Prepaid Debit Cards

Advantages and Disadvantages of Prepaid Debit Cards



Prepaid debit cards are issued by most credit card companies, such as Visa, American Express and Mastercard. In this instance, funds are added to a prepaid debit card at a retail location or through an online bank. The prepaid card works very much like a prepaid phone card.

Basically, prepaid debit cards are cash that has been applied to a plastic card so that the funds can be accessed electronically. These cards are set at a limit that is identical to the amount deposited. Each time you use the card, the amount on the prepaid debit card decreases until it reaches zero funds.

Prepaid debit cards have a wide range of benefits. They are much safer for consumers to carry than cash and they can be used in all countries in the world, depending on the company you chose to obtain a prepaid debit card from. Mastercard, American Express, Visa all offer these cards, as do some banks.

Other benefits of prepaid debit cards include not having to worry about a monthly credit card bill or debt. Any person who is over the age of eighteen can carry a prepaid debit card, regardless of their credit history. Even those with extremely poor credit can access a prepaid debit card because they have to have the funds before the card is issued.

Prepaid debit cards can easily be re-loaded by phone or online as long as there are funds available. This allows easy access to electronic funds when on vacation and during business travel. Many companies are now using prepaid debit cards in place of expense accounts or company credit cards.

As with any other type of card the fees for prepaid debit cards can be astronomical. There are fees attached for getting the card, re-loading it, for going over the limit, cashing out the card and canceling it if you should decide to do so. The cards with the lesser fees are the best to use, so check around to see which companies are offering the best deals. The average cost for re-loading a prepaid debit card is around $5.00, so be sure to add enough funds to cut down on repeat re-loading.

Funds from prepaid debit cards can only be accessed with your PIN number. Be sure to change it often and never tell anyone what it is. It is best if you have your bank or the company where you obtain the card to put a daily maximum on it in case your card is ever stolen or in the rare instance that someone is able to obtain your PIN number.

For the most part the advantages of prepaid debit cards far outweigh the disadvantages, especially for those who cannot meet the criteria to obtain credit cards because of a poor credit history. But remember, prepaid debit cards have to be used responsibly, just as any other card. They are easily to load time after time until your bank funds are depleted. Be sure to keep records of your purchases to prevent this type of catastrophe.




Latest Credit Card News

Guaranteed Bad Credit Financing
Receive a loan or credit card even with bankruptcy!

Personal Loans & Visa Approved At Abacus
Offering Personal Loans, Credit Cards for the credit impaired. - Bad Credit Loans
Loans & credit cards for people with bad credit. Affiliates earn 75% from this extremely professional and high converting site!

How To Get Out Of Credit Card Debt
Start getting out of credit card debt today with 7 Easy Steps to Getting Out of Credit Card Debt.

Debt Free In About 3
Patent Pending process shows you how to be debt free in about 3 years, including your mortgage, cars, and credit cards.

Welcome to Subscription Services!
Hampton Roads Daily Press - EZ-Pay is the most convenient way to pay for your Daily Press subscription! Sign up one time, and it's automatically charged to your credit card or debited from your checking account. No invoices, no stamps, no hassle! Simply complete the form below ...

United pilots trying for friendlier skies
San Francisco Gate - United Airlines pilots at the carrier are stepping up a campaign of friendliness in a bid to win customers' loyalty. Under the program, you'll be more likely to see an actual pilot at the gate to explain to you why your flight is delayed. While ...

Use a windfall to invest, pay off high-interest debts
Fort Wayne Journal Gazette - You work hard to provide a good living for yourself and your family. And it may be important to you to pass the wealth you’ve accumulated to those who have depended on you. But what if the shoe were on the other foot, and you found yourself the ...

Drowning in debt
Salina Journal - As a beginning college student, Rafael Mendez was pretty typical in terms of his knowledge of finances. “I knew I had to establish credit, but I didn’t know how to do it,” said Mendez, now a senior at Kansas Wesleyan University, who graduated ...

Township officials' expenses disputed
Allentown Morning Call - Two Upper Macungie Township supervisors admit that some expenses they charged to the township over the past five years were questionable, and their actions appear to have sparked an investigation by the Pennsylvania Ethics Commission. Vincent J ...

If you want to include this posting in your blog:
ZDNet Blogs - 16% of Americans have seen their credit card used without their permission by ZDNet 's ZDNet Research -- Harris Interactive asked Americans about facing identity theft in their past.How Americans suffered from identity theft Income Total<$35K<$49.9K ...

ADA compliance, credit cards on Monday's agenda
Jackson Sun - Americans with Disabilities Act building compliance issues, the study of a new purchasing card system and another discussion of a recent county audit are just some of the topics for this Monday's Madison County Commission meeting. More than a year ...

Understanding Your Credit Score
Marion Daily Republican - (ARA) - You may have no idea who they are, but Bill Fair and Earl Isaac have tremendous power over your life - and the financial health of every adult American. They are the founders of Fair, Isaac and Co., and every credit agency in the country uses ...


credit cards

credit cards

In debt? FREE Info!
Find out how

debt consolidation ,
debt management,
debt negotiation can ...