What is a prepaid card? Features and benefits of using a prepaid card

In the 4.0 technology era, customers often transact, pay for shopping expenses through bank cards. Prepaid card products being released in the market have the same function as a debit card without opening an account. Customers are only allowed to spend the limit on the card. So what is a prepaid card? Find out in the article below.

What is a prepaid card?

A prepaid card is an ATM card that can withdraw money, transfer money, and pay bills with the limit contained in the card. Customers using prepaid cards will not need to register to open an account like when using a debit card. However, you can only spend an amount less than or up to the limit of your prepaid card.


Prepaid card classification

Customers can divide prepaid cards according to cardholder identity, usage scope or physical properties.

By cardholder identity

Prepaid cards are classified into two types of cardholder identity cards, which are:

  • Identity card: Card with cardholder’s name, maximum top-up amount of PHP 5 million/time, can be loaded many times.
  • Anonymous card: The card does not have the cardholder’s name on the card, which can be purchased and given to relatives and friends. This card can only be loaded once, up to 5 million PHP.

Usage scope card

There are 2 types of prepaid cards according to the scope of use:

  • Domestic prepaid card: for domestic use only.
  • International prepaid cards (Visa, MasterCard): can be used both domestically and internationally.

According to physical properties

Classify prepaid cards by physical properties into 2 types:

  • Physical prepaid cards: physical cards, like ATM cards.
  • Virtual prepaid cards: only use information to register cards for online payment, mainly virtual Visa cards.

Features of prepaid card

Prepaid cards mostly have the same features as other ATM cards:

  • Cash withdrawal or transfer: money can only be transferred within the same banking system. Applicable to identification cards can be domestic or international cards.
  • Bill payment: can pay via POS machine.
  • Buy online: can pay online for virtual Visa card or Visa prepaid.

Benefits of using a prepaid card

Customers using prepaid cards will have the following benefits:

  • Convenience: easy to pay online easily anytime, anywhere, can be converted to another country’s currency when used abroad.
  • Ease of use: pay online or pay at POS in a simple, convenient and fast way.
  • Spend management: Customers can only spend within the card’s limit. Periodic spending statements from the bank when using the card will help customers review and control spending.
  • Safety: Using a card to pay, without using cash will help customers limit many risks. The prepaid card is not linked to the bank, so it ensures the safety of personal information. In case the card is lost, the customer only needs to notify the bank to block the card and transfer the money to another card.
  • Simple card opening procedure: Customers from 15 years old can register to open a card. Cards with a balance can be used for payment and there is no card maintenance fee.

How to apply for a simple prepaid card

The procedure for opening a prepaid card at banks is also very simple and fast at the bank’s transaction points and branches with the following documents:

  • ID/CCCD is still valid.
  • Card application form.
  • No need to open an account and no financial proof.


What’s the difference between prepaid and debit cards?

Prepaid cards do the same thing with debit and credit cards. However, prepaid cards have differences that are:

  • Prepaid cards are postpaid, debit cards are prepaid.
  • Prepaid cards do not need to open a bank account, debit cards need to open a bank account.
  • The prepaid card is not valid when you do not top up the card.


What is a prepaid card? Prepaid card is a card that customers can transfer money, withdraw money, pay bills. Customers using a debit card do not need to open an account and can spend within the amount of money on the card.

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