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Prepaid Cards

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Pre-paid card gives you strength

Prepaid cards work on the theme of pay now and use at your convenience, very similar to prepaid mobile phone cards. All you have to do is buy a card, load it with the desired amount and the card is ready to be used. You do not require any account to use these cards. Prepaid cards are convenient alternatives to cash and cheques and benefit cardholders in a number of ways. Cardholders can use prepaid cards to pay the different merchants payments and e-Commerce transaction.

eZ-pay cards can also be used for withdrawing cash at ATMs. Cardholders can make purchases or get cash when they require it, rather than carrying big amount in cash. Access to funds on a prepaid card is protected by a PIN at ATMs and cardholder’s signature and at merchant locations. A prepaid card can be changed on request if it is lost or stolen. Itemized statements and online reporting can make tracking of expenses and also card activity conveniently. It is easier than cash or cheques.

At a Glance:

  • What is a prepaid card
  • Types of pre-paid cards
  • Difference between a debit card and a prepaid debit card
  • Features of pre-paid cards
  • Benefits of pre-paid cards
  • Eligibility
  • How to apply or purchase prepaid card
  • Fees and Charges
  • List of Banks are offering pre-paid cards
  • How to choose your prepaid card
  • Security of prepaid card
  • Flexibility of prepaid card
  • Universal acceptance
  • Important things that you should know
  • Maximum limit available with a prepaid card
  • Steps to be taken if prepaid card is lost
  • How to prevent this card from getting lost

What Is A Prepaid Card

A prepaid card is a payment card that is loaded with money by you or someone else.

A prepaid card looks like any usual credit or debit card, with a card number, signature strip and company branding. But prepaid cards are unlike credit cards, which give you with a line of credit. They are also very diverse from debit cards that are linked to a bank account with an overdraft facility. You can't borrow money with a prepaid card - you can only spend the money you have loaded onto it.

Types Of Prepaid Cards

  • Open Looped Cards

These are known as open system cards or network branded prepaid cards. These are issued by banks and carry logos of the issuer for example, Visa, American Express, etc. These are accepted and processed at any location which is approved by the banks.

  • Closed loop cards

In this type of cards the acceptance is specific to the location and mostly issued by the merchants for purchase of goods or service at their store. Gift cards are such cards.

  • Semi Open Looped Cards

These cards are also known as hybrid cars. These cards are accepted by wider collection of merchants. Examples of such cards are the ones issued by shopping malls or retail chains at different locations.

In Indian market prepaid cards are achieving popularity fast and many banks are giving these cards and also making them popular. Axis Bank came with big collection of prepaid cards. The Axis Bank Smart Pay, for instance is a rupee denominated card to disburse the salaries of your employees.

Difference Between A Debit Card And A Prepaid Debit Card

Even though it is called a debit card, a prepaid debit card is quite different from a bank account debit card. A bank account debit card is connected to the checking account a prepaid debit card is not. Instead you pay in advance to load funds on a prepaid card and then use the money.

In most of the cases it is not possible to spend more money than you have actually loaded on your prepaid debit card but with bank account debit card if you choose for the bank’s overdraft service the bank may cover the cost of the purchase that exceeds what you have in your account and also charge you a fee. Besides this prepaid debit cards may carry fewer consumer protections in the event of loss or a doubtful charge than debit cards.

Features Of Pre-Paid Cards

  • Safety – Store your money safely on the Prepaid Card
  • Accessibility – Access your funds stored on the card from anywhere anytime
  • Convenience – Gives you an easy way to bring cash
  • Card can reloaded any number of time from ItzCash World Outlet
  • No bank account needed
  • Accepted at all Visa/MasterCard network ATM, online and merchant outlets

Benefits of pre-paid cards

  • These cards can be used to buy goods and services without any cash transactions
  • The prepaid cards can be used to withdraw cash from ATMs
  • It helps you planning your expenditure and spends according to your budget. You can control heavy expenditure.
  • The reloadable card allows you adding excess funds as and when needed
  • Even individuals with bad credit are eligible for the prepaid cards
  • Using prepaid card is simple and it is readily available in the market
  • These cards can be used for the different purposes like payment of due bills using mobile phones too
  • Employers can use these cards to distribute salary even to the employees who do not have a bank account
  • Train, air and bus ticket booking online
  • Movie ticket booking online
  • Mobile and DTH recharge online
  • Online shopping
  • Shop at any merchant outlet
  • ATM cash withdrawal

Eligibility

The applicant should be 18 years and above.

How to apply or purchase prepaid card

  • Customer visits the outlet
  • Fills application form
  • On card activation customer can begin to use card for online transactions
  • An address and ID proof along with passport size photographs are submitted
  • Card would be upgraded in 3 working days on submission of address and identity proof
  • After upgrading the card customer can use it within 3 business day. The limit of the card is upgraded from Rs 10,000 per month to Rs 50,000 at any point of time.

