What are prepaid debit cards?
Prepaid debit cards (also known as prepaid credit cards) work just like a debit or credit card. The only difference is that you pay money onto the card first, spend it, but you will not go over any limit, because the only limit is set by what you prepay onto the card. Unlike the traditional credit card format, you will not acquire any debt with prepaid debit cards as there are no monthly or interest charges. To apply you do not have to go through any credit checks so almost anyone will be approved for guaranteed acceptance. You can use just it like a credit or debit card to pay your bills, shop at the supermarket, buy items online and even withdraw cash from ATM machines. They are accepted throughout the world and come in the form of a Visa, Maestro or Mastercard. Remember prepaid debit cards are powered by your own money, so the amount you have on the card is the amount available to spend. This is great because it means that you will not run into debt.
Think of prepaid debit cards as alternatives to regular credit cards. They look just like their credit card cousins because they’re actual MasterCards and Visa cards. But they have different features and benefits. And one of the biggest differences is that prepaid debit cards are easy to acquire because: • You Don’t Need a Bank Account • You Don’t Need Any Credit That’s right. You don’t need any credit or even a bank account to acquire one of these cards. So there are no long applications to fill out and no credit checks. This makes prepaid cards perfect for people who have had trouble with their credit in the past. Yet prepaid Visa cards and MasterCards can be used just like any other plastic credit card. They’re accepted all over the world. So you can use them to purchase everyday in-store items, you can buy online with them, or you can even use them at ATMs. Here’s how you get one. You purchase the card from a retail store or an online store by paying a flat “activation” fee. Depend
Prepaid debit cards can refer to several different types of cards that have a prepaid amount of cash paid by the consumer on them. Sometimes when people refer to these cards they are really discussing gift cards that can be used in any location and may have a Visa® or Mastercard® logo on them. Typically these cards are sold in designated amounts and the card is usually discarded once the money is spent. More often, the term prepaid debit cards refers to cards people get from various retail merchants or online. Money on the card can be reloaded at many retail places, as needed. There are numerous prepaid debit card programs and they may be most used by people who want to keep complete track of their spending. Other potential users of these debit cards include those who prefer them as alternatives to having a bank account or who can’t get a bank account because of poor banking history. Some prefer the cards for online shopping. Though many can shop online with bank debit cards, they may
The concept is the same as a prepaid gift card, prepaid phone card, etc. You load money on to a card and this can be used at retailers’ or online merchants. Money can be loaded using cash, a bank transfer or another credit card. You have control over the money on your card and therefore control the amount you can spend so there is no risk of running into debt.
