A 101 on “Prepaid Cards”. This video covers, What is a Prepaid Card Different Types of Prepaid Cards Key Features of Prepaid Cards (Issuance, Load, Reload, Fees etc.)
hello, GREAT Video! I have 2 questions: 1) what do you mean by "Balance in Prepaid cards do not earn any interest"? 2) Can you shed some light around Prepaid cards IRF? thank you
Hello Gamal, 1) Amount stored in a Savings account typically accrues some interest, similarly Credit cards as well. Where as in Prepaid card, interest calculation is not performed 2) Interchange for Prepaid is similar to that of the Debit card products. Thanks
Do all companies that issue prepaid cards have an integration layer to banks? I'm trying to understand if it is possible to issue prepaid card without a bank account.
Hello Tshegofatso, Prepaid cards are of multiple types, Gift, Salary, Forex etc. and not all Prepaid cards needs to have a Bank backend. Mobile wallet is a classic case, where it can be backed by the hosting company. Also Prepaid card rules are not just governed by the schemes (Visa, MC etc.), you need to also keep in consideration the local country regulations as well. Many countries do NOT mandate a bank account. However there are stricter rules that would govern in terms of overall balance that can be maintained etc. Hope it clarifies. Thanks
Single Message System is where the Authorisation and Settlement data is included in the Authorisation message itself i.e. the cardholder's account can be debited immediately. Where as Dual Message System is where Authorisation is done real-time, but the transaction should be presented to Issuer end-of-day by Merchant only then the cardholder's account can be debited. blog.unibulmerchantservices.com/authorization-clearing-and-settlement-of-mastercard-transactions/
Hi Vivek, agree NCMC in India aims to do that, and there are few transit cards in Singapore & London which do that. However they are not in majority yet. I just took an example of common transit cards, which are typically closed-loop. Thanks
Your videos are Very informative
Very good introduction of prepaid cards👍
Nice Introduction. 👍
hello, GREAT Video! I have 2 questions:
1) what do you mean by "Balance in Prepaid cards do not earn any interest"?
2) Can you shed some light around Prepaid cards IRF?
thank you
Hello Gamal,
1) Amount stored in a Savings account typically accrues some interest, similarly Credit cards as well. Where as in Prepaid card, interest calculation is not performed
2) Interchange for Prepaid is similar to that of the Debit card products.
Thanks
Please informe that, axis bank prepaid card provide company with others bank...
I didn't understand your comment "Techno Solutions". Please elaborate.
Thanks
Do all companies that issue prepaid cards have an integration layer to banks? I'm trying to understand if it is possible to issue prepaid card without a bank account.
Hello Tshegofatso,
Prepaid cards are of multiple types, Gift, Salary, Forex etc. and not all Prepaid cards needs to have a Bank backend. Mobile wallet is a classic case, where it can be backed by the hosting company.
Also Prepaid card rules are not just governed by the schemes (Visa, MC etc.), you need to also keep in consideration the local country regulations as well. Many countries do NOT mandate a bank account. However there are stricter rules that would govern in terms of overall balance that can be maintained etc.
Hope it clarifies.
Thanks
What do you mean by a single message based system. Can anyone explain.
Single Message System is where the Authorisation and Settlement data is included in the Authorisation message itself i.e. the cardholder's account can be debited immediately.
Where as Dual Message System is where Authorisation is done real-time, but the transaction should be presented to Issuer end-of-day by Merchant only then the cardholder's account can be debited.
blog.unibulmerchantservices.com/authorization-clearing-and-settlement-of-mastercard-transactions/
Even transit cards too can be open loop which can be used in transit as well as retails
Hi Vivek, agree NCMC in India aims to do that, and there are few transit cards in Singapore & London which do that. However they are not in majority yet. I just took an example of common transit cards, which are typically closed-loop. Thanks
@@LearnPayments Yes you are right, only three projects in transit business in India which are using such cards. By the way nice explanation
Yes. You are right. Kochi Metro Axis Bank card is an example.