Transaction Trends

Did Santa leave you a crisp new gift card under the tree? If what you have in your hands is a network-branded (think Visa, MasterCard, American Express) prepaid card, get ready for a shopping spree. And you won’t be alone: a recent survey from the National Retail Federation (NRF) expects gift card sales to reach $27.5 billion this year.

If YOU are still stuck on what to get a special someone, a prepaid card is the perfect way to make everyone happy. According to NRF, 61 percent of consumers would prefer you get them a gift card above all else. So, whether you’re getting or giving, here is what you need to know.

Prepaid Cards Can Be Used Anywhere that Accepts Credit Cards

Prepaid gift cards that are “open loop” – meaning they have a card network brand like Visa, MasterCard, or American Express on the front of the card — can be spent where debit and credit cards are accepted – including on-line (but you may have to register your card with some basic information before shopping online with your gift card.) Check your card’s terms and conditions to discover everything your card can do. 

Prepaid Cards are Safer than Cash

Prepaid gift cards offer a wide range of benefits that, traditionally, you could only get through a brick-and-mortar bank. If you register your card with the issuing bank, gift cards can offer the same fraud and loss protections as a credit or debit card. Some prepaid cards allow you to set up free text-message notifications for suspicious activities so that you can receive alerts on your phone. These layers of compliance and fraud protection make prepaid gift cards a much safer alternative to carrying wads of cash around in your wallet.

Prepaid Cards Are Mobile-friendly
In some cases, consumers can access prepaid gift products through their mobile phones. For instance, your mobile wallet may support gift cards from certain issuing banks – you can check the list of participating banks (as well as any restrictions) for Android Pay, Apple Pay, and Samsung Pay. If your mobile wallet and gift card are compatible, then you’re good to go. Simply load the card onto your mobile wallet. Paying in-store is as simple as a tap, with all the security and convenience that mobile wallets offer. No need to hunt around for your wallet as you’re dashing out the door to beat the holiday traffic – if you’ve got your phone, you’re covered!

Reloadable Cards: The Gift that Keeps on Giving

If someone’s giving you the gift of a general purpose reloadable prepaid card, you can continue to use it long after the initial amount has been spent. You can add funds on-line, via mobile, or by calling a 1-800 number. Some cards offer a convenient “swipe load” option, where the user simply presents cash at a participating retailer to add funds on the spot, so you can keep the convenience of a gift card no matter the time of year.