Nowadays, the best prepaid cards have become one of the most preferred financial tools by many people. Aside from the fact that they’re very easy to obtain (read: no financial and background checks needed), using them is both straightforward and effortless.
In essence, the best prepaid cards combines a lot of the amazing features of debit and credit cards in one card. That being said, it’s not surprising many people confuse them with other plastic cards as they look almost identical—there’s a card number, signature stripe at the back, and logo, among others.
However, apart from the fact that they’re not linked to any bank account, prepaid cards don’t come with a line of credit. They are not also linked to any checking accounts. To reload money on the card, users have diverse options depending on the cards they’re using.
Prepaid Card Basics
There are two primary types of prepaid cards: reloadable and non-reloadable. Just like debit and credit cards, prepaid cards can also come with fees. However, they are often way less compared to debit and credit cards. Prior to picking a prepaid card, consider it best to check any of the possible fees if they are to your liking.
In most cases, prepaid cards don’t come with monthly or annual usage fees. However, it would be best to check for ATM withdrawal fees or purchase and reload fees if there are any. The issuers are the ones who decide the fees for transactions done using the card. Ensure you do your own due diligence so you can use the card to your full advantage.
If safety and security is a priority for you, you’d be happy to know carrying your prepaid card with you is a lot easier (and safer) than carrying cash. In case of loss or theft, you can always have the card blocked so your balance is not compromised. Oftentimes, you also have the option to request for a replacement.
Not only that, any ATM withdrawals done using the card is protected by a secure PIN that only you know. Some issuers also go the extra mile by transferring the balance from the lost card to the new one so things are more convenient for the cardholders.
Prepaid Cards: Peerless and Unbeatable Benefits
If you’re considering getting a prepaid card, below are some of the unbeatable benefits you stand to gain:
Ideal for easy management of money. If you want to better manage your money, it’s a lot easier with a prepaid card. Since your spending is limited to the balance that’s available on the card, you can easily control your spending and not spend more than you are supposed to. What’s even better is you can also easily monitor your spending online and keep track of all your transactions.
It provides security. As mentioned earlier, using a prepaid card is way safer than carrying loads of cash with you. And since the card is not linked to your savings or checking account, you won’t be compromising the security of your account or any of your personal and confidential data.
It can be used for online purchases. Just like debit and credit cards, prepaid cards can also be used for online purchases. This is a big relief for many who would like to avoid all the hassles associated with shopping in malls.
Also, when you use your prepaid card for purchase transactions online, you will not only be able to save money that would otherwise go to gas for your car and other miscellaneous expenses, you can also get everything done with just a few mouse clicks. All your purchase transactions are done within minutes, without leaving the comfort of your home or office.