One of the most popular rewards for promotional marketers is Prepaid Cards. These cards function just like any debit card that consumers use every day, but include some key benefits for the program sponsor that make them an attractive promotional reward.
Why do marketers turn to Prepaid Cards for promotional marketing programs?
- Ease of Use: Prepaid Cards can be used anywhere that VISA or MasterCard are accepted. This is an advantage over gift cards that typically can only be used at a single retailer. Consumers across income levels and demographics know how to use them.
- Security: As a payment vehicle, Prepaid Cards are tied to individual recipients and can be easily replaced, unlike other payment methods. This allows for more security for the recipients and program sponsors.
- Cost: Prepaid Cards used for promotional purposes can often be purchased below the actual value of the card. This can allow marketers to save significantly on the promotional cost of the rewards.
- Legal and accounting issues: Using Prepaid Cards for promotions removes many of the liabilities associated with other reward types. For example, program managers take on unclaimed property responsibilities associated with checks. Additionally, most companies treat prepaid cards as a direct cost associated with a promotion without additional financial liabilities.
Determining the right reward to use can be a daunting task for many marketers, but Prepaid Cards should be at the top of the list for promotional programs operating at scale.
Kevin Palmstein is a Vice President of Product, Alliances and Marketing at YA. He works with clients every day to design custom rewards programs.