When you first hear the words prepaid credit cards you may think of birthday or Christmas gifts, or even the turnstiles of cards at your local grocery store. Add using prepaid credit cards for business to that list. Prepaid cards come in many forms and can be customized and branded. They can either be reloadable or non-reloadable and can be configured to allow ATM withdrawals. The idea that the card itself serves as a constant reminder of the business makes it a valuable marketing tool, as well as an efficient way to do business.
How Prepaid Cards Work
A prepaid card for business is designed to link to several services and help a business develop its financial solutions. The planning and launching of a prepaid card goes through six phases, starting with planning, which defines the program. The design phase involves branding the program, followed by the set-up, which includes processing and payment options. The reporting phase comprises program results and analytics while the payment phase is configured for flexible or secure options. Timelines marks the final phase that gets card out the door.
Businesses have options on how they want their prepaid cards to look. Cards can be standard without images or can be co-branded with the company name, logo or desired imagery. Colour of the card can also be customized. Like a regular credit card, the Visa logo is in the lower bottom corner. The card is attached to a standard carrier that explains how to use the card or this section can be replaced with the company's own branding. Businesses can add additional inserts that contain special messaging for cardholders. Order processing can be set up to accommodate whatever system is most appropriate. One of its main advantages is that it allows for easy control of card funding. Cards can be pre-loaded with varying amounts and clients can place orders anytime they want using Conductor, a 24/7 online portal. Order activity can be tracked on either standard or custom reports. Standard reports use real-time data for users to analyze card activations and balances. Customer reports measure various consumer behaviour metrics. Payment option can either be set up for long term use or on a pay-as-you-go basis. Different funding limits are granted for long term escrow management, whereas the pay-as-you-go method is more flexible. The cards take 2-8 weeks for delivery, with the no-branding option having the quickest turnaround time.
Reasons for Prepaid Cards
Giving customers the option to pay for products with prepaid cards helps motivate them to become more loyal to a brand. The fact that the brand gives customers access to cash makes it valuable. The card can also give them access to promotions that save them money. In this sense using prepaid cards for business provides incentives for customers while connecting them with the brand. Many businesses use prepaid cards alongside marketing and sales campaigns to offer deals and rewards to employees and customers in a simple and efficient way. In the process the company sees greater ROI by keeping customers up to date on promotions. By getting customers to use prepaid cards for rebates, car dealerships and retailers have been successful at increasing business. Advertisers use prepaid cards in campaigns for email, direct mail and social media, which is helping response rates. Ultimately, research shows that prepaid cards are extremely valued by both customers and employees alike, due to the various rewards and incentives attached.