The Thai economy is moving toward a cashless society, which is driven by the continuous growth of ecommerce and digital platforms. Therefore, online payments have become an integral part of daily life for Thai customers. The choice of payment method has become an important factor, and one popular option is prepaid cards. These cards allow customers to pay for goods and services online without needing a credit card, line of credit, or financial history.

This article explains prepaid cards, including their benefits for both customers and businesses. We also cover how to get started with prepaid cards, general conditions for online payments with prepaid cards, and guidelines for choosing payments solutions that support prepaid cards. This can help businesses provide convenient, flexible, and secure payment experiences that meet business needs and the needs of customers.

Key takeaways

• Prepaid cards are payment cards that customers load with funds in advance. They can use prepaid cards to buy products and services online and offline and can only spend the amount available on the card.
  
• Thai customers use prepaid cards for purchases on digital platforms, streaming services, in-game items and game credits, membership services, cross-border payments, and travel expenses.
  
• Stripe supports automated payments, automated billing, and comprehensive subscription management—covering weekly, monthly, quarterly, and annual cycles—without requiring additional system customization. This enables businesses that use these features to efficiently accept payments via prepaid cards.
  

What is a prepaid card?

Prepaid cards are payment cards that customers load with funds in advance. Then, they use these cards to buy products and services, both online and offline. The customer can only spend up to the remaining balance on the card because prepaid cards don’t have credit limits the way credit cards do. Prepaid cards also differ from debit cards because they don’t deduct money directly from bank accounts. Prepaid cards are suitable for customers who don’t have credit cards or prefer not to link their cards directly to their bank accounts.

Thai customers use prepaid cards for online payments, especially for ecommerce purchases, streaming service fees, in-game item purchases and top-ups, membership services, and cross-border payments. Prepaid cards are also popular for spending while traveling abroad.

Popular prepaid cards in Thailand include Visa Prepaid and Mastercard Prepaid, which can be used to pay on online platforms and with service providers worldwide that support the Visa and Mastercard networks. This allows prepaid cardholders to access digital services and conveniently and securely shop internationally.

Benefits of paying with prepaid cards

There are several benefits of paying with prepaid cards for both customers and businesses.

Benefits for customers

Here are the benefits customers experience when paying with prepaid cards.

Spending control

A prepaid card can only be used for the amount loaded onto it. Therefore, it can help a customer set spending limits in advance.

Prepaid cards are suitable for those who want to control their expenses and plan finances effectively. They are also suitable for parents who want to control their children’s spending by setting appropriate limits. This can help build financial discipline while reducing the risk of overspending.

Access to online shopping

Prepaid cards increase shopping opportunities for customers without credit or debit cards. Prepaid cards allow them to buy products online both domestically and internationally and pay for services on digital platforms. Customers can use prepaid cards to cover expenses, such as ecommerce shopping, streaming services, online games, apps, and subscription-based software.

No credit card or credit check requirements

Customers can use prepaid cards without applying for credit cards or going through credit checks. This makes prepaid cards suitable for students, first-time job seekers, individuals without credit histories, or those who want to keep their online shopping funds separate from their main bank accounts.

Payment security

Using a prepaid card is safer than using cash because it reduces the risk of losing or having money stolen. It also offers greater security for online payments by limiting potential losses in the event of data breaches.

Unlike credit cards, which often have high credit limits, prepaid cards have capped balances. Because they are not directly linked to bank accounts, they also serve as secure alternatives that mitigate the impacts of data thefts or payment fraud.

No debt creation

Paying with a prepaid card doesn’t create debt because customers use money they’ve loaded in advance. They are not borrowing funds, as they do with credit cards. This means no interest charges or late payment fees. Prepaid cards allow customers to pay online with confidence, reduce the risk of overspending, and build better financial discipline.

Benefits for businesses

Here are the benefits of accepting prepaid card payments for businesses.

Expanded customer bases

Accepting prepaid cards makes it easier for businesses to reach customers without credit cards. Prepaid cardholders are often new customers who help drive continuous growth in the digital market by paying for online games or streaming services. Offering prepaid cards as payment options can boost sales, reduce cart abandonment, and expand customer bases.

Increased sales

Supporting prepaid cards increases online payment options. This directly contributes to a simplified payment experience, which can boost successful payment rates, drive sales, and increase revenue long term.

