick the Best Prepaid Cards: Things You Should Consider

prepaid cards in Singapore

Over the years, one plastic card has experienced a tremendous growth explosion—the amazing prepaid cards! In fact, a Pew survey revealed that prepaid card usage has surged by as much as 50 percent. And that’s between 2012 and 2014 alone!

If anything, the best prepaid cards have evolved dramatically since they were first introduced. Nowadays, prepaid cards are considered one of the most trusted and convenient methods of payment. This is especially true among those who don’t have access to banks. 

In addition, the best prepaid cards have now been considered by many millennials as the consummate alternative to the conventional bank account. If you’re considering getting a prepaid card but unsure how to pick the best one that will suit all your needs, this article can help!

However, let’s get into the basics first.

What are prepaid cards, really?

If you’re not familiar with their distinction, it’s easy to mistake prepaid cards for the typical credit or debit card. For starters, they share a lot of surface similarities. What sets the best prepaid cards apart from credit or debit cards is they are not connected to any bank account.

Also, unlike credit cards, you get to decide how much money you’ll load into the account. Why is this important? It puts you in total control of your spending! That means when you use your card to pay for purchases, you will be using your own money rather than “borrowing” money from the bank.

If you need help sticking to the budget you’ve set or curbing overspending, a prepaid card is your ultimate ally! Since you won’t be able to use the card without loading money onto it first, you get total control when it comes to the amount you’ll load and spend. That’s a truly helpful feature especially for those who have difficulty controlling their spending.

How can you use your prepaid cards?

Offering unbelievable and peerless ease and convenience, prepaid cards can be used for both merchant and online purchases. More often than not, prepaid cards are affiliated with seasoned payment networks. That means they are also accepted and honoured in places their payment network is associated with.

Each and every time you use your prepaid card, the total amount of your purchase (regardless if it’s through merchants or online), will be deducted directly (and immediately) from the balance that’s available on your card.

In addition, it is also crucial to remember that the amount you can spend will be based on the balance that’s available on the card. In other words, you can easily control spending by limiting your purchases and other transactions on the balance available. If the balance you have in your card is not sufficient to cover your intended transaction, your transaction will be declined.

This might not be common knowledge but prepaid cards can also be used for ATM withdrawals aside from purchase transactions. If you’re going to use your prepaid card for withdrawals, you’re going to need a PIN (personal identification number) to successfully carry out the transaction.

How do you pick the prepaid card that’s best suited for you?

When looking for the ideal prepaid card, it is crucial that you first determine how you are going to use it. Case in point: how do you intend to load your prepaid card? It is going to be through reload networks or direct deposits? If you prefer the former, then it would be wise to opt for a prepaid card with a reload network you can conveniently go to.

Another key aspect to look into is the charges and fees. In line with this, you also need to figure out how you intend to use the card. Of course, it would be wise to opt for a card that charges the most minimal fees available. In addition, ensure that the card you’ll choose charges less especially for transactions you often do.

Prepaid Cards: Can They Help You Build Credit?

prepaid cards in Singapore

Prepaid cards are the newest addition to the plastic card family. Just like its other counterparts, prepaid cards provide benefits that are truly hard to miss. In fact, for many, prepaid cards have become the consummate alternative to carrying huge wads of cash.

While prepaid cards look just like credit or debit cards, they have one thing that sets them apart from the rest—they are not connected to any bank accounts. As the name implies, money has to be loaded onto the card first before it can be used for any purchase transactions or ATM withdrawals.

Since prepaid cards are not linked to any bank account, you can’t run up debts on them. In other words, your spending and withdrawals will be limited by the balance available in the card. As soon as the balance has been depleted, the spending stops automatically.

For those who love shopping online, prepaid cards can be a truly wonderful alternative to credit or debit cards. Since your prepaid card has no credit capacity, in the event that it is compromised, fraudsters will be limited to the balance available on the card and will not have access to your bank accounts. If anything, that’s a security feature many people just can’t resist.

Over the years, prepaid cards have become quite popular and have shown no signs of slowing down. However, not many people are truly aware of what their prepaid cards are capable of and how they maximise its use. Below are some of the prepaid card basics you need to know.

Can prepaid cards help me build credit?

As mentioned earlier, prepaid cards are not in any way connected to bank accounts. More importantly, when you use your prepaid cards, you are not borrowing or repaying money. That being said, using your prepaid card won’t be able to help users build credit.

In essence, to build credit, you need to borrow money and repay it back. The creditor will then report your payment record to credit reporting agencies. With prepaid cards, you will be using money that’s available on the card. In other words, all your transactions (purchases and withdrawals) will be deducted upfront from your card’s balance.

Is it easy to obtain prepaid cards?

One of the many things people love about prepaid cards is they are very easy to obtain. Why? Unlike credit cards, prepaid cards don’t come with any credit capabilities. In other words, they pose no financial risk whatsoever to the issuer.

Those who want to obtain prepaid cards won’t have to submit any financial documents or any personal and confidential information. In addition, you won’t also be subjected to any stressful and time-consuming background checks. In essence, obtaining a prepaid card is basically effortless!

Where can I use my prepaid card?

Typically, network-branded prepaid cards also carry the logo of the financial institution they are associated with. That said, it is often accepted and honoured at any merchants, establishments, and ATMs where the financial institution it is associated with is honoured. In addition, prepaid cards are also honoured by most merchants and sellers online.

For many, the ability to do purchase transactions online cannot be overstated. If anything, it will save you a significant amount of time, effort, and even money. That means you won’t need to get dressed, spend money on gas for your vehicle, brave the traffic, and deal with grumpy sales clerks and fellow shoppers.

However, more than anything, it’s the peerless ease and convenience of online shopping that makes it endearing to most people. Come to think of it, all you need to do is visit the website you want to purchase from, pay with your prepaid card, and just wait for your purchase to be delivered to your doorsteps. Now that’s ease and convenience you can’t find anywhere else!