What is prepaid card
A prepaid debit card is like a gift card it has money stored in it which allows you to spend whatever you need. Once the balance is spend you can recharge the card online or a participating store, or at an ATM, or other physical location.
A prepaid card which is also called prepaid debit card, or a stored value card. You can buy prepaid cards at online and many stores.
Prepaid card looks like a credit card and many prepaid card come with the Visa or MasterCard logo.
Use of prepaid card
• Prepaid card is safe way to carry money around. Cash don’t come with any protection, while Prepaid cards come with certain consumer protections.
• Can be useful in online purchases.
• Makes more attractive gift than a cash.
Many prepaid card maintenance fee is very high compare to most debit cards.
Anyone who wants to control their budget or someone who has trouble managing credit card, can consider using a prepaid card.
Some employers pay their workers with prepaid card called payroll cards. There are many government benefits that are also available via prepaid cards, including social security.
The fees prepaid card charge?
Prepaid card come with an assortment of fee that will eat your cash balance, Sometimes there is a fee every month just to have the card.
You might have to pay fee to:
• For buying a card
• If you want to add money to the card
• Buying something with the card
• If you are checking the card balance
• Using an ATM with your prepaid card
Many prepaid cards have extremely high fees. You might find many other options with lower fees.
How to choose a prepaid card
If you decided to use a prepaid card then
• Check the price you will have to pay for each month
• Compare with other card and see which has lower fees
• Don’t buy a card just because you like the celebrity promoting the card. It may have higher fees than other prepaid cards.
Prepaid cards may be popular but most of them do not help you to help build a credit history. Businesses look at your credit history before they give you a loan, a credit card, or sometimes a job. You might find ways to spend your money that are cheaper than a prepaid card.