Instant issue prepaid cards are prepaid cards that corporations keep in inventory on-site, and that can be activated, loaded and instantly issued to recipients on-demand.
Oil and gas companies, insurance providers, consumer packaged goods companies and many others are adopting instant issue prepaid cards. Here's why.
Save Time and Money by Moving Away from Cheques
Instantly issuing prepaid cards can drastically reduce time and costs associated with disbursing funds to employees or customers. Scotiabank's cheque issuance cost model calculates the cost of issuing cheques, and it can run anywhere between $10 and $25 dollars per cheque, when considering all direct, clerical, and handling costs.
Plus consider the hassle for cheque recipients. After waiting a few days or weeks to receive the cheque in the mail, recipients have to go to the bank to deposit it. Once it's been deposited, it typically takes up to five days for the cheque to clear. The entire process can take weeks.
On the other hand, instant issue prepaid cards can be activated, loaded with funds, and given immediately to recipients on the spot. Recipients can then spend their funds immediately since prepaid cards are accepted at millions of online and store locations around the world.
Simplify Employee Expenses and Compensation
Consider oil and gas, mining and logging companies that have many workers stationed in remote areas with no access to bank machines.
Workers in the field or on the road need money to cover both personal and professional expenses (food, gas, parts, etc.). With instant issue prepaid cards workers can receive cards with cash on them, and employers can better manage and monitor disbursements.
Each card can be reloaded weekly or bi-weekly with designated amounts, and access to these funds can be limited to ensure the money is spent on what it's intended for.
Companies today use prepaid cards for pier-diem management, business travel expenses, worker reimbursements, employee rewards and incentives, and more.
Streamline Insurance Claims
Imagine visiting your doctor without having to deal with paying for services up front, filling out insurance forms, and submitting receipts. With instant issue prepaid credit cards, medical and dental treatments are paid immediately by your insurance plan using restricted access funds on your insurance provider's prepaid card.
The swipe of a prepaid card does all that work in the time it takes to make small talk with the receptionist.
Property insurance providers are also taking advantage of these versatile cards for the benefit of their planholders. When a family experiences a house fire or any sort of serious property damage, the disruption to their lives can be devastating.
The first thing they need are necessities: money to pay for food, clothes, transportation, and a hotel. But how do you pay for these things if you've lost your bank cards in a fire?
How does an instant issue prepaid card help? When insurance adjudicators arrive at the scene they can quickly assess the damage, load a prepaid card with insurance funds, and issue the card on the spot. The homeowner can immediately use the money to cover any necessities their family may need.
Bolster Rewards And Recognition Programs
Companies like Google, GM, and Samsung issue prepaid Visa cards as part of their internal reward and recognition programs.
Rather than use a number of different ad-hoc rewards, (coffee cards, restaurant gift cards, events, merchandise), many companies purchase and load custom designed prepaid cards.
Managers have access to a virtual payments platform, which allows them to load funds to a prepaid card that can be used immediately. In addition to loading cards, administrators are able to manage money, access reports, and issue more cards.
Cards are used for a wide variety of rewards (ad hoc recognition, anniversaries, training and safety rewards, sales incentives, etc.) and employees love them because they can choose to purchase whatever reward is most meaningful to them.