More international customers

Prepaid cards are important tools in the digital age for businesses that sell products and services to international customers. They are also important for businesses that accept payments via global card networks, such as Visa and Mastercard. They facilitate convenient cross-border ecommerce, help expand into international markets, and support growing customer bases.

Fewer risks of default payments

Accepting payments via prepaid cards helps businesses mitigate the risk of payment defaults. These cards require funds to be loaded in advance, which means they limit spending to the available balance. Therefore, they reduce instances of failed payments and credit risk while boosting business owner confidence in the payment process. This solution is suitable for online businesses that want to manage cash flow and minimize outstanding debt.

Enhanced business image

Supporting prepaid card payments shows that the online payment system is ready to meet the needs of modern customers. This can help build trust, create a convenient and secure customer experience, and promote a modern image.

How to use a prepaid card for online payments

For customers to use prepaid cards for online payments in Thailand, they must follow these steps.

Choose a card that suits financial needs

Customers need to choose prepaid cards from reliable banks or service providers that suit their needs. They must consider the following:

• Fees
  
• Ability to control and set spending limits
  
• Available top-up options, such as mobile banking apps, digital wallets, automated teller machines (ATMs), and service counters at convenience stores or department stores
  
• Support for supplementary cards, corporate cards, or the management of multiple prepaid cards from the main account, if applying for cards for employees or family members
  
• Ability to lock or suspend the card via app
  
• Convenient balance and transaction history checks
  
• Functionality for spending abroad or on foreign digital platforms
  

Apply and verify identity

Customers can apply for prepaid cards via providers’ applications, websites, or branches. Generally, a Thai national identification card, phone number, and identity verification details are required.

In cases where the card is for employees or dependents, the applicant must complete the electronic Know Your Customer (e-KYC) process in accordance with applicable laws and the provider’s regulations.

Activate and set up security preferences

After receiving the card, the customer activates it via the app or website or according to the card issuer’s instructions. Next, they set a personal identification number (PIN) and turn on notifications for transactions.

If the system allows setting spending limits, customers can set daily, monthly, or category limits to better manage expenses. This is especially important for cards issued to employees or young shoppers.

Top up the card

Before use, the customer needs to top up the card via a bank account, mobile banking app, service kiosk, or participating business. It is advisable to top up according to the budget the customer plans to use to help manage spending. This can minimize potential losses if card details are used without authorization.

Enter details and verify identity before payment

When purchasing products, paying for services, signing up for a membership, or paying for digital services, the customer needs to enter the 16-digit card number, expiration date, card verification value (CVV) code, and cardholder’s name, if requested by the system. This is similar to paying with a credit or debit card. Some transactions can require verification via a one-time password (OTP) before the payment is completed.

Collect evidence of payment

Once the payment is successful, the system displays the transaction status and sends a payment notification via email or text message. Customers are advised to keep the order number and the e-receipt as proof of payment in case issues arise or a refund is required.

Evaluate and manage use

Customers need to periodically review spending to minimize the risk of exceeding budgets and to improve expense management. This is particularly important when issuing prepaid cards to employees, children, or family members, as spending limits need to be set based on intended use. This could include expenses for travel, work, tuition, or online purchases.

The card must also be immediately suspended if any unusual transactions are detected or if the card is lost.

Examples of prepaid card use

Here are some examples of customers using prepaid cards for domestic and international payments:

• University students use prepaid cards to buy online courses without needing credit cards.
  
• Freelancers top up their prepaid cards to pay for online advertising services.
  
• Parents give prepaid cards to their children for online game purchases to effectively manage and control spending limits.
  
• Employees use prepaid cards to pay for subscriptions or services on foreign platforms, such as Canva Pro, ChatGPT Plus, or various cloud services. Employees can top up cards according to allocated budgets.
  
• Thai tourists use prepaid cards to pay for meals, hotels, train tickets, and miscellaneous travel expenses abroad without carrying large amounts of cash.
  
• Recent graduates add money to prepaid cards to set monthly budgets for online shopping on sites such as Shopee, Lazada, or international websites. This can help prevent overspending.
  

General terms for online payments with prepaid cards

The terms of online payments with prepaid cards can vary depending on the bank or service provider. Below, we discuss some key terms and conditions cardholders need to consider.

