Prepaid Card in India

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Prepaid Card in India

Along with the benefits of credit, there are some disadvantages such as credit card users often spend more than their limit but with the prepaid card users first put money in it and then use it so that there is no problem of spending more than the limit.

Prepaid cards have the advantages of both a debit card and a credit card. It looks like a debit card but it is not because the prepaid card is not linked to any bank account. Prepaid card is accepted everywhere where debit card and a credit card are.

How do prepaid card works?

In prepaid cards, the user has to first add the money into the card to use it. As a comparison to a standard credit card that operates on a loan from the issuing bank, consumers can use the available funds on their prepaid card to buy accordingly. Like the gift card, the user can do the transaction as long as the cash is available in the prepaid card.

Types of prepaid credit card:-

  • Open looped cards
  • Closed Loop Cards
  • Semi-Open Looped Cards
  • Reloadable cards
  • Non-Reloadable cards

Open looped cards:-

Open looped cards are also known as “open system cards”. These cards are affiliated with brands like MasterCard or Visa and these cards also have a logo of these brands on it. It is issued by the banks or institutions in partnership with the provider. These cards are acceptable to all merchants that are approved by banks.

Closed Loop Cards:-

With closed-loop cards, you can buy goods from some merchants who are affiliated and it has limited acceptance. You can take the gift card as an example for closed-loop cards.

Semi-Open Looped Cards:-

This card is also accepted by the only those merchants or chains who are affiliated to this card. These cards are mostly issued by shopping malls like Big Bazaar or Pantaloons etc.

Reloadable cards:-

This card has a facility that if it runs out of money, it can be reloaded at any time. Most of the cards in India comes with the same features.

Non-Reloadable cards:-

In this type of cards you can only load money and use it once, once its money is exhausted, then you cannot reload it. We can consider gift cards as such cards because once we have used the gift card, we cannot use it again.

Best prepaid card providers-

  • HDFC bank
  • SBI
  • ICICI bank
  • Yes Bank
  • Axis Bank
  • American express
  • RBL Bank
  • Kotak Mahindra Bank
HDFC bank:-

There many types of prepaid card offered by HDFC bank depending on the user requirement. HDFC’s forex card is considered best for international travellers. These cards are available with both Visa and MasterCard brands. HDFCalso provides such cards which you can reload if needed. HDFC also provides tracking facility on prepaid cards so that you can track the activity of your card anytime online. HDFC many prepaid cards offer insurance coverage. User can track their card activity via internet banking too. Here are the list of the prepaid cards provided by the HDFC bank

  1. GiftPlus Card
  2. FoodPlus Card
  3. MoneyPlus Card
  4. Apollo Medical Benefit Card
  5. HDFC Bank DigiThane Card
  6. Corporate Expense Management Solution
  7. FleetXpress
  8. GPR Card
  9. Reward Card
  10. MoneyPlus Benefit Card
  11. MoneyPlus Petro Card
  12. MoneyPlus PettyCash Card
State Bank Of India:-

SBI provides various type of prepaid cards depending on customer requirements. The bank account is not required to apply for SBI Prepaid Card and through this card, customer can do the transaction on e-commerce site easily. SBI prepaid card also provides a facility of cash withdrawal from the ATMs. There is a limit on a prepaid card to add the minimum amount and the maximum amount. The minimum amount limit is Rs 100 and the maximum amount is Rs 10,000.

  1. State Bank Gift Card
  2. State Bank EZ Pay Card
  3. State Bank Foreign Travel Card
  4. STATE BANK ACHIEVER CARD
  5. SBI NMRC CITY1 CARD
  6. NAGPUR METRO MAHA CARD
ICICI bank:-

ICICI Bank also provides various types of prepaid cards. Users can also reload money online by pocket cards. Pockets card are nowadays very popular prepaid credit cards which are widely accepted and can be used for DTH and mobiles recharge, sending gifts and money, bill payments, buying movie tickets etc. ICICI provides many gifts cards and travel cards. Here are the list of ICICI bank prepaid cards-

  1. Expressions Gift Card
  2. PayDirect Card
  3. Pockets, the Digital bank
  4. Multi Wallet Card
  5. Gift Card
  6. Meal Card
  7. Reimbursement Card
Yes Bank:-

Yes bank also offers various types of the prepaid card according to the customer requirement and purpose. Yes Bank has a maximum limit of 50,000 to add money to prepaid cards. Here is the list of the prepaid card offered by Yes bank

  1. YES BANK PAYROLL CARD
  2. CORPORATE GIFT CARD
Axis bank:-

The Axis bank prepaid card is the best option for employers so that they can pay their employees salaries or incentives. Smart pay cards of Axis bank make the transaction quickly and very safely. Axis bank also provides the cards which can be reloaded. Here is the list of the prepaid cards provided by the Axis bank-

  1. Corporate Gift Cards
  2. Rewards Cards
  3. Smart Pay Cards
American Express:-

American Express offers TAJ prepaid card which can be used for dining or hotel reservation at any Indian hotel. There is also a demerit of this prepaid card that its users cannot withdraw money. Here is the list of the cards provided by the American Express-

  1. American Express Serve
  2. American Express Serve® FREE Reloads
  3. American Express Serve® Cash Back
  4. Personal Gift Cards
  5. Business Gift Cards

Benefits of prepaid card:-

  • Its biggest advantage is that the user has no debt because Because in order to do a transaction with a prepaid card, firstly user has to add funds.
  • Generally, banks check some criteria before approving for credit card such as CIBIL score or prepaid card on credit history but there is nothing like this on a prepaid card
  • There is a facility of blocking a card in case of loss of card
  • The bank account is not required to apply for this card.
  • There is a facility of tracking activity of the card by which the user can track the activity of their card via mobile phone.
  • User can withdraw money from the open-looped prepaid card.
  • Many prepaid cards also provide rewards and cashback when they are used for the transaction.
  • The prepaid card user can set their own limit.

Documents required for prepaid card:-

  • Identity proof such as Aadhar card, Voter card, PAN card etc.
  • Residence proof such as utility bill, Voter card, Aadhar card etc.
  • A duly filled application form
  • Two passport size photographs

How to apply for a prepaid card?

  • Go to the https://www.bankagent.in/
  • Search for prepaid card option and click on that
  • Now select the bank which prepaid card you want and then click on the apply now button
  • Fill the form and submit it with the documents

Some facts about the prepaid card:-

  • A bank account is not required to apply for it like a debit card or credit card.
  • Like credit cards, there are some charges in it, such as cash reload fee and monthly usage fee etc.
  • A prepaid card does not help you to improve your credit score.

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