Prepaid Versus BACS – Why is everyone making the switch?

Date: April 9, 2018
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On 10th January 2017, the European Commission published the proposed text for the new e-Privacy Regulation which, if adopted, will replace the current e-Privacy Directive and will establish, together with the General Data Protection Regulation (GDPR) launching in May 2018, a new privacy legal framework for electronic communications.

These regulation texts are of course long, complicated, and downright confusing at times. So, what does it really mean for the world of reward, incentive and prize payments?

 

Regulation confusion

The new e-Privacy Regulation proposal includes amended rules for the storage and erasure of electronic communication content, while the new GDPR brings more data into regulated perimeters and introduces mandatory data protection impact assessments. In addition, data subjects now have the right to be forgotten and there are new requirements for data portability.

Confused yet? We could keep listing the myriad of changes and additions to the regulations, but we think we’ve made our point – it’s a mind field for anyone wanting to collect, store and utilise data… however honour their intentions may be!

It’s no surprise then that companies who historically process a large number of internal and external payments by BACS – whether they’re for staff rewards or consumer promotions – are finding themselves lost, and even scared, when collecting recipients personal and bank details.

Moving forwards, not backwards

Luckily, another payment method is available!

Prepaid doesn’t just solve the issues surrounding e-Privacy Regulation, it’s virtual and physical cards offer a simple, effective & cost efficient alternative – more suited to the 21st Century customer.

Benefits include:

  • ADMIN AND DATA PROTECTION – No collection or management of customers bank account details and the issue around incorrect details. Not all customers will want to give their bank details – are you then discounting them from promotions or having to include a second payment option? And with the new GDPR coming into effect from May 2018, do you really want to take on additional burden?
  • INCLUSIVE – There are thought to be over 1.5million people in the UK alone that do not even have a bank account. Everyone can have a prepaid card.
  • BRAND AWARENESS & LOYALTY – by paying into someone’s bank account the reward is lost amongst day to day transactions. On a branded card the customer remembers when they make a purchase, that the money came from you – the brand. This in turn creates repeat behaviours and endorses the loyalty factor.
  • BELIEVABILITY – Delivered through visible branded cards, the public will see that the promotion is real. People do win or get rewarded and that in turn greats positive PR to recycle for PR and social media purposes. Branded cards are up front and take centre stage in the process, whereas BACS happens behind the scenes.
  • LEGITIMACY – At a time where people are so much warier of sharing their personal information, our proposition is endorsed by Mastercard, ensuring your brand is associated legitimacy to the promotion.
  • REPORTING – Detailed reporting and analysis of when & where your customers used their cards providing you with greater depth & awareness about your customers behaviours, in turn allowing you to further engage with them in a way they can relate to. This is not possible with BACS payments as they are simply lost into the customers bank account.

So perhaps it is time to stop fretting and let someone else take on the responsibility for you, while providing cutting-edge solutions at the same time.