Prepaid card – what do you need to know about it?

Prepaid card – how does it differ from the payment card?


Almost all of us are holders of a payment card, assumed to be assigned to a personal or credit account in our bank. The operation of a prepaid card is very simple – when paying in a shop or online store, or when withdrawing funds from an ATM, the money in the appropriate amount is automatically charged from our account. If we do not have sufficient funds in the account, we cannot process the payment or a debit is created in the account.

We can use the money accumulated on a personal bank account in a number of ways – we will withdraw cash directly at the bank, and we can make transfers at the bank or via the internet, e.g. using the appropriate application. A prepaid card operates a bit differently – to be able to use it we must first top it up. The prepaid card is assigned to the technical account – without plastic, we do not have any access to the money accumulated on it. Each card also has a predefined period of validity, after which unused funds assigned to it are irretrievably lost. Due to the simplicity of operation and great versatility, prepaid cards prove themselves in many circumstances – both private and professional.

Prepaid card for holidays and as a gift

karta przedpłacona

Very often, prepaid cards are used as a gift – instead of a very elegant but still expected cash. Such a gift will be perfect, for example, during a birthday or wedding, when we want to make it easier for loved ones to realize their dreams related to travel, education or equipment of a new apartment. This gift formula is especially popular among aunts, uncles and grandparents on the occasion of eighteen birthday, but also when a gift comes from many people. Convenient prepaid card in an elegant package will look much more attractive than a file of used banknotes in a regular envelope.

Due to the security and convenience of the prepaid card, it is regularly used by  parents whose children go on holiday. Whether it will be organized camps or a camp at the seaside, or even a hitch-hiking around Europe, simple access to money will make shopping easier for a young man. The loss of the card will not result in the loss of all funds accumulated on the bank account, and the ability to quickly top it up, even with a small amount, will allow parents to control holiday expenses.

Prepaid card for business expenses

karta prepaid

Work tools that employers must provide are not just a desk and a computer. Some professional groups, such as flight attendants, in which caring for the right look is one of the official duties, receive additional funds for use on the clothes, makeup or manicure. Depending on the company, you can meet various forms of financing such supplements. Of course, the most popular are discount vouchers to stores with the right assortment, but also pre-paid cards. The value of the card’s payment depends on the employee’s needs and the rules set in the given company, observing the specific dress code . To increase the control of spending the money transferred, the employer may impose that purchases must be settled with a proper invoice.

Business trips, both domestic and foreign, require additional costs for employees. The payment of accommodation and commuting does not have to be the domain of administrative teams – it will be much easier to give it to the interested parties themselves. At the same time, it is difficult to require the employee to credit his employer and pay everything from private money, hoping for a later refund. By providing the employee with a prepaid card, we will enable him or her to manage expenses related to business trips. The employer can also control such costs by requiring an invoice.

Prepaid card as a benefit?

karta mybenefit

A benefit should be a non-financial addition, which will be remembered and will not disappear among the money that employees spend on everyday shopping. Therefore, as benefits at work, tickets to the cinema , theater, playroom or amusement park are better – after which the employees will keep the trace of pleasant experiences and memories.

However, we must bear in mind that some professions require work away or non-standard time. It is difficult then to be able to take advantage of specific attractions proposed by the company. For the employer, matching benefits to the needs of all those working in an organization can also be problematic. In addition, the distributed structure is not conducive to the distribution of benefits and communication. In this situation, the use of a prepaid card may turn out to be the simplest solution.

An alternative to a prepaid card


Prepaid card should not be the only benefit for employees . For its value to be appreciated and spending the assigned funds to be effective, it is worth to limit the use of the card to specific circumstances. The aforementioned business expenses, whether a one-time jubilee award or dedication of a given group of employees to specific cards, are exceptional situations. The main axis of the company’s benefit program is better to make non-wage benefits, related to activity, health, development and interesting spending of free time. Employees can also choose exactly what suits them best. Make an appointment with us for a presentation of the MyBenefit Cafeteria and check what other benefits can be offered to your employees!

It may interest you too: