One of the most crucial elements of running a successful business is employee satisfaction. All businesses are reliant on dedicated employees who feel valued for their work.
Reloadable prepaid Visa cards are an easy way for business owners to make staff members feel valued through reward programs; money can be added to the card on an ongoing basis as a recognition reward/gift for outstanding performance or meeting a company goal.
The best thing about these cards, and as their name suggests, is that they're reloadable. This reduces postage costs when mailing gifts to employees and eliminates the time and effort needed to purchase new corporate rewards. An employee's reloadable prepaid card is simply reloaded with money each time they achieve results, reach a milestone, or complete an action.
Below we discuss 5 common misconceptions that make businesses reluctant to start reaping the long-term benefits of reloadable prepaid cards:
1. Reloadable prepaid cards are difficult to purchase
This may have been true 5 years ago, but it simply isn't the case anymore. There are a number of companies and banks that specialize in corporate prepaid cards and understand how to deliver large volume prepaid programs for employee rewards, channel sales, consumer rebates and more.
2. All prepaid cards are the same
Just like credit cards and debit cards, prepaid cards come in many different varieties. Cards differ in terms of load limits, fees, and charges for usage. Businesses can discuss their specific needs with a corporate prepaid card providers and create a program that best suits them. For instance, fees and functionality of an employee rewards program would be very different from a sales incentive or spiff program, which would be very different from a consumer rebate or direct mail promotional program.
3. People are suspicious of prepaid cards and up-take has been low
A September 2014 Federal Reserve Bank study found that prepaid cards are now widely embraced by middle and higher-income households, and in the US prepaid is the single fastest growing segment in payments. Recent research by Leger has shown that Canadians have high levels of awareness with prepaid cards. 61% are aware of reloadable, open loop prepaid cards, and 73% of its users express satisfaction. 64% of consumers are aware of non-reloadable prepaid cards, and 76% have expressed satisfaction.
The 2014 Incentive Trends Survey shows that employees widely prefer receiving prepaid cards over other forms of corporate rewards, including merchandise, retail gift cards, and incentive travel. Employees prefer prepaid because it lets them purchase whatever reward is most meaningful to them, both online and around the world.
4. Prepaid payments are a complicated way to manage rewards and incentives
Using reloadable prepaid cards is simple with the right prepaid provider.
Planning and launching a program is generally a 5 step process: planning, design, set-up, reporting, and payments. Read more about these steps here. Businesses simply provide their corporate prepaid card provider with program specifications, agree on the type and number of cards required, and use the prepaid provider's services (usually an online ordering portal) to place card orders, load, and manage their prepaid cards.
Prepaid's flexibility also allows for high levels of integration with existing reward platforms and corporate CRM and ERP systems.
5. Reloadable prepaid cards are limited in their applications
In addition to being a secure and effective way to reward employees, the cards provide additional marketing and advertising opportunities. By customizing the design of the prepaid cards and adding the company's logo to the card and card collateral, businesses can increase their wallet share and marketing reach.
Every time a cardholder uses their prepaid card they are reminded of the company that provided the card, and associate purchases with that card. This brand visibility makes prepaid a prestigious and compelling vehicle for delivering loyalty rewards, consumer promotions, subscription incentives, mail-in rebates, giveaways, and more.