Prepaid cards in Australia work similarly to debit or credit cards, but with key differences that make them ideal for controlled spending, gifting, and incentive programs. Here’s a detailed breakdown of how they work:
What Is a Prepaid Card?
A prepaid card is a payment card that has a fixed amount of money loaded onto it before you can use it. You can only spend the available balance — no credit or overdraft is involved.
Prepaid cards in Australia are typically either:
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Single-load gift cards (e.g. Visa or EFTPOS gift cards)
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Reloadable prepaid cards (e.g. for travel, wages, loyalty rewards)
- Physical or Digital cards (digital prepaid cards are usually stored in mobile wallets)
How Prepaid Cards Work
1. Card Issuance
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Cards are issued by licensed providers (e.g. iGoDirect, banks).
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Can be physical (plastic) or virtual/digital.
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Typically branded by a network (Visa, Mastercard, EFTPOS).
2. Loading Funds
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Single-use/gift cards: loaded once with a fixed amount.
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Reloadable cards: can be topped up via:
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Bank transfer
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BPAY
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Linked credit/debit card
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Employer/partner integrations. For example, True Rewards allow businesses to top up cards for their cardholders via a float.
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3. Usage
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Spend online, in-store, or over the phone — just like a debit card.
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Some cards (such as EFTPOS) are limited to Australian merchants; while Visa cards typically support international use.
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Digital Visa prepaid cards must be added to digital wallets (Apple Pay, Google Pay) before usage.
4. Tracking & Management
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Many cards, such as True Rewards Digital Visa cards come with a portal to:
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Check balance
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View transactions
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Manage reloads
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Freeze or cancel the card
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Use Cases in Australia
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Gifting: Visa/Mastercard or EFTPOS gift cards
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Corporate incentives: employee and trade customer rewards and incentives
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Corporate expense management: travel expenses, petty cash management
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Travel: Multi-currency prepaid travel cards (e.g. Wise)
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Loyalty & rewards programs: Reloadable cards linked to user accounts
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Disbursements: Payouts for research participants, competition winners, customer rebates etc.
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Youth/budgeting: Tools for teens or those managing fixed spending
Advantages
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Safer than carrying cash
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Widely accepted payment option
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Easy to distribute at scale (digitally or physically)
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Great for controlled spend and one-off payments
Things to Watch For
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Some cards have fees (e.g., issuance, inactivity, reload)
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Not all cards are reloadable
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Cards typically have an expiry date (check physical card or card portal)
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Digital prepaid cards may not work in-store unless added to a mobile wallet
