What is a prepaid identity card?

A prepaid card is a type of payment card issued by banks or financial institutions. Unlike credit or debit cards, prepaid cards are not directly linked to your bank account. Instead, you load a certain amount of money onto the card before using it. The card is called "identified" because when it is issued, the user's personal information is recorded and linked to the card, ensuring security and authenticity.

Specifically, according to current regulations, in Clause 4, Article 3 of Circular 18/2024/TT-NHNN, Section 4 specifically stipulates: A prepaid card is a card that allows the cardholder to make card transactions within the value of money loaded into the card corresponding to the amount prepaid to the card issuer.

Prepaid cards include: identified prepaid cards (with cardholder identification information) and anonymous prepaid cards (without cardholder identification information).

Thus, an identified prepaid card is a type of prepaid card that contains information identifying the cardholder.

Benefits of prepaid identity cards

One of the biggest advantages of a prepaid card is that it helps you control your spending. You can only spend within the amount of money loaded onto the card, avoiding the risk of debt like when using a credit card.

Since your personal information is identified and linked to the card, the level of security when using an identified prepaid card is higher than that of an anonymous card. In case of loss of the card, you can easily request to block the card and protect the remaining funds.

Prepaid identification cards can be used to pay at stores, supermarkets, restaurants and even online shopping. You don't need to carry cash, reducing the risk of loss and making it more convenient to manage daily expenses.

For those who do not have or do not want to open a bank account, a prepaid card is a good alternative. You just need to load money onto the card and use it, without having to link it to a bank account.

Prepaid cards are also an ideal choice as gifts. You can load some money onto the card and give it to your relatives and friends. The recipient can use the card to make personal purchases.

Prepaid cards are a convenient and secure payment tool that helps you control your spending and reduce the risk of losing cash. With many outstanding advantages, prepaid cards are gradually becoming the preferred choice of many modern consumers.

Cong Hieu (synthesis)

Source: https://vtcnews.vn/the-tra-truoc-dinh-danh-la-gi-ar906051.html