Glossary
Explore the complete prepaid card glossary from Falcon Financial Services.
Cardholder
| Term | Definition |
|---|---|
| Prepaid Card | A payment card that allows spending only up to the amount already loaded into the associated wallet. |
| Wallet | A digital account where prepaid funds are stored and managed. |
| Available Balance | The amount of money currently available for spending from the wallet. |
| Blocked Balance | Funds temporarily reserved for an authorized but unsettled transaction. |
| Transaction | Any payment activity performed using a prepaid card, including purchases, refunds, or withdrawals. |
| Declined Transaction | A transaction that is rejected due to insufficient balance, exceeded limits, disabled channels, or security checks. |
| Refund | Funds returned to the wallet after a transaction is cancelled or reversed. |
| Virtual Card | A digitally issued prepaid card used mainly for online or in-app purchases. |
| Physical Card | A tangible prepaid card used at POS terminals or ATMs (if permitted). |
| Blocked Card | A prepaid card that has been temporarily disabled to prevent further usage. |
Compliance
| Term | Definition |
|---|---|
| Prepaid Payment Instrument (PPI) | A regulated instrument that stores monetary value paid in advance, as defined by RBI. |
| Closed PPI | A prepaid instrument usable only within the issuer’s ecosystem and not regulated as a payment instrument. |
| Open PPI | A regulated prepaid instrument usable across merchant networks. |
| Small PPI | A prepaid instrument issued with minimum KYC and limited usage capabilities. |
| Full KYC PPI | A prepaid instrument issued after full identity verification, allowing higher limits and additional features. |
| KYC (Know Your Customer) | The regulatory process used to verify user identity and determine allowed usage. |
| AML / CFT | Anti-Money Laundering and Counter-Financing of Terrorism controls applied to prepaid programs. |
| Limits | Regulatory or program-defined restrictions on wallet balance, loads, or spending. |
| Velocity Controls | Rules that limit the frequency or cumulative value of transactions over a defined period. |
| MCC (Merchant Category Code) | A code used to classify merchants and control where prepaid cards can be used. |
Developers
| Term | Definition |
|---|---|
| Authorisation | The process of validating a transaction by checking balance, limits, channels, and rules. |
| Settlement | The stage where funds are permanently deducted from the wallet after a successful transaction. |
| Reversal | Cancellation of a transaction before settlement, releasing blocked funds back to the wallet. |
| Idempotency | A mechanism ensuring repeated API calls do not create duplicate financial actions. |
| Just-In-Time (JIT) Funding | A funding model where wallet balance is added dynamically when a transaction is attempted. |
| Tokenization | Replacing sensitive card data with a secure token to prevent exposure. |
| PAN (Primary Account Number) | The unique card number associated with a prepaid card, always securely protected. |
| Channel | Defines where a prepaid card can be used, such as POS, ecommerce, ATM, or UPI. |
| Webhook | An event notification sent to partner systems when prepaid-related events occur. |
Issuers
| Term | Definition |
|---|---|
| Issuer | A bank or RBI-authorized entity responsible for issuing prepaid cards and ensuring compliance. |
| Program | A configured prepaid product defining rules, limits, branding, and supported features. |
| General Purpose Reloadable (GPR) | A prepaid card that can be loaded and reloaded multiple times within regulatory limits. |
| Funding | The process of adding money into prepaid wallets. |
| Program Limits | Custom limits defined at a program level in addition to regulatory limits. |
| Card Lifecycle | The sequence of states a card goes through, from issuance to closure. |
| Reconciliation | The process of matching transactions, settlements, and ledger balances. |
| Reporting | Access to transaction statements, balance summaries, and audit trails. |
Enterprise Customers
| Term | Definition |
|---|---|
| Expense Card | A prepaid card issued to employees for controlled business spending. |
| Incentive Card | A prepaid card funded by a business to reward users, agents, or customers. |
| Co-Branded Card | A prepaid card issued with partner branding and custom rules. |
| Spend Controls | Rules that restrict where, when, and how much a prepaid card can be used. |
| Cash Flow Optimization | Using prepaid controls and JIT funding to minimize idle balances. |
Updated about 2 months ago