Payset prespective
May 30, 2022

Can Prepaid Cards Expire?

Most payment cards and credit cards have an expiration date, and prepaid cards are no exception. Here’s what you should know if you have a prepaid card.

So, can prepaid cards expire?

 

Yes, prepaid cards can expire. The expiration date is typically on the front of the card, below the 16-digit card number, or on the back of the card. If your prepaid card is tied to an account with a balance, you won’t lose the money in your account, but will need to order a replacement card.

Keep reading for a complete guide to why prepaid cards expire, as well as what to do if your prepaid card has expired.

Why do prepaid cards expire?

 

Prepaid cards expire so that card issuers can keep their clients up to date. Prepaid card expiration also allows customers to have a more secure experience. 

Here are the three main reasons that prepaid cards use expiration dates.

Reason 1: Cardholder Verification

When you make a purchase online or over the phone, you will often be asked to enter your card’s expiration date. 

Since expiration dates are rarely stored anywhere except on the actual card itself, these dates act as an additional piece of data to ensure the proper cardholder is making the purchase.

Reason 2: Fixing Wear and Tear

Payment cards have features such as EMV chips and magnetic stripes that wear down after use. 

Plus, card plastic itself may become damaged over time. By having users replace their card after a certain amount of time, card issuers can ensure that all cards in circulation are in good condition.

 

Reason 3: Keeping Customers Up to Date

By having users replace their card on a regular basis, card issuers can give users a chance to re-evaluate the terms and services of their card. 

They can also send out cards with updated logos and designs and make other changes to their card’s features on a regular basis.

What Happens When A Prepaid Card Expires?

 

If your card expires, you’ll need to replace it. Here’s what to expect when your card expires:

Point 1: You’ll Receive a Notification

Generally, card companies will send you a notice 30-60 days before your card expires. However, you can request a new card sooner than the expiration date if you’d like.

Point 2: Your Card Will Be Frozen

After the expiration date, if you have failed to renew your card, you will not be able to access funds via the card. However, you may be able to transfer funds via a web account (if your account offers that feature). 

You will be able to begin spending money using your prepaid card as soon as you receive a new one.

Point 3: Your Funds May or May Not Expire

If your prepaid card balance is tied to an account, your funds will generally remain available even after your card is frozen. 

Prepaid cards are not the same as gift cards, which may eliminate your balance after a period of inactivity. Your card’s terms and conditions will explain this in more detail.

What Should You Do If Your Prepaid Card Expires?

 

If your prepaid card expires, you can simply contact the company that issues your card and ask them to send a new card to you. Here’s how to do it:

Step 1: Contact Your Card Issuer

Contact your card issuer and ask for a replacement card. In order to avoid phishing attempts, you should refer to the contact details and phone number that originally came with your card.

Step 2: Confirm Your Card Plan

Before you agree to a new replacement card, consider the terms of your card plan. 

Generally, card companies cannot forcibly change the terms of service, but there may be better alternatives—such as better fees or reward plans—for you to take advantage of when you order a new card.

 

Instead of asking for a new card after the expiration date, you can choose to close your account. In this case, the card issuer will typically send you a check with your account balance.

Step 3: Activate Your New Card

Your card will soon be delivered by mail. You will then have to sign and activate the card, either by phone or online. Be sure to cut up and throw away your old prepaid card.

Step 4: Update Online Payment Information

If you have automatically scheduled any payments online (such as electricity bills and phone bills), you will need to update those online accounts to reflect the expiry date of your new card. 

If your web browser stores your card information, be sure to update that data as well.

Payset’s Prepaid Card Solution

 

Payset’s prepaid cards offer many features, from the ability to fund your balance with a variety of local currencies to plans targeted at business and enterprise users.

 

When you sign up for our prepaid card, you’ll get access to both a plastic card and a mobile virtual card. Signing up is simple: just click on the “Get Started” button below.

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Frequently asked questions

What is a multi-currency account/virtual IBAN?

A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.

You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.

A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.

  • Funds can be deposited and withdrawn from the account for a small fee.
  • Account holders can send and receive money with other Payset users for free.
  • Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS. 
  • Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
  • We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days

Are there limits on the amount of money I can send and receive?

No, there are no transaction limits on Payset multi-currency accounts.

However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.

How is Payset regulated?

Payset allows you to receive payments in 34 currencies. You can send payments from your account in 38 currencies. For more details, check our payment guide.

How do I send money from my account?

Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.

Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.

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