You don’t need a bank to issue your own payment cards

If you conduct a survey among passersby on the subject of “what do you need to get a plastic payment card?”, the vast majority will answer that it is necessary to open an account at a bank. Not long ago, this answer would have been correct because payment cards were issued only by banks and were attached to the current account. The development of innovative technologies has made adjustments in this area of human life. You will learn in this article why you do not have to open a bank account to get a payment card and who else except banks can issue payment cards.

Principle of payment cards

When it comes to bank debit cards, when you pay for goods and services with them, the merchant at the point of sale or online holds the money, which is not on the card but in a cash pool. The bank provider who issued the card holds it. This money is attached to the bank account.

A more popular and easy option is debit cards that are not linked to a traditional bank account. To pay for goods and services with it, you must initially put money into their account. Issuing cards of this type is quick because there is no need to collect a large package of documents. Since the user himself pre-fills his account with money and only then can use the debit card, there is less need to check his creditworthiness. This also significantly speeds up the process of issuing such cards.

Types of debit cards

The most common and well-known to most users is the traditional debit card. It is used to withdraw cash and pay for goods and services. It has a 16-digit number, an account number, and a sort code. Such cards are linked to a current account. To open one, you should meet many bank conditions because they come with an overdraft.

To use prepaid debit cards, they need to be topped up beforehand. You can do it in different ways including a transfer from your current bank account. You can use those cards to get your salary or other income. You can open such cards in a bank. But bank employees will always persuade you to open an account together with the card, even though it is not a necessary condition for a prepaid card to work properly. This is done for the bank’s selfish purposes because the prepaid card itself, unlike the account, does not bring the bank financial profit.

Some retail stores and retailers issue their own credit and debit cards as part of a loyalty program. Using it, the customer can receive credit and discounts when buying goods in a particular outlet or chain of stores.

Electronic debit cards

Debit cards can have no physical form but only electronic form. You can set them up on your phone and make contactless payments for goods using such cards. It is very convenient to go shopping with such cards, as there is no need to carry a physical wallet.

A relatively new product is virtual single-use cards, which are used online or over the phone. They are issued specifically for a single purchase. Such cards allow for secure transactions without the risk of theft of funds or information.

Debit cards from Wallaester

Any modern company can afford to issue its own debit cards. They can have a branded appearance and individual functionality that meets international security standards. Own payment cards will increase brand recognition and customer loyalty.

Wallester company offers its clients a convenient platform to manage their own card projects. With its help, it is possible to issue virtual and physical cards. They can be integrated with mobile payment systems. The use of tokenization technology significantly increases transaction security and speed. The card program is customized for a particular business model, so the solution from Wallester is suitable for any industry and area of human activity.

Wallester customers can issue their own branded Visa cards, and choose the design, haptics, and other branding elements. They can be customized with different verification methods and all the basic attributes of the card. It can be either reusable or disposable. If the card is stolen, lost, or damaged, there is no need to contact the bank, the client himself can activate, block, replace it or set limits. Thus, with Wallester there is no need to open a bank account to get a payment card and use a range of banking functions.