What is Prepaid Card? Definition and Meaning - Ikajo Glossary


Prepaid Card

The form of a Prepaid Card is very similar to common credit/debit cards. It has a magnetic stripe as well as a chip to provide the security measures. This kind of card has a link to the account in the financial organization when the client operates the funds, he/she spends money which loaded onto the card earlier. So the customer usually can’t spend the bigger amount of money than he/she already has on the prepaid card.

If the client is eager to buy such a card, he/she needs to decide how much cash he/she wants to put on it. PC commonly has an upper limit for funds, so the client can’t put too much money on it. This happens because the cards are designed for day-to-day purchasing.

The consumer can top up the PC before the act of purchasing or add some money to the card any time the client wants. There are several ways to reload the card among them setting up the direct deposit, transferring money from the account in the financial institution along with bringing some cash to a retail store.

If the customer already has some funds on the PC, he/she can cash out the funds at ATM or simply spend them on making some purchases. It is safe because the card is secured by a code, but in the case of the card loss or theft the card issuer can replace it or block the original one.

Thank You For Order
Thank you!

Thanks for filling that out. We really appreciate you giving us a moment of your time today. Your ticket on its way to your email.