Ticon UK Ltd

A prepaid card is a pre-funded card which does not offer a credit or overdraft facility and is not linked to a standard bank account. Money allocated to the card can be used anywhere that accepts cards, or withdrawn as cash from an ATM.

There are a wide number of uses for prepaid cards in Local Government, including:

• Individual budgets
• Leaving care payments
• No recourse / asylum seeker payments
• Housing benefits
• Grants to third parties
• Travel and expenses
• Petty cash and imprest accounts
• Youth activity projects
• School meals and uniforms

How do clients benefit?
Clients carrying prepaid cards will experience a range of benefits.

• Personal safety – Cards eliminate the need to carry cash. Lost or stolen cards can be cancelled without losing funds.
• Choice – Cardholders can make on-line payments, telephone payments and point of sale payments as well as being used at ATMs.
• Financial awareness – Cardholders gain a better understanding of how to manage their money.
• Social inclusion – Residents who are ineligible for bank accounts can still use prepaid cards, making them part of the electronic economy.

How do Councils benefit?
Councils issuing prepaid cards will get more control and less effort.

• Efficiency – Prepaid cards can be 70% cheaper to administer than cash and 50% cheaper than running a bank account.
• Reduction in risk – Councils will need to store and move less cash. Council staff are less likely to be exposed to the threat of robbery or violent crime.
• Better cash management – Unspent funds can be recouped automatically or manually.
• Better information – Depending on the type of scheme, information on the activities of cardholders
  can be made available for analysis.