Frequently Asked Questions (FAQs)

General

1. What is a prepaid card?

   A prepaid card is a payment instrument that allows users to spend only the amount of money that has been preloaded into an associated wallet. Unlike credit cards, prepaid cards do not provide a credit line. Unlike debit cards, they are not directly linked to a bank account. All transactions are strictly limited by the available wallet balance.

2. How is a prepaid card different from a debit or credit card?

Prepaid cards eliminate credit risk and are ideal for controlled spending use cases.

3. Who can issue prepaid cards in India?

   Prepaid cards can be issued only by:
   • Banks, or
   • RBI-authorized Non-Bank entities (NBFCs / PPIs)
     Issuance must comply with RBI’s Prepaid Payment Instruments (PPI) regulations, including mandatory KYC.

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Regulatory and KYC

1. Is KYC mandatory for prepaid cards?

Yes. KYC is mandatory for issuing and using prepaid cards. The level of KYC completed determines:

• Maximum wallet balance
• Loading limits
• Available channels (POS, ecommerce, ATM, UPI)
• Eligibility for fund transfers and cash withdrawals

2. What are Small PPI and Full KYC PPI?

   • Small PPI (Minimum KYC):
     Allows limited balance and spend, supports POS and ecommerce only, and does not permit cash withdrawal or fund transfer.
   • Full KYC PPI:
     Allows higher balances and supports additional features such as ATM withdrawals, fund transfers, and UPI.

3. What happens if a user does not complete Full KYC?

   If Full KYC is not completed:
   • Wallet balance may be capped
   • Loading may be restricted
   • Cash withdrawal and fund transfer remain disabled
   • The card may eventually be suspended if regulatory timelines are breached

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Cards and Wallets

1. Where is money stored in a prepaid program?

   Money is stored in a prepaid wallet, not on the card itself. The card is only an access instrument that allows spending from the linked wallet.

2. Can a user have multiple prepaid cards?

   Yes. A single user can have:
   • Multiple prepaid cards
   • One or more wallets (depending on program design)
     All cards draw funds from their associated wallet.

3. What is the difference between a virtual and physical prepaid card?

   • Virtual Cards: are issued instantly and used primarily for ecommerce or digital wallets.
   • Physical Cards are tangible cards that can be used at POS terminals and ATMs (if permitted).
     Both follow the same regulatory and balance rules.

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Funding and Limits

1. How can money be added to a prepaid card?

   Money can be added via:
   • Direct wallet loads
   • Business or programmatic funding
   • Just-In-Time (JIT) funding models
     All loads are subject to KYC, regulatory, and program limits.

2. Are there limits on how much can be loaded or spent?

   Yes. Limits are enforced based on:
   • PPI type (Small / Full KYC)
   • RBI regulatory caps
   • Program-defined spend rules
     Limits may apply per transaction, per day, per month, or per channel.

3. What is Just-In-Time (JIT) funding?

   JIT funding is a model where the wallet is topped up only when a transaction is attempted.
   This helps businesses optimise cash flow while still allowing seamless user transactions.

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Transactions and Usage

1. Where can prepaid cards be used?

   Depending on configuration and KYC level, prepaid cards may be used on:
   • POS terminals
   • Ecommerce websites
   • ATMs (Full KYC only)
   • UPI (where enabled)

2. Why was a prepaid card transaction declined?

   Common reasons include:
   • Insufficient wallet balance
   • Transaction amount exceeds limits
   • Channel disabled (e.g., ecommerce blocked)
   • KYC not completed
   • Card temporarily blocked or hotlisted

3. Can prepaid card transactions be refunded?

   Yes. Refunds and reversals are supported and are credited back to the wallet balance, subject to settlement timelines.

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Security and Controls

1. How are prepaid cards secured?

   Prepaid cards are protected through:
   • Tokenisation of card details
   • Real-time authorisation checks
   • Channel-level controls
   • Spend and velocity limits
   • MCC (merchant category) restrictions
     Sensitive card data such as PAN and CVV are never exposed in plaintext.

2. Can a prepaid card be blocked or unblocked?

   Yes. Cards can be:
   • Temporarily blocked (e.g., suspected fraud)
   • Permanently hotlisted (e.g., lost or stolen)
   • Replaced with a new card
     Blocking a card does not affect the wallet balance.

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Reporting and Operations

1. Are transaction statements available for prepaid cards?

   Yes. Prepaid programs support:
   • Wallet statements
   • Transaction histories
   • Load and spend summaries
     These are used for reconciliation, customer support, and regulatory audits.

2. How are prepaid transactions reconciled?

   Falcon maintains:
   • Authorisation and settlement mapping
   • Ledger-level audit trails
   • Partner-level financial summaries
     This ensures financial accuracy and regulatory compliance.

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Errors and Troubleshooting

1. What should I do if an API operation fails?

   All prepaid operations return structured error responses with clear error codes.
   Common actions include:
   • Verifying KYC status
   • Checking wallet balance and limits
   • Ensuring the card and channel are active

Each request is traceable using a unique request identifier.

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Program Design

1. What use cases are prepaid cards best suited for?

   Prepaid cards are ideal for:
   • Expense and allowance programs
   • Rewards and incentives
   • Gift cards
   • Travel and meal wallets
   • Agent or distributor payouts
   • Controlled consumer wallets

2. Can prepaid cards be co-branded?

   Yes. Falcon supports co-branded prepaid programs with:
   • Custom branding
   • Configurable rules
   • Virtual and physical cards
   • Reporting and analytics