Prepay cards are a simple and innovative method of moving away from cash and cheque payments to customers, some of which may not have bank accounts, for making social and benefit payments.

There are basically two ways the cards can be used, single use, this where an amount of money is loaded onto the card and once used the card is no longer valid. The second method is a multi use card; this card can be loaded on a weekly, monthly basis with either the same amount or different amounts each time.

The cards are accepted anywhere credit cards can be used and control, if required, can be placed onto the cards to restrict where they can be used. It is also possible to see where the cards are being used by using card management software. Even though these cards appear to be a “credit card” there is no credit involved and the recipient of the card can only spend up to the value that has been loaded onto the card and the cards are available for cash withdrawals.

 The options for use for Local Authorities are numerous such as, benefit payments, school clothing allowances, grant payments, asylum seeker payments and other social payments. By making these payments in this way it is potentially a much cheaper option than cash and cheque payments. It makes cash readily available to customers who may have no access to a bank account or may need an emergency payment.

Another option for prepay cards internally is for travel. If you have employees that may need to travel either within the country or abroad would be issue then a preloaded card to cover their hotel and incidental expenses. This is an easier option than the employee spending their own money than put in expense claims and the cards can be topped up each time the employee travels.