No One Will Tell You What is a Prepaid Debit Card

What is a prepaid debit card

MLMFB.COM - You must have heard cash and credit payments. There are many payment options using a card, one of them is a prepaid debit card. What is a prepaid debit card? It is an alternative to the traditional bank accounts. It offers the same features as a checking account. Some of its features are online bill payments, cellular check deposits, and direct deposits. Then, what is the best-prepaid debit card to get? Yeah, you must know it first in detail before decide what brand of prepaid debit card to use.

What are a Prepaid Debit Card and the Difference to Other?

A prepaid debit card is an alternative banking card that only allows you to spend the money you put in the card. Like a debit card, prepaid card work on all merchants that accept payment networks, such as Visa or Mastercard. But, unlike the debit card, you can only spend the amount of money you put into your prepaid card account.

When you get this card, it means you open a transaction account held by the bank. You can get this card from the retailers, bank, or the credit card company. With several cards, you can also link to a checking account to make a transfer by online. This card will make you safer and more comfortable than using cash. A prepaid debit card is easy to get because there is no credit check. It also can be useful if you are trying not to overspend because it has limitations.

The difference with a debit card is that the debit card pays now. So, you use money directly from your checking account when buying something. Or you can also withdraw money from an ATM. Then the credit card is paid later. So, you borrow money from the bank when you buy something. You just returned the loan later. Well, if the prepaid debit card is pay before. So, you have to save first in cash, check, or direct deposit before paying a transaction.

Why Do You Must Have a Prepaid Debit Card?

Basically, a prepaid debit card can replace the basic functions of the bank. You will be able to hold, track balances, and spend your funds as needed. Prepaid debit cards are often chosen by people with bad credit and do not qualify for a standard credit card. The risk is also very small because you can only spend as much as you have on the card. Unlike a standard credit card, when your prepaid debit card is lost, your balance will remain and avoid debt accumulation.

There are many other benefits of prepaid debit card that you must have. Here they are:
  1. Train yourself to be more economical

    If you are among those who often overdo shopping, prepaid cards can be the right choice for you. It is because you will not be able to spend more than what you put in. So, using this card can train you to be frugal.

  2. Have a simple process of putting money

    Reloading the prepaid debit card has a very simple process. This is perfect for those of you who do not have a lot of time for putting money.

  3. You can qualify for a prepaid debit card without knowing how your credit history is.

    Prepaid debit cards do not require any credit checks or surveys. Even though you may have a bad credit history, you will still be able to get a prepaid debit card. This can make you easier to make online purchases or bill payments.

  4. In some cases, you can use your prepaid debit card as a bank account

    In some certain cases, many employers like to deposit your salary directly to your prepaid debit card.

How Does the Prepaid Debit Card Work?

When you make a purchase with a prepaid debit card, the payment amount will be deducted from the balance on the card. When the balance reaches zero, the card becomes empty. You can just throw the card unless the card can be refilled. If you refill the prepaid debit card, you can add funds and continue using the card. Here are about how the prepaid debit cards work:
  • You can add money to the card by direct deposit, retailer, or check at the ATM. Some cards also allow you to make the online transfer or check deposit via smartphone.
  • Some prepaid debit cards have access to free national ATM networks such as MoneyPass and Allpoint.
  • You have to pay to activate the card, make a deposit and use an ATM outside the network. Some cards also charge fees for each ATM purchase and transaction.
  • Some cards have limits that you can pull, reload, or spend over a period of time. The example of the period is one day or one month.
  • Prepaid debit cards have an expiration date that you must need to republish your card after it has expired. But, the funds on the card do not expire or remain the same amount.
  • Other features are some prepaid debit cards offering check writing and online bill payments. Some of them also offer many copies of cards for family members. Even there are some that offer gifts cash back purchases, similar to what a credit card does. 

What is the Best Prepaid Debit Card?

Lists below come with great futures and perks. You can choose the best-prepaid debit card that will minimize the number of fees you must pay.

  1. NetSpend Prepaid

    You will get payments up to two days faster with direct deposit. You can also load money into your account using a mobile check deposit and recharge it in more than 130,000 locations. You can also receive money from friends and family who have a NetSpend card.

  2. Chase Liquid Card

    This card does not have a fee to open an account, but you must enter the Chase branch to do so. There is a monthly fee of $ 4.95, but there is no fee to activate and replace the card for lost or stolen cards. The fee is also $ 2.50 charged when you use a non-Chase ATM for withdrawals.

  3. Walmart Moneycard Visa With Cashback

    This card is equipped with free direct deposit, cellular deposit check, and online bill payment. A $ 5 monthly fee will be removed as long as you load $ 1,000 or more on your card the previous month. Refill fees up to $ 4.95 depending on the method and location of refills and ATM Withdrawals are charged at $ 2.50 per transaction.

What’s your opinion after knowing what a prepaid debit card is? If you think it is appropriate for you, make sure of yourself. You must understand every potential cost you will face before you start to use a prepaid debit card.

Subscribe to receive free email updates:

0 Response to "No One Will Tell You What is a Prepaid Debit Card"

Post a Comment