Many prepaid cards are marked with Visa or MasterCard, which makes them look like credit cards in the bank, but in fact, when you use the prepaid card to spend the money in the card, the prepaid card will also be invalid.
It is worth noting that the biggest difference between this kind of prepaid card and credit card is that many prepaid cards do not need points, and even if they are cross-border and cross-regional, these prepaid cards are basically suitable for anyone to use.
What kinds of prepaid cards are there?
GPR card
GPR cards work in a similar way to debit cards, except that users pre-charge the cards. When you buy this GPR card, the user usually receives a temporary debit card for purchase and consumption until the funds on the card are used up. It should be noted that banks or credit companies may also charge a monthly fee from the balance of the card. No matter whether the user uses the card or not, the monthly fee will be deducted from the balance in the card, and if not, remember to cancel it.
Gift Card
Gift cards are actually prepaid cards. I believe that gift cards are very easy for everyone to understand, that is, specific businesses, such as Apple, Microsoft, Amazon and other platform businesses. Stimulate consumption by selling your own shopping cards. The principle is that companies or merchants charge the same amount of money for gift cards and then sell them to users, who can use the money in the cards to buy goods in designated shopping malls.
Retail card
Retail card is just another name for store credit card, which can only be used for purchases by specific retailers or related retailers. Retail credit cards are usually suitable for users with good reputation, and there is no annual fee and service fee. Businessmen are recognized for offering generous rewards. These rewards include the first purchase discount, the "cash" after purchase can be returned, and the cardholder can also enjoy the monthly promotion activities, mainly to improve the user's loyalty to the brand.
Health savings account
Health savings account refers to the medical savings account with tax incentives that can be used when participating in medical insurance. This savings account is owned by individuals, which is different from normal medical reimbursement. Moreover, unlike other accounts, the funds in the health savings account will accumulate year by year without expenditure, and there is an opportunity to obtain tax-free interest income from the account. The funds in this account can be used to pay medical expenses at any time.
Pay card
Salary card is a kind of prepaid card, which employers use to record employees' wages or salaries every payday. These cards are made by major payment processing institutions such as VISA and allow users to use them anywhere they accept electronic payment cards. Users can withdraw money from ATMs or make purchases with cash just like using traditional debit cards. Wage cards can also be reloaded, so workers don't have to receive new cards every wage cycle.
Government welfare card
This kind of card mainly exists in welfare countries in Europe and America. In the United States, some state and federal government agencies will use prepaid cards to pay unemployment benefits, child support and other government benefits. However, many welfare cards issued by the government will charge monthly fees and maintenance fees.