Frequently Asked Questions
Frequently Asked Questions
Transact Network Frequently Asked Questions
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1. What is a prepaid card?
A prepaid MasterCard works like a Mastercard credit card with the difference that the cardholders can spend only what they have pre-funded onto the card. It is used exactly the same way as a credit card to purchase products both online and at retail locations or withdraw cash from ATMs. Prepaid, debit and credit cards carrying the MasterCard brand can be used anywhere that MasterCard is accepted.
If you would like to launch a new Prepaid Card usable at all MasterCard locations marketed either to consumers or to corporations then please contact a member of our sales team on enquiries@transactnetwork.gi or alternatively you can fill in our program questionnaire and a customer representative will contact you.
Remember that Transact Network as a principal MasterCard member and full service provider will be able to "fast track" your program to market.
If you would like to launch a new Prepaid Card usable at all MasterCard locations marketed either to consumers or to corporations then please contact a member of our sales team on enquiries@transactnetwork.gi or alternatively you can fill in our program questionnaire and a customer representative will contact you.
Remember that Transact Network as a principal MasterCard member and full service provider will be able to "fast track" your program to market.
2. How does a prepaid card work?
From the cardholders point of view the experience of using a prepaid card online or in a physical store is the same as a credit card.
The back end function of funding (loading) the cards and reconciliation and the fee structure process is essentially different.
The Prepaid card can be funded in a number of different ways either in real time (debit card, credit card, card to card, e-voucher systems, online banking- eg giropay in Germany) or non real time (bank transfers, bacs, swift transfer).
Once the prepaid funds have arrived in the cardholders account the funds are allocated to the card for immediate spending.
The cardholder, program manager and the processor are now able to manage the flow of all funds online and in real time.
The Prepaid card can be used for purchases or ATM withdrawals by the cardholder at any location where MasterCard is accepted.
The back end function of funding (loading) the cards and reconciliation and the fee structure process is essentially different.
The Prepaid card can be funded in a number of different ways either in real time (debit card, credit card, card to card, e-voucher systems, online banking- eg giropay in Germany) or non real time (bank transfers, bacs, swift transfer).
Once the prepaid funds have arrived in the cardholders account the funds are allocated to the card for immediate spending.
The cardholder, program manager and the processor are now able to manage the flow of all funds online and in real time.
The Prepaid card can be used for purchases or ATM withdrawals by the cardholder at any location where MasterCard is accepted.
3. What is a BIN?
A Bank Identification Number (BIN) is the first six digits of the number of various financial cards. These digits identify which network the card belongs to as well as which organization issued it. Cards participating in the BIN system include:credit cards, debit cards, prepaid cards, stored value cards and electronic benefit transfer cards. A BIN Sponsor is a financial institution issuing a card program on behalf of another financial institution or program manager.
4. What is a prepaid card program?
There are two broad types of prepaid card programs based on the way that the card is funded or loaded.
For business use, such as expenses, corporate benefits and incentives, the accounting and control process to monitor spending can be simplified. The need for cash floats, advances and petty cash can be reduced or in some cases eliminated completely.
For businesses with a dispersed workforce or online affiliates a prepaid card program can help cut the cost of processing payroll and commission. By providing employees with a prepaid card, wages/commissions can be transferred with immediate effect removing the costs associated with processing cheques and bank transfers. This is a particularly effective solution for employees without a bank account or in remote locations. A secondary card can also be issued as an added benefit to help in transfer of funds to remote secondary card holders.
There are numerous and varied ways in which a consumer can benefit from a network branded (MasterCard branded) prepaid card.
There are some examples on our site of the types of consumer funded programs such as travel-foreign exchange cards, gift cards, general spend cards and virtual online cards.
A prepaid card can also be used like a online e-money account as the funds on the card can be transferred to a secure e-account directly linked to the card and managed like a normal bank account with all the added features.
Another distinct benefit is the instantaneous access to funds particularly with an online virtual prepaid card which is issued instantly and can be used for purchases on the internet as soon as they are electronically available and funded.
- Consumer Funded - a private individual funds the card or
- Corporate Funded - where a company or organization is responsible for funding the card.
For business use, such as expenses, corporate benefits and incentives, the accounting and control process to monitor spending can be simplified. The need for cash floats, advances and petty cash can be reduced or in some cases eliminated completely.
For businesses with a dispersed workforce or online affiliates a prepaid card program can help cut the cost of processing payroll and commission. By providing employees with a prepaid card, wages/commissions can be transferred with immediate effect removing the costs associated with processing cheques and bank transfers. This is a particularly effective solution for employees without a bank account or in remote locations. A secondary card can also be issued as an added benefit to help in transfer of funds to remote secondary card holders.
There are numerous and varied ways in which a consumer can benefit from a network branded (MasterCard branded) prepaid card.
There are some examples on our site of the types of consumer funded programs such as travel-foreign exchange cards, gift cards, general spend cards and virtual online cards.
A prepaid card can also be used like a online e-money account as the funds on the card can be transferred to a secure e-account directly linked to the card and managed like a normal bank account with all the added features.
Another distinct benefit is the instantaneous access to funds particularly with an online virtual prepaid card which is issued instantly and can be used for purchases on the internet as soon as they are electronically available and funded.