Fees and Charges

Item or Service

Fee

Issuance Fees

Rs. 100

Reload at Outlets

Reload slabs as: Charges applicable basis slabs (Minimum of Rs.10 & maximum of Rs.35)
1-1500 – Rs. 10
1501-2500 – Rs. 15
2501-12000 – Rs. 25
12001 & above – Rs. 35

ATM Cash Withdrawal

Rs. 22 from other – Bank ATMs(inclusive of tax)

Annual Fees

Rs. 20 per year (will be levied monthly Rs 1.85 inclusive of taxes)

ATM and IPIN re-generation Fees

Rs. 30

Card Replacement/Damaged

Rs. 70

Statement from ItzCash World Outlet

Rs. 10

Inactive Card Fees (for 6 months)

Rs. 25

Card Closure Fee

Rs. 50

ATM Balance Enquiry

Rs.10 from other bank ATMs (Inclusive of tax)

Card Issuance after Expiry

Rs. 100

Payment Gateway charges

As advised on various websites and Payment gateways

Reload through Net-banking

Charges as applicable

 

Above table is showing a complete list regarding the prepaid cards that you can buy or renew from a bank.

List of Banks Are Offering Pre-Paid Cards

Following banks are offering pre-paid cards in India:

  • ICICI Bank
  • Axis Bank
  • HDFC Bank
  • State Bank of India
  • Yes Bank
  • American Express
  • Kotak Mahindra Bank
  • Bank of Baroda

How to choose your prepaid card

To work out the suitable prepaid-card you require thinking about how you will target to use it. Once you considered how you will use your card, you require comparing dozens of several cards on offer. You can see the comparison tables for the exclusive offers available that can save your money. Some cards provide cash back on your spending while others will not charge you a fee to take the card. Three main differences are there with these cards. They are the currency you load onto the card, how you top it up and also the fees it charges.

Security Of Prepaid Card

The prepaid card comes with a single PIN that gives entire security of usage throughout any merchant outlet terminals and online portals in the India.          

Flexibility Of Prepaid Card

This card can loaded with any documentation between Rs 500 to Rs 50,000. The card can be achieved within hours of issuance. You can get E-Gift card instantly.

Universal acceptance

Axis Bank gift cards can be used at all the merchant outlets and also online portals opening the world op options to the receiver of the gift.

Important Things That You Should Know

Few risks are associated with this card:

  • Loss of theft is a natural risk connected with money. These cards are not an exception of this.
  • People who know the number of your card can misuse this so keeping the card details secret is of prime importance.
  • There can be hidden charges associated with this card so you should read the terms and conditions and understand them clearly before buying these cards.
  • Consumer may lose money in the transaction. Therefore it is better to buy these cards from well-known financial organizations.
  • Before buying the card, know the validity period and the locations where these cards can be used.
  • In case of theft or loss the recovery method should be known. Also know if the card has any liability protection in such cases.

Maximum limit available with a prepaid card

The Reserve Bank of India increased the maximum balance that can be made available in a prepaid card to Rs 1 lakh from Rs 50000.

Steps To Be Taken If Prepaid Card Is Lost

Below are the steps that are necessary to get a lost prepaid card back:

  • Find the prepaid card number
  • Contact the prepaid card seller
  • Contact your bank

How To Prevent This Card From Getting Lost

You should take the following precautions:

  • Keep the prepaid card in your wallet
  • Record the number of the prepaid card
  • Keep the card into an App or Mobile Wallet
  • Take a picture of the Card
  • Register the card
  • Save the receipt of the activation

Bottom Line:

Getting a prepaid card is convenient for everyone. It gives you happiness and safety since you are not required carrying liquid cash. So you can keep any prepaid card with any bank. It is important that you are keeping a prepaid card of any bank to buy gift or other important things. It serves as liquid cash. Go for such a bank that will give you prepaid card without any hassle in the future.

Your To-Do List:

Step 1: Contact at the Bank from which you want to get a prepaid card along with necessary documents. Ask about the requirements or eligibility of getting a prepaid card.

Step 2: Take the form and fill it properly. If you want to apply online to get a prepaid card you are required to fill the form online.

Step 3: After filling the form properly you need submitting it to the Bank.

Step 4: After a certain time of the submission of the form the card will be dispatched to you

Step 5: You may go to the bank to activate the card

How Can We Help Our Customers

Step 1: We have years of banking experience and can tell you which bank’s prepaid card will best suit your needs.

Step 2: We will start a study on your behalf about which bank’s debit card will provide you maximum security and also go with your requirements.

Step 3: Applying for a prepaid card needs involves lots of documentations and so it needs time. We know the value of your time and we perform all the paperwork to apply for a prepaid card.

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