What are some types of prepaid cards?
A prepaid card can be an open-loop, or closed-loop prepaid card. There can also be reloadable, or non-reloadable prepaid cards, and some specialty cards, such as payroll cards or college ID cards.
An open-loop prepaid card is a card with a network logo on it. Examples of networks are Visa, MasterCard, American Express, and Discover. These cards can be used at any location that accepts that brand. Most prepaid cards have a network logo on them.
A closed-loop prepaid card is a card you can only use at certain locations. For example, a closed loop card might be good only at a specific store or group of stores, or on your public transportation system. Most closed loop cards do not have a network logo on them.
A reloadable prepaid card is a card you can add more money to. This type of card is sometimes called a General Purpose Reloadable Card, or GPR Card. Some cards start out as non-reloadable, but can be reloaded once you complete a registration process. Some prepaid cards are “non-reloadable,” meaning you can’t add more money to them.
A payroll card is a prepaid card you get from your employer that you receive your paycheck on.
A government benefit card is a prepaid card used by a government agency to pay certain government benefits, such as unemployment insurance.
Some college ID cards are also prepaid cards. Some colleges offer a “closed-loop” card, which you can only use to pay for things on campus. Other schools offer an “open-loop” card, which you can use at any retail location that accepts that network brand.