In case of MasterCard or Visa, the cards are issued by a bank in collaboration with a cards association, or in the case of Diners and American Express, the cards are directly issued from a cards association. The name of the credit card evolved from the fact that often a credit is offered by the card issuer to the cardholder.
Meanwhile there are also prepaid credit cards which means payments are not credit-based, but carried out on prepaid funds. The outstanding balance is paid from previously paid deposit, thus it is about prepaid cards. Strictly speaking a prepaid credit card is not a credit card in the proper sense.
There is no embossing added to these prepaid credit cards and they can only be used at those credit acceptance points tied online. Thereby overdraft shall be prevented. Moreover the card is endorsed with the notation “electronic use only”.
Prepaid credit cards enjoy globally increasing popularity: On the one hand these cards can be issued to persons who are not creditworthy, e.g. to minors or to those who have a negative entry on their credit report. Therefore prepaid credit cards are ideal for minors, e.g. as secure travel funds, as they are globally accepted, but at the same time the payment and loss risk is limited. On the other hand, online payments can be done anonymized. In the meantime prepaid cards are also issued as gift cards- so called picture cards and therefore offer the presentee a personal gift, but at the same time the maximum freedom to choose a gift. By now 3 out of 4 presentees in the USA get a prepaid gift card instead of cash.
All About Cards- the tools make the difference: All our card productions are ISO 9001:2000, ISO 14001:2004 as well as VISA and MASTERCARD certificated. We are certificated partner of renowned and market-leading manufacturers in the field of card printers, software and card systems, and not only know the tools, but also know their applications for customer loyalty, safety or identification.
You want to issue proprietary credit cards or prepaid cards? We are pleased to inform you! Ask us for the correct cards that meet the needs and requirements of your scope.
All About Cards – competence in cards!
