A prepaid credit card is a type of credit card that comes with preloaded funds for making transactions. Unlike a normal credit card that functions on a credit card limit issued by the bank, a prepaid card allows customers to make purchases using the funds that are pre-loaded into the card. The card can be used to make all the transactions which you can do with your regular credit card. The biggest advantage of a prepaid card is that customers can make purchases without incurring any debtf or paying huge interest as all the spends have to be within the limit of the available funds.
A prepaid card can be used just like a regular credit card for shopping, bill payment, and more, thus eliminating the need to carry excess cash
Some prepaid CC types can be used to make ATM cash withdrawals in case of any financial emergency
Cardholders need not worry about incurring debt or high interest on transactions as the purchase has to be made within the available funds
The approval process to get a prepaid credit card online is comparatively faster than that for a regular credit card as factors such as credit score or stable monthly income are not that important when considering the eligibility for this card type
A prepaid CC can also be given as a gift card to your family members or employees
In case employees don't own a bank account, employers can distribute their salary via a prepaid credit card online
The card is also ideal for travelling abroad as you can load up the currency and use it for transactions
Also referred to as open-system cards, these types of prepaid virtual credit cards are branded with the network that they’re affiliated to, namely Visa, MasterCard, or Amex. The respective card will carry the logo of the affiliate brand and is usually accepted across all merchant stores.
Unlike an open-looped prepaid card, the acceptance of a closed-loop credit card is restricted to the affiliated merchant outlets only. This means that you can buy goods and avail services only at that merchant’s outlets with this credit card type. Most gift cards are closed-loop cards.
These are hybrid prepaid cards with features of both open- and close-loop card types. A semi-open looped card is accepted by a variety of chains or merchant outlets that are affiliated with the card’s brand or carry stores of the respective brands.
Reloadable prepaid cards are those prepaid cards in which the cardholder can reload funds once the original fund limit is exhausted.
Non-reloadable gift cards are those prepaid cards wherein you cannot reload funds once the original fund limit is exhausted. Generally, gift cards fall under the non-reloadable prepaid card category.
SBI Prepaid Card |
State Bank Gift Card |
State Bank EZ Pay Card |
|
State Bank Foreign Travel Card |
|
State Bank Achiever Card |
|
Axis Bank |
Axis Meal Card |
Axis Bank Gift Card |
|
Axis Bank Smart Pay Card |
|
ICICI Bank |
ICICI Expression Gift Card |
ICICI Meal Card |
|
ICICI PayDirect Card |
|
ICICI Gift Card |
|
HDFC Bank |
Millennia Prepaid Card |
GiftPlus Card |
|
FoodPlus Prepaid Card |
|
Apollo Medical Benefit Card |
|
MoneyPlus Card |
|
Kotak Bank |
Kotak NETC FASTag Card |
Kotak Konnect |
|
Kotak Gift Card |
|
Kotak Netc@rd |
Prepaid Credit Card |
Debit Card |
Funds have to be preloaded in the credit card |
Funds are directly debited from the bank account |
You need not have a bank account to use a prepaid card |
Debit card requires a bank account associated with it |
Limit restricted to the remaining funds available after purchases |
Limit restricted to available funds present in the bank account |
You can easily reload a prepaid credit card online or with cash or cheque and use it for making transactions |
A debit card can be used for as long as you have funds in your bank account |
A prepaid card is a type of credit card in which funds are directly added to the card. The credit limit of a prepaid card is restricted to the amount of funds added to it. On the other hand, a regular credit works on credit borrowed from the bank or the financial institute issuing the card. However, a prepaid card can be used to make transactions just like a regular credit card.
No. Prepaid cards and debit cards are two different card types. While a debit card directly debits the money from your account, for using the prepaid CC, the funds need to be pre-loaded in the card.
Prepaid cards offer benefits like ease of transaction, eliminating the need to carry cash, easy payment of monthly bills, and better expense management, among other things.
Applying for a prepaid credit card online is a good idea if you do not have a bank account or want to give gift cards to your employees or family members. The card does not affect your credit score and since the limit is restricted to the available funds loaded into the card, you need not worry about incurring heavy interest or debt on your transactions.