Privacy Benefits of Using a Prepaid Card For Online Shopping
In today’s digital age, you can’t be too careful with your personal information. According to the Kroll Global Fraud Report, 51 percent of companies describe themselves as highly or moderately vulnerable to information theft. The value of online fraud is predicted to reach $25.6 billion by 2020, according to the Juniper Research. As a result of the dangers of bank fraud and online identity theft, many customers are afraid to make online purchases with their debit/credit card. Many others simply don’t trust banks or financial institutions. For these reasons, prepaid cards can be very appealing to consumers looking for a secure way to shop, especially online.
In 2015, credit card fraud accounted for 71 percent of all fraud losses in the United States. On the other hand, prepaid card fraud only counted for 4 percent of all financial fraud. According to the “How Canadians Pay Today” survey from the CPPO, 66 percent of consumers are concerned about the security of their credit and debit cards when making online purchases, however only 28 percent of people had similar concerns about prepaid cards. Consumers and companies have been turning to prepaid cards in droves because of enhanced security features that give them an edge over traditional banking methods. But what are these features?
Prepaid cards work like regular credit/debit cards, but with one big difference–they are not linked to a bank account, and they don’t require credit/debt to use. Prepaid cards offer the same PIN/signature protection of credit/debit cards. This offers a huge advantage as, even if your card number is stolen, the thief can only gain access to the amount of money loaded on the card. Since these cards are not connected to a bank or credit account, it protects you from potentially having to deal with thousands of dollars in fraudulent charges on a credit card, which could put you in debt and irrevocably harm your credit, or from possibly losing your savings.
A prepaid card decreases the chances of fraud, theft, and loss. Like most credit cards, prepaid cards offer zero liability protection via the payment network on the card, such as MasterCard® or Visa®. If you report the loss or theft of a registered card to the issuer, your funds will be protected/returned and you will be given a new card. Prepaid solutions also have a vigorous back-end reporting system. All transactions are monitored in real-time, providing transparency, reducing the possibility of fraudulent activities, and allowing for quick action to be taken in case of suspicious transactions.
For the avid online shopper, there is also the option of using a virtual prepaid card. Virtual prepaid cards cannot be stolen or lost because they are not physical cards, and the information is stored online with access via a special, protected launch window. Virtual cards can be edited or deleted after the card has been used, and companies can create multiple cards for different purposes and merchants.
There is no credit check required to get a prepaid card. In order to register a prepaid card account and make online purchases, a user must submit their name, phone number, and address, but the user’s other private information–such as a SSN or SIN–is not required. As a result, your important personal details are not at risk if you have a lost or stolen card, and someone cannot take your information and create a new account or lines of credit. This makes it far less likely that any financial crimes a thief commits against your prepaid card will have long-term effects. There are also no statements or paper bills for a thief to get your information from, and there is less personal information to put online when making purchases, making it a more secure way to make transactions.
Shopping online offers almost limitless variety, options, and deals, and it can definitely save you time and money, but the risks involved with using a credit card can turn a fun experience into an ugly one. Hackers, thieves, and criminals are getting smarter all the time, and even the most secure websites are being targeted, but you can outsmart them and avoid the risks by using a prepaid card.
Interested in shopping securely online? Contact us today to find out how you can get a customized virtual MasterCard of Visa prepaid program.
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