Whether rewarding employees, incentivizing customers, or disbursing public program funds, prepaid cards can offer a great mix of security and flexibility. However, before that happens, you must choose the right cards. As you may know, a massive range of prepaid card types exists.
Today’s organizations use prepaid cards for everything from loyalty campaigns and reimbursing corporate travel to wellness initiatives and payroll distribution. Unfortunately, choosing the right card isn’t always straightforward.
In this post, you’ll discover:
- What prepaid cards are
- The many types of prepaid cards that companies use
- How to determine which prepaid card is best for your needs
What Are Prepaid Cards?
Prepaid cards are items preloaded with funds. Companies, organizations, and individuals use these cards for many purposes, including paying for a wide range of personal and business expenses. These cards are similar to debit cards. However, they’re not tied to a checking account.
Instead of drawing from a bank account, prepaid cards are funded in advance and used until the balance reaches zero. Plus, once they’re depleted, many prepaid cards are reloadable. However, others can be set for one-time use if that’s what you prefer.
Prepaid cards typically come in two categories: open-loop and closed-loop. Open-loop cards are usable almost anywhere. Closed-loop cards are restricted to specific merchants or use cases, examples include healthcare-related spending or company-approved vendors.
Buying Prepaid Cards: The Best Options to Consider
Gift Cards
Can’t decide what kind of gift cards recipients want? You don’t have to when you choose Vanilla Visa Gift Cards. Choosing such a widely accepted card is ideal for nearly every occasion. Additionally, partnering with ADR means unlocking access to customizable card designs (including branded cards) and variable load amounts.
When to Use:
- Recipient birthdays
- Holiday gifts
- Customer incentives
- Employee rewards
Corporate Cards
Companies use these cards to manage business-related expenses. While they’re called corporate cards, they’re not only used for executives. Businesses buy prepaid cards for employee rewards, purchasing control, and enhanced security when making purchases.
When to Use:
- Business expenses
- Company promotions
- Travel expenses
- Employee perks
Multi-Purse Cards
It’s understandable to be unfamiliar with a multi-purse. This term describes a single card with multiple balances or ‘purses.’ This type of prepaid card is the best for companies that require flexible spending across different business-related accounts or categories. It’s ideal for budgeting and promotions.
When to Use:
- Loyalty programs
- Promotional campaigns
- Budget
Payroll Cards
Which prepaid card is the best? When it comes to paying wages, it’s tough to beat the convenience of payroll cards. These cards are essential to employees because they ensure workers receive their wages. Employees enjoy using these cards because they eliminate the need for these individuals to go through traditional banks.
Companies that use payroll cards have workers who enjoy secure and timely payments. Payroll cards also help businesses reduce costs associated with printing paper checks.
When to Use:
- Gig economies
- Employee wages
- Seasonal workers
- Expense reimbursements
Health Benefit Cards
A health benefit card is the best choice when buying prepaid cards for healthcare-related spending. A company or organization that issues these cards can restrict their use to certain medical providers, wellness services, or pharmacies, making them ideal to use during employer-sponsored wellness programs or government-related health initiatives.
When to Use:
- Health savings accounts
- Wellness incentives
- Flexible spending accounts
- Commuter benefits programs
Restricted Use Cards
A restricted-use card is ideal for companies that need to limit expenses to specific types of purchases or merchants. It’s most often used when buying prepaid cards to control spending in incentive programs or corporate-related settings.
When to Use:
- Healthcare incentives
- Controlled spending programs
- Corporate rewards
- Employee incentives
Travel Cards
Are you buying prepaid cards for vacation-related purposes? Let your gift recipients enjoy hassle-free traveling with a travel card. These card types can provide in-demand features, including multi-currency support, expense tracking, and fraud protection. Best of all, these widely accepted cards are accepted at many locations worldwide.
When to Use:
- Travel promotions
- Frequent traveler programs
- Business incentive travel
- Corporate travel programs
General Purpose Cards
Companies that need flexibility when buying prepaid cards typically choose general-purpose cards. These cards are typically usable anywhere that accepts card payments. This method is ideal for those who prefer a convenient alternative to cash and checks. ADR can set your business up with general-purpose cards with custom load amounts, personalized messages, and branded designs.
When to Use:
- Online shopping
- General spending programs
- Everyday purchases
- Healthcare incentives
Government Benefit Cards
Many people depend on government benefits. Having government benefit cards lets recipients enjoy a streamlined way to access their funds without dealing with the hassle of paper checks. Organizations that choose these cards can utilize features that include custom benefit delivery schedules, branded cards, and specialized support.
When to Use:
- Government aid
- Disaster relief
- Food assistance
- Transportation subsidies
Which Prepaid Card Is the Best?
Buying prepaid cards is a major decision. Because of that, wanting to know you make the right choices is understandable. Choosing the right prepaid cards means understanding the goals of your organization and the audience you serve.
Do you want open-ended rewards? In that case, general-purpose cards could be your best option. Choose restricted or health benefit cards to have more control over where spending occurs.
Contact ADR for an easier way to buy prepaid cards. Our company has the experience, platform, and resources to assess your goals accurately while choosing the most effective card solutions for your recipients’ needs.
Let ADR Help With Which Prepaid Cards Are Best
Buying prepaid cards means more than choosing something that looks good. It’s about aligning incentives with strategy. When you understand the strengths and best use cases for prepaid cards, you can confidently choose a solution that drives ROI for your business while effectively incentivizing recipients.
Are you ready to find out what prepaid cards are best for your program? Contact All Digital Rewards today for expert guidance and scalable solutions.