Maintaining an engaged workforce is top of mind for many employers. Implementing effective employee reward and incentive programs with gift cards is a flexible, easy way to keep employees happy and provide positive reinforcement that fits any budget.
When selecting the gift cards to use in your program you can select either prepaid cards or branded gift cards. Prepaid cards are retailer agnostic and come primarily from Visa® and Mastercard® while branded gift cards are usable at one specific retailer. Both products offer flexibility, easy delivery and convenience for program administrators and program participants alike.
What Are Prepaid Reward Cards?
Prepaid reward cards are payment cards preloaded with a set amount of funds, typically issued through major networks like Visa or Mastercard. Unlike branded gift cards, which are tied to a single retailer, prepaid cards can be used almost anywhere these networks are accepted. Some providers also offer the ability to restrict spending categories, allowing employers to guide card usage toward specific wellness or engagement initiatives. For example:
These cards offer a familiar and user-friendly experience for recipients, making them especially valuable in large or diverse workforces where flexibility and ease of use are key.
Benefits of Prepaid Cards
Prepaid cards bring unmatched versatility to any reward and incentive program. Participants enjoy simple delivery of the card and the ability to spend the card balance at multiple retailers. Program administrators have the flexibility to provide card balances to fit their budget and can use filters to limit spending to a target category, like grocery stores or pharmacies.
Prepaid cards can also be reloaded without reissuing a new card and can be customized to match branding or a program theme. Since prepaid cards can provide a variety of participant experiences through the same card, they are most often used when trying to elicit specific behavior from program participants. For example, providing a card loaded with a balance that would cover a specific vaccine or preventive healthcare copay, while limiting spending to only pharmacies.
The card itself drives participants to take the action suggested by the administrator, while still providing a flexible, positive experience.
| Feature | Prepaid Cards | Branded Gift Cards |
|---|---|---|
| Spending Flexibility | ✅ Usable anywhere major cards are accepted | ❌ Limited to one specific retailer |
| Customizability | ✅ Can be category-restricted (e.g., groceries, wellness) | ⚠️ Limited customization options (restrictions tied to retailer) |
| User Experience | ✅ Broad choice = high recipient satisfaction | ✅ Curated experience = strong emotional connection |
| Program Alignment | ✅ Excellent for goal-driven behavior (e.g., wellness initiatives) | ✅ Ideal for recognition and building “trophy value” |
| Digital Delivery | ✅ Widely available and instant | ⚠️ Available for many but not all retailers |
| Reloadability | ✅ Reloadable for ongoing programs | ❌ Typically single-use only |
| Perceived Value | ⚠️ May feel more transactional | ✅ Feels more personal and memorable |
| Best Use Cases |
- Health & wellness campaigns - Behavior-based rewards - Budget-sensitive programs |
- Recognition and appreciation - Milestone achievements - Culture-building efforts |
Choosing a provider
When selecting a prepaid card provider, look for more than just the cards themselves. Key considerations include:
- Customization options: Can you brand the card delivery or align rewards with campaign themes?
- Category controls: Can you restrict usage to align with wellness or engagement goals?
- Reporting tools: Will you have access to real-time data to track distribution?
- Customer support: Does the provider offer responsive assistance for both you and your recipients?
A strong provider is a strategic partner—not just a vendor.
Digital delivery of prepaid cards
One of the biggest advantages of prepaid cards is the ability to deliver them digitally. This enables:
- Instant recognition for achievements or milestones
- Cost savings on physical production and shipping
- Improved accessibility, especially for remote or hybrid teams
Digital cards can be sent via email or text and often include tracking tools so employers can monitor redemption rates and ensure employees receive their rewards.
How to measure the ROI of your incentive program
To evaluate the return on investment (ROI) of your incentive program, consider both quantitative and qualitative metrics:
- Participation rates in wellness or engagement initiatives
- Employee satisfaction scores before and after reward implementation
- Retention and absenteeism rates
- Feedback surveys to gauge how rewards are perceived
Tracking these KPIs helps determine whether the reward mix—including prepaid or branded cards—is driving the behavior and outcomes you intended.
Branded Gift Card Experiences
Branded gift cards create a curated experience by tying the reward to a specific retailer. This can make the reward feel more personal and memorable, especially when aligned with the reason it was issued. For example, a restaurant gift card may reinforce a message of appreciation, while a fitness retailer card might complement a wellness challenge.
These cards can help build what’s often called “trophy value”—a lasting association between the reward and the experience it enabled.
When should employers use branded gift cards?
Branded gift cards are ideal when:
- You want to reinforce a specific company value or theme
- You’re recognizing a significant milestone or achievement
- You aim to create a lasting, memorable reward experience
Because they create a defined experience, branded cards are particularly impactful in organization-wide campaigns or one-time recognitions where emotional resonance matters.
Both prepaid reward cards and branded gift cards offer valuable tools for boosting engagement, supporting wellness, and rewarding employees in meaningful ways. By selecting the right type of card—and the right provider—you can tailor your program to meet specific goals and deliver a more impactful experience for participants.
Ready to enhance your rewards program? Learn how we can help you implement prepaid cards with ease and flexibility.
Issuer Statement: Visa eReward Cards are issued by Pathward, N.A., Member FDIC, pursuant to a license from Visa U.S.A Inc. Cards can be used in the U.S. and District of Columbia everywhere Visa debit cards are accepted. See Cardholder Agreement for details.
