Funds are universally acceptable. Consumers can make purchases anywhere in the world the card is accepted, including online and over the phone.
Funds are immediately available. There is no waiting for a cheque to arrive in the mail or clear the bank, and funds are available as soon as they are deposited by the consumer, business or government.
Cards are convenient and easy to use. They function in a similar fashion to credit and debit cards at the point-of-sale and offer the same fraud and loss protections.
Budgeting Tool. They are an excellent tool to manage a budget because a set amount of funds are loaded in advance of the purchase.
Consumers can avoid costly overdraft fees and interest charges. A set amount of funds are loaded in advance of a purchase, so consumers can control their budget and avoid interest charges and overdraft fees.
Financial Inclusion. Open-loop prepaid cards open the door to economic participation for “unbanked” or “underbanked” Canadians without a banking or credit relationship.
Cards provide good value. Many open-loop prepaid card programs provide several ways for cardholders to access cash or perform transactions without incurring fees.
Consumers are protected. Open-loop prepaid cards are issued by financial institutions and prepaid issuers comply with all applicable laws and regulations with respect to compliance and consumer protections. Consumers are protected from fraud and loss in accordance with the Zero Liability protections of the card network.
Cost savings. Businesses can easily pay employees their expenses or commission payments in a faster and more cost-effective manner.
Improved efficiencies. Funds can be electronically transferred and distributed within seconds to the intended recipients without the hassle and delays of mailing cheques.
Streamlined expense tracking giving businesses more control. The hassle and potential for fraud and loss that come with cheques is greatly reduced.
Electronic payments for everyone. Open-loop prepaid allows for payments to be made to “underbanked” Canadians who do not have a bank account or prefer not to use direct deposit.
Flexible payment tool. Businesses can use the card to pay wages, commissions, expenses reimbursement, contractor payments and more through one tool.
Streamlined expense tracking gives businesses more control. The cards are easier to track than paper cheques with immediate expense reconciliation.