Whether in digital or physical form, prepaid cards are enticing rewards. These engaging cards are ideal for companies that need customer loyalty marketing or engagement solutions for employees.
Prepaid reward cards let your employees secure their funds and keep them in one place. They also give companies revenue before anyone makes their first purchase. However, loyalty platforms evolve as technology evolves. Prepaid cards are no exception to this rule.
Reward cards began as a wave of plastic gift cards meant for specific merchants. Now, many of these cards are almost universally accepted worldwide. However, unlike gift cards, prepaid reward cards can be reloadable and non-expirable, making them more reliable and versatile than a simple gift card.
As e-commerce becomes the preferred shopping method for your employees, companies are offering more virtual solutions such as prepaid reward cards. But what is a virtual prepaid card, and what makes it better than a physical one?
Virtual and physical prepaid cards have numerous benefits with few drawbacks, making them perfect for everything from corporate incentives and sales motivation to performance rewards and employee retention.
Virtual cards offer better security, for example, and do not increase production costs. On the other hand, physical cards offer ease of use and marketing benefits to employees and employers. So, how do you decide which type of prepaid card will deliver the results you need for your next incentive program? Here’s an in-depth comparison of both options to help you decide between virtual or physical prepaid cards.
Physical Prepaid Cards
Physical prepaid cards look nearly identical to credit or debit cards. These prepaid cards feature the cardholder’s name, a card number, and a magnetic strip.
Physical prepaid cards are versatile. Some are usable for making purchases anywhere, including in stores, online, or over the phone. This is important to remember because the more places a customer can use their card, the more likely they are to use it.
Offering this card for your incentive program also gives the user a spending limit or budget. This limit can benefit shoppers who like to be more mindful about what they spend their money on.
Physical prepaid cards are also great for employees who aren’t comfortable or familiar with the technology used by virtual prepaid cards. Since older customers are more likely to participate in rewards programs, it benefits businesses to consider their preferences.
Additionally, physical cards offer marketing benefits. Companies can brand prepaid physical cards with their logos. Besides differentiating your company’s card from others, branded cards may also improve your brand’s recognition.
Benefits of Physical Cards:
- Ability to use online and in-store
- Usable worldwide
- Brandable for your business
- Makes budgeting easier for cardholders
Virtual Prepaid Cards
A digital prepaid card is very similar to a physical one. Otherwise called digital cards, these virtual items typically offer all the same options as physical cards.
However, unlike physical cards, digital prepaid cards are instantly issuable, typically more secure, and incur no production costs for your business.
What that means is, as the technology powering virtual prepaid cards remains ever-evolving, they offer more features and improved security for cardholders. Your employees will likely prefer the ease of not carrying a card around. Digital prepaid reward cards can also be accessible from an employee’s smartphone, offering additional convenience.
Production-related expenses are understandable concerns when deciding between physical and virtual prepaid cards. Virtual cards benefit companies by reducing their production costs. Since these prepaid cards are virtual, no expenses are associated with making and sending them to employees. The money your business saves from these reduced expenses could go towards its rewards program or other employee-related incentives.
What are the Benefits of Virtual Prepaid Cards?
- Instantly issuable
- Can be used immediately
- Ability to shop anywhere online
- No way to lose the card
- No production costs
Is a Virtual or Physical Prepaid Reward Card Better for Your Employees?
These options have several things in common in a world motivated by incentives. Both are easy-to-use, simple, and highly desired rewards. Now that you know what physical and virtual prepaid cards are, needing help implementing them is understandable.
The team of experts at All Digital Rewards is eager to help you grow your incentive program, determine an effective prepaid card strategy, and enlighten you on the best program performance products. We aim to drive higher employee engagement through our Prepaid Reward Management Payment Technology. Call us at 866-415-7703 to learn more about our prepaid incentive reward products and services or schedule a demo online.
The Ezeprepaid™ Visa Prepaid Card and Ezeprepaid™ Visa Virtual Account are issued by The Bancorp Bank, N.A.; Member FDIC, pursuant to a license from Visa U.S.A. Inc. Purchase, acceptance or use of the card constitutes acceptance of the Cardholder Agreement and Virtual Accountholder Agreement. The Visa Virtual Account may be used for electronic commerce, mail order and/or telephone order transactions everywhere Visa debit cards are accepted. The Visa Prepaid Card may be used everywhere Visa debit cards are accepted. The Bancorp Bank, N.A. does not endorse or sponsor, and is not affiliated in any way with this offer.
