What is an anonymous prepaid card?

What is an anonymous prepaid card?

Anonymous prepaid cards are a type of payment card that does not require personal information when issued. Unlike credit or debit cards, anonymous prepaid cards are not directly linked to the user's bank account. Users simply load a certain amount of money onto the card before use and can spend within that amount. Because they do not require identifying information, these cards are anonymous, meaning they are not tied to the user's identity.

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

Prepaid cards include: identified prepaid cards (containing the cardholder's identifying information) and anonymous prepaid cards (without the cardholder's identifying information).

Therefore, an anonymous prepaid card is a type of prepaid card that does not contain any identifying information about the cardholder.

Illustration photo: HDBank .

How it works

Anonymous prepaid cards operate on the principle of "load first, spend later." This means users must load a certain amount of money onto the card before they can use it for payments. This money is stored on the card and gradually decreases each time the user makes a transaction.

1. Topping up the card: Users can top up their anonymous prepaid cards through channels such as banks, card issuer transaction points, or online services.

2. Using the card for payment: Anonymous prepaid cards can be used to pay at stores, supermarkets, restaurants, or for online shopping, similar to credit or debit cards.

3. Check balance: Users can check their remaining card balance through the card issuer's service channels.

Benefit

Anonymous prepaid cards offer many practical benefits to users, including:

Anonymous prepaid cards allow users to make payments quickly and conveniently without needing to carry cash. This is especially useful when traveling or participating in leisure activities.

With an anonymous prepaid card, you can only spend within the amount of money loaded onto the card. This makes it easier to control and manage your personal finances, avoiding the risk of overspending.

Because they don't require personal information, anonymous prepaid cards minimize the risk of personal information loss and financial fraud. If you lose your card, you only lose the remaining balance on the card, without affecting your bank account or personal information.

Anonymous prepaid cards are suitable for a wide range of people, from young people and those without bank accounts to those who want to keep their identity private when conducting financial transactions.

Anonymous prepaid cards can be used for a variety of purposes such as shopping, paying bills, topping up mobile phone credit, and many other online transactions.

Limit

Although anonymous prepaid cards offer many benefits, there are also some limitations that users need to be aware of:

- Some anonymous prepaid cards have a maximum top-up limit, which can be inconvenient when you need to make large purchases.

Unlike credit cards, anonymous prepaid cards typically do not come with promotional programs, cashback, or reward points.

- Some anonymous prepaid cards may come with service fees such as top-up fees, withdrawal fees, or card maintenance fees. Users should check these carefully before using them.

In summary, anonymous prepaid cards are a convenient and secure payment tool, suitable for a wide range of users and purposes. They help you control spending, protect personal information, and conduct transactions easily. However, before deciding to use one, you should carefully research the terms, limitations, and service fees to ensure that the anonymous prepaid card meets your needs.

Compiled by Cong Hieu

Source: https://vtcnews.vn/the-tra-truoc-vo-danh-la-gi-ar906067.html