Prepaid Card
A prepaid card is generally understood to be a card on which a credit balance is stored. Prepaid cards are used in various areas, including as a means of payment or as a SIM card for cell phones. In the payment sector, a prepaid card is a card that the customer purchases either in a retail store or on the Internet and then uses to pay for services or content on the Internet.
Purchase of a prepaid card
Depending on the payment provider, prepaid cards are available at gas stations, drugstores, kiosks, and supermarkets, among other places. Some providers also offer the option of ordering a prepaid card on the Internet. In this case, the user does not receive a card, but only a code that he or she must enter during a subsequent payment process in an online store. For legal reasons, payment service providers offer amounts of up to 100 euros per person and prepaid card. The available scales below this vary depending on the company.
How a prepaid card works?
Payment is not identical for every prepaid card, but overall follows similar rules. First, the customer purchases a card in the amount of a certain credit at the official point of sale. Then, in the online store of his choice, he puts the desired items in the shopping cart, starts ordering and selects the provider of the purchased prepaid card as the payment method. It is a good idea to clarify in advance which cards are accepted in the preferred online stores. Sooner or later during the ordering process, the user will be prompted to enter the PIN number of the prepaid card. As soon as this has been confirmed, the corresponding amount of credit is debited from the card and the invoice amount is considered paid.
Advantages of the prepaid card
A prepaid card offers the great advantage of complete anonymity. In contrast to payment with a credit card, no personal data has to be entered here. To start the payment process, all that is required is to enter the PIN number printed on the card. Misuse is therefore almost impossible. The prepaid card therefore also meets the highest security requirements for its owner. Another pro for prepaid cards is that they are an alternative for groups of people who cannot use a credit card because of who they are, such as minors. The widespread use of popular prepaid cards offers customers two advantages: On the one hand, they are not restricted when buying a credit card, as they can be purchased almost anywhere. On the other hand, thousands of online stores accept the prepaid card from various providers as a means of payment, making it a flexible payment method.
