Do you want to save money and curb overspending but don’t know how to go about it? Getting a prepaid card is your best option. In just a few short years, the number of prepaid card users have grown by an impressive 50 percent thanks to the amazing and enticing benefits they offer.
Prepaid cards have always been one of the best payment options nowadays. However, it has also evolved into something more helpful. The flexibility that these types of cards offer has earned a place in the wallets of many. In the business world, many have also turned to using prepaid card for business.
Prepaid Cards: Your Quick Introduction
Are you considering getting a prepaid card? Or do you have one but don’t know how to use it fully yet? This article is for you! Many people are using prepaid cards nowadays because they want more privacy and security and they want to have more control over their finances. Fortunately, a prepaid card allows them to do that and more.
Prepaid cards look like the typical conventional cards like debit and credit cards. However, unlike the two, prepaid cards are not linked or tied to any bank or checking accounts. And just like the name implies, prepaid cards need to be preloaded with money before they can be used.
Prepaid cards are considered more ideal that debit or credit cards since users won’t need to borrow money from any financial institution. With a prepaid card, all the transactions—ATM withdrawal or purchases—will be deducted in real time and will be deducted from the available balance on the card.
Prepaid card users are not only spared from accumulating massive debts, they are also spared from paying those over-the-roof monthly interest, fees, and other charges. In some instances, credit card users have to deal with mounting interests and late charges when they are unable to pay their dues on time.
Fortunately, aside from being a great tool for the unbanked, they are also great tools if you want to protect yourself or your money from inflation and from products that might become obsolete. Gift cards are often mistaken for prepaid cards since they look more or less the same but they share many distinct differences.
Unlike gift cards that you can use only once, prepaid cards can be used repeatedly as long as you are able to load money onto the card successfully. With prepaid cards, you call the shots when it comes to the frequency you will load money onto the card and the amount you will load. This also includes the mode of reloading that you prefer.
Prepaid cards are also ideal if you are not a fan of carrying a huge amount of money with you anywhere you go. They are also considered ideal if you need quick access to money or when you want to make online purchases. Prepaid cards can also be used to withdraw money from affiliated ATMs.
Unlike gift cards, prepaid cards are typically associated with established and known financial and credit institutions. This means they are honored and accepted in many establishments worldwide. When the balance on the card has been depleted, you won’t be able to use the card for the time being.
When the balance is not sufficient for the transaction, your transaction will be declined. However, as soon as you can load money successfully, you can use the card right away and the amount of the transaction will just be deducted from the available balance that’s on your card. Often, you will also receive a text confirmation of your transaction.