Prepaid Card Essentials You Should Know

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When they were first introduced many years ago, prepaid cards already made a great impression to many people. However, when famous personalities like the Kardashians and Disney came up with their own versions of prepaid cards, their popularity soared even more.

Some people have the impression that prepaid cards can only be used only once. However, this has been proven untrue by many. While they are often mistaken for gift cards, they are actually different. For starters, prepaid cards can be used countless times as long as there is balance available on the card.

Nowadays, many people now see prepaid cards for what they really are, a powerful financial and money management tool that’s designed to stay for a long time. Not only that, prepaid cards are also considered inclusion tools, a convenient payment method, and the ultimate travel companions.

In fact, prepaid cards are now being used for social benefit disbursements and a secure means for organisations and businesses to pay their employees. If you are considering getting a prepaid card, below are some prepaid card basics you need to know:

You have the option to pick a prepaid card that suits your lifestyle.

Nowadays, there are many prepaid cards available in the market. That said, picking the one that will suit your needs best can be challenging, with several options to choose from. Fortunately, a few clicks of the mouse and a quick Google search can help you find the best prepaid card that’s just right for you.

To make your search easier, you need to first take into account how you manage and spend your money. From there, picking the prepaid card that will fit your needs best should come easy. It would also be a good idea to check out the website of the prepaid card you intend to obtain so you will know how to make it work for you.

Prepaid cards have different features depending on the issuer.

Since prepaid cards are issued by various providers, it is understandable that they also come with various features. However, there are also common features that they share. For instance, prepaid card issuers have plenty of options when it comes to loading money onto their cards.

Some of the loading options included are loading money through cash retailers, through direct deposits, and through secure online portals. Users also call the shot when it comes to the number of times they can load money on their cards. Often, they can load daily, weekly, monthly, or whenever they deem fit.

Prepaid cards are not the same as debit cards.

While debit cards and prepaid cards share a few surface similarities, they have one massive distinction. For starters, debit cards are linked to checking accounts while prepaid cards are not connected to either checking or savings accounts. Another distinction is prepaid cards need to be loaded with money first before it can be used.

The good thing is once you are able to successfully load money on your prepaid card, you can use it for purchase (merchant or online) transactions and ATM withdrawals. Also, once balance on the prepaid card has been depleted, spending stops automatically. With a debit card, overspending is highly possible.

Prepaid cards offer many enticing and exciting benefits.

Prepaid cards offer a lot of benefits for users. For starters, prepaid cards can help you manage your spending. As mentioned earlier, when there is no balance left on the card, spending stops automatically. If you don’t want to spend more, you can choose not to load money on your prepaid card for the time being.

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