Credit cards have long usurped cash as shoppers’ payment method of choice. Convenience, security, and versatility make them a sensible go-to option for making purchases in person or online. For some consumers, however, access to a credit card is not an option due to limitations or restrictions prohibiting them from meeting criteria to being granted a card.
Prepaid cards are essentially credit cards – with a MasterCard or Visa logo – but their balance is predetermined by the cardholder via prepayment. The cards can be used everywhere traditional credit cards are accepted: ATM’s, shops, restaurants, online, and over the phone. There are a number of consumer benefits to prepaid cards, including:
For those with poor credit, or limited credit history, prepaid cards are a perfect option for adopting cashless payments. To be issued a credit card, one needs to fill out an application and have their credit history checked to determine whether they are accepted for the card. Prepaid cards have no such prerequisite, and are available to all consumers over 18 regardless of background, giving people the opportunity to carry a Visa or MasterCard. Since these cards are prepaid (meaning the value is determined by how much credit is loaded onto them, rather than a line of credit), there is no risk to the holder of running past their limit and being charged exorbitant fees, and no risk to the issuer that holders will default on payments.
Like credit cards, prepaid cards are accepted around the world and online – through any merchant who displays the Visa or MasterCard logo. This enables consumers to shop and pay quickly and easily, through the simple swipe of a card, or to shop online from the comfort of home (or mobile device) at any time of the day. For travelers with a card, gone are the days of seeking out a currency exchange vendor and protecting a lot of cash in a travel pouch.
Prepaid cards are like cash, with an added layer of security. Once the balance has been set by applying cash to the card, the holder is protected from risks such as fraudulent purchases, loss, and theft. If fraudulent charges appear on the card, the holder can report it to their issuing company to investigate and reimburse the funds. Card holders can rest comfortably knowing their cash is protected with a prepaid card.
By now, most people have a good understanding of how to use a credit card, so adopting a prepaid card is simple as they’re used in the exact same way. With most issuers, adding funds to the balance can be done through a transfer of funds from a bank account to the card. The card holder can then safely and easily make purchases anywhere credit cards are accepted: websites, ATM’s, hotels, restaurants, shops, and more.
Tracking purchases against a budget can be challenging, especially between cards, accounts, and cash. Prepaid cards make budgeting easier and smoother. Because there is no credit line – the balance is always determined by the prepayment made to the card for spending – holders don’t need to worry about going into debt, or incurring fees from running past their limit.
A great use for budgeting with a prepaid card? Take the money that would be allotted to spending or a specific project, and load that onto a prepaid card. This will keep the charges separate from the main account or savings, and make spending easier to track. And since there is no cash advance from the card issuer, there is no need to worry about incurred interest to take into account or looming payment due dates.
Information for Merchants
This year, DPO launched DumaCard – a prepaid MasterCard for merchants. The DumaCard is linked to the merchant’s DPO account, and the balance is automatically updated based upon the balance of this account, saving time and effort in manual processes. The card can be used globally and online, anywhere MasterCard credit cards are accepted. And with the DumaPay App, it’s easier than ever to receive payments and automatically direct funds to the account linked to Duma Card.
The card can also be used for business expenses, allowing merchants to issue cards to various departments and keep budgets separated and easy to track. Merchants with presence in various locations can have localized cards issued in their relevant currency. Merchants also find it handy to use prepaid payroll cards, saving the time and expense of printing checks for employees.
In order to get the DPO prepaid card – DumaCard, registered merchants can fill and submit this form. One of our reps will get back to you shortly.
Prepaid cards are available with more ease and control than traditional credit cards, allowing more people to leverage the benefits of cashless payments. They are a secure, easy, convenient alternative to cash and over the years have become very popular globally.