What is a bank prepaid card
It is a debit card that is preloaded or pre funded with cash prior to its use, it can be used just like a regular debit card but it is not linked directly to your regular bank account, it has its own account number away from the your bank savings or current account,
The card account can be loaded or funded over the counter in banks, online via internet banking or through transfer via mobile banking or USSD banking and the funds in the card can only be used via card channels i.e. Online, on ATM or on POS, the fund in the card cannot be withdrawn over the counter in banks.
Here are reason why you need a prepaid card along with your debit or credit card.
1. Security and control
A prepaid card gives you the much security any pin and chips card will give you with additional security and control over your funds. It can be loaded on-the-go to the limit of the amount needed per time for online or web transactions and usage on all payment channels without exposing all your bank account balances on the web and other payment channels. You will only need to transfer the amount needed per time to your card account before it is used for transactions and load it when there is another need to use it..
Getting a card account from your bank in addition to your regular debit or credit card gives you the convenience of alternatives. Your prepaid card allows you the alternative in the event that your other bank card linked to your regular bank account won’t work because of network connectivity issues. It is most efficient and convenient because it never affected by your bank’s network connections.
3. Faster processing
Getting a prepaid card from a bank either as a customer or not is so easy. Only minimal KYC documentation is required. As a bank customer, you only need to complete a card request form while a non bank customer will provide their BVN and fill a mandate form along with the request form and thecard is produced in less than 24 hours. No address verifications, no utility bills and no other documentation required.
4. Customize or co-branding option
The beauty of a prepaid card is that it can be co branded with organizations who intend to produce the card enmass for their temporary or permanent staff. Thus a construction, marketing or other companies with large number of ad hoc staff in compliance with the cashless policy of the government will only need to request their bank to produce and co brand prepaid cards for their ad hoc and other staff and have their salaries paid into the card accounts and they can access their payment via alternative banking channels.
Read also: Nigerian banks’ USSD codes