What is Prepaid Card: Meaning, Types & Benefits
27 Jun 2023
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In today's digital age, convenience and security are the two primary concerns for customers when it comes to making payments. With prepaid cards, you can have the best of both worlds. Prepaid cards are increasingly becoming popular, and it's essential to understand what they are, how they work, and the benefits they offer.
What is a Prepaid Card?
A Prepaid Card is a type of payment card that is preloaded with a certain amount of money, allowing you to make purchases, withdraw cash, and pay bills, among other things. Prepaid cards work in the same way as debit and credit cards , but instead of accessing a line of credit or linked bank account, you use the balance loaded onto the card.
Types of Prepaid Cards
There are different types of prepaid cards available in India, each serving a specific purpose. Here are some of the most popular types of prepaid cards that the Bank of Baroda offers:
Baroda Reloadable Card Physical Variant
The Baroda Reloadable Card Physical Variant is a prepaid card offered by the Bank of Baroda. It can be used for online purchases, cash withdrawals, and payments at merchants who accept RuPay. This card can be loaded with a maximum of Rs. 1 lakh and has a validity of 3 years. The card can be recharged several times, and cash withdrawals from ATMs are also permitted.
Baroda Reloadable Card Virtual Variant
Bank of Baroda also offers a virtual edition of the Baroda Reloadable Card , which is similar to the physical variant. This digital prepaid card is exclusively valid for e-commerce/online and online platforms and is suitable for individuals who like to pay using their smart devices. ATM withdrawals are not permitted as it is non-tangible.
Gift Card (Physic al Variant)
The Bank of Baroda Gift Card , powered by RUPAY, is a convenient and accessible way to access your funds across India. This gift card allows you to make purchases at over 2.6 million merchant outlets that accept RUPAY Cards. It is a perfect alternative to carrying cash, as it provides a secure one-time password for online transactions. While it cannot be used for ATM cash withdrawals, it provides instant activation and intimation to both the purchaser and beneficiary, making it a flexible and reliable choice for all your gifting needs.
Gift Card Virtual Variant
Similar to the physical variant, the Gift Card Virtual Variant can be used for online transactions and is an excellent option for gifting. A great alternative to cash, it can only be used on online/e-commerce platforms with a secure one-time password.
Travel Card- Multi Currency Forex Card
It is a prepaid international currency card that is intended to make your overseas travel a pleasant one. When compared to currency and traveller's cheques, the card is safer, more secure, and easier to carry. Instead of wasting time at money changers or encashing your traveller's cheque, the Baroda Travel Easy Multi Currency Forex Card guarantees that your time is best spent on your leisure or business trip.
The Baroda TravelEasy MCFX card is accepted at over 220 authorised foreign exchange outlets in India. The card may be used to withdraw cash from ATMs and make purchases at any of the 25 million merchant locations that display the VISA logo across the globe.
Features and Benefits of Prepaid Cards
Prepaid cards offer a range of features and benefits, making them an attractive option for many individuals. Some of the key benefits include:
- Convenience:
Prepaid cards are easy to use and can be used for everyday transactions like shopping, paying bills, and withdrawing cash.
- Security:
Prepaid cards offer a high level of security as they are not linked to a bank account. In case of loss or theft, the card can be easily blocked, and the remaining balance can be transferred to a new card.
- Flexibility:
Prepaid cards come in different variants and can be used for different purposes like travel, gifting, and everyday transactions.
- No Credit Check:
Prepaid cards do not require a credit check, making them accessible to individuals with no or poor credit history.
How to Get a Prepaid Card
Getting a prepaid card is a straightforward process. Most banks and financial institutions offer prepaid cards, and they can be applied by visiting a branch. The application process typically involves providing some basic personal and contact information, and in some cases, submitting KYC documents.
To get a Bank of Baroda Reloadable Card, for example, users can visit the Bank of Baroda branch to submit the necessary documents. Once the application is approved, the user can collect the card from the branch.
Conclusion
Prepaid cards are an excellent tool for individuals who want to enjoy the convenience, flexibility, and security of a payment card without the risks associated with credit cards or debit cards . With different types of prepaid cards available, there is an option for everyone, whether it is for gifting, travel, or everyday transactions. Additionally, prepaid cards offer a range of benefits, including no credit checks, high security, and worldwide acceptance. With the right prepaid card, you can enjoy the convenience and flexibility of a payment card while keeping your finances secure.
In conclusion, prepaid cards are an excellent option for anyone looking for a convenient, flexible, and secure payment option. Whether you are travelling, gifting, or making everyday transactions, a prepaid card always comes in handy. So, go ahead and explore the different types of prepaid cards offered by Bank of Baroda and choose one that fits your needs and lifestyle.
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Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
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