Sufficient remaining balances

Before making an online payment, the prepaid card must have a sufficient balance to cover the price of the products, taxes, and fees. If the balance is insufficient, the system might automatically decline the transaction.

Fees

Using a prepaid card might incur various fees. These depend on usage and the service provider and can include fees for card issuance, top-ups, international transactions, or currency conversion.

Validity periods

Prepaid cards have expiration dates, similar to debit and credit cards. If a prepaid card expires, the customer can no longer use it to pay online, even if it still has a remaining balance. Cardholders can check how to transfer the balance or request a replacement card according to the issuer’s terms and conditions.

Suspended or rejected transactions

The service provider can suspend or decline transactions in various cases, such as the following:

• Insufficient funds
  
• Incorrect card information
  
• Prepaid cards not supported by the website or platform
  
• High-risk transactions
  
• Transactions or purchases exceeding set spending limits
  

Online payment security

It’s important for customers to use prepaid cards on well-known and reliable websites and apps. They should not share card numbers, card verification codes (CVCs), CVVs, PINs, or OTPs with anyone. This can help prevent data theft and unauthorized transactions. Customers must also verify details before confirming payments.

Autorenewing subscriptions

Some prepaid cards don’t support recurring payments for subscription services, such as streaming, software, or cloud services. Customers can check the terms of their prepaid cards before signing up to avoid declined transactions.

Guidelines for choosing a prepaid card payment solution for businesses

When selecting a prepaid card solution for businesses in Thailand, it is important to consider the following capabilities, functions, and features.

Supports automatic payments

For businesses primarily operating on subscription or online platform models—such as streaming services, monthly software subscriptions, or online courses—it is recommended to choose a solution that supports automated payments, recurring billing, and membership management. This helps reduce costs and the burden of in-house system development. It can also ensure a simple and convenient payment experience for customers.

Stripe supports automated payments, automated billing, and comprehensive subscription management—covering weekly, monthly, quarterly, and annual cycles—without requiring additional system customization. This enables businesses using these features to efficiently accept payments via prepaid cards.

Provides checkout pages that boost conversions

By simplifying the checkout process, businesses prioritize easy, fast, and modern payment experiences that directly boost conversion rates. This can be achieved by adopting secure, customizable checkout page solutions designed to enhance convenience while minimizing data entry and issues during checkout.

Stripe Checkout supports payments via Visa and Mastercard prepaid cards and offers flexible payment interface options to suit your business needs. This includes full-page checkout, embedded forms, and payment links. Checkout accommodates one-time payments, prorated billing, and subscriptions, helping to reduce cart abandonment, simplify transaction completion, and improve customer satisfaction.

Includes high security standards

Security is an important component of any payment system. Businesses need to choose a solution that complies with the Payment Card Industry Data Security Standard (PCI DSS) to protect prepaid card and customer data or 3D Secure for enhanced identity verification during digital transactions. This can help mitigate the risks of fraud and unauthorized transactions.

Businesses can also use Stripe Radar, which features industry-leading fraud protection technology. Radar accurately detects high-risk transactions and blocks suspicious payments in real time using AI. This boosts customer confidence and makes online payments safer.

Integrates with other management systems

It is important to choose an online payment solution that integrates flexibly, securely, and easily with business systems via application programming interfaces (APIs), plug-ins, or add-on apps. This ensures that transaction data is recorded and updated in real time across platforms.

Examples include point-of-sale (POS) systems that update order statuses to “paid” and enable immediate shipment; fraud detection and prevention systems that analyze transaction risks to minimize the likelihood of attacks; and customer relationship management (CRM) systems that track transaction histories and resolve customer issues promptly.

Allows for monitoring of finances across channels

The payment solution must allow businesses to track revenue and payment statuses across channels in one place. This gives businesses comprehensive views of online payments with prepaid cards, credit cards, or other payment methods. This enables accurate sales analysis, effective cash flow management, and informed business decisions based on real data.

Products such as Stripe Dashboard and Stripe Reporting consolidate transactions and key data into a single location, providing real-time visibility into sales, payment statuses, and reconciliation. You can also view past spending history, including prepaid card transactions. This can enhance the customer experience by enabling detailed monitoring of spending and easy data access anytime.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save engineering time with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.

FAQs about online payments with prepaid cards