Whether in digital or physical form, prepaid cards are enticing rewards. These engaging cards are ideal for companies seeking customer loyalty marketing or employee engagement solutions.
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 in tandem with technological advancements. 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?
Physical vs. Digital Cards
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.
Now that you know what a virtual prepaid card is, how do you decide which type of 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 and physical prepaid cards.
Rewards Cards vs. Gift Cards
Both options provide monetary value to recipients. However, rewards cards are typically part of structured incentive programs, which offer more flexibility and branding opportunities. On the other hand, gift cards are often retailer-specific and best for one-time gifting. Additionally, gift cards can sometimes lack the flexibility of modern rewards programs.
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 that defines what virtual prepaid cards are. Since older customers are more likely to participate in rewards programs, it benefits businesses to consider their preferences.
Additionally, physical rewards cards and gift 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.
That means that, as the technology powering virtual prepaid cards continues to evolve, they offer more features and enhanced 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 rewards cards vs. gift cards in physical or virtual form.
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
FAQs
1. What is the difference between a virtual prepaid card used for rewards purposes and a gift card?
A virtual prepaid card is often a part of a company’s structured rewards program. It provides flexible usage and sometimes allows for reloading. By contrast, a gift card is typically only usable until the balance runs out.
2. Is a rewards card the same as a gift card?
Not exactly. A company can issue a rewards card as part of a loyalty or incentive program. On the other hand, companies typically buy gift cards to use for general employee gifting purposes.
3. How does a reward card work?
A reward card functions like a prepaid debit card. It’s usable until its balance runs out. Issuing reloadable cards makes them usable once a balance is added. Companies issue rewards cards digitally or physically, often to recognize employee behaviors, actions, or milestones.
Is a Physical or Virtual Prepaid 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 a virtual prepaid card is and how it differs from physical cards, needing help with implementation 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.