Open-loop prepaid solutions provide consumers, businesses and governments with the efficiency, security, and flexibility of electronic payments without involving credit. They are an excellent tool to manage a budget because a set amount of funds are loaded in advance of the purchase. Consumers can exert control over their spending and avoid interest charges and overdraft fees.
Funds are universally acceptable.
Consumers can make purchases anywhere in the world the payment solutions are 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.
Payment solutions 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.
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.
Open-loop prepaid cards open the door to economic participation for “unbanked” or “underbanked” Canadians without a banking or credit relationship.
Payment solutions provide good value.
Many open-loop prepaid solutions programs provide several ways for cardholders to access cash or preform transactions without incurring fees.
Consumers are protected.
Open-loop prepaid solutions 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 payment network.
Businesses can easily pay employees their expenses or commission payments in a faster and more cost-effective manner.
Funds can be electronically transferred and distributed within seconds to the intended recipients without the hassle and delays of mailing cheques.
The hassle and potential for fraud and loss that come with cheques are greatly reduced.
Open-loop prepaid allowed for payments to be made to “underbanked” Canadians who do not have a bank account or prefer to not use direct deposit.
Flexible payment tools.
Businesses can use the solution to pay wages, commissions, expenses, reimbursement, contractor payments, and more through one tool.
Streamlined expense tracking gives businesses more control.
The prepaid solutions are easier to track than paper cheques with immediate expense reconciliation.