Through the years, prepaid cards have seen a huge spike in popularity. Considering all the enticing, unbeatable, and amazing benefits prepaid cards offer, its popularity is not surprising at all. While used almost the same way as other plastic cards, prepaid cards are not difficult to use and obtain.
Prepaid card users can attest these ingenious financial instruments can be very helpful as long as they are used properly. If you are a cardholder, it’s not enough that you know the basics of how to use the card. It is important that you know the ins and outs so you can make the most out of it.
Equally as important is knowing the mistakes you should avoid so you can fully enjoy all the benefits your prepaid card has to offer. For your quick guidance and reference, below are some of the most prevalent prepaid card mistakes to avoid at all costs:
Always loading the maximum amount.
Undeniably, it is more convenient if you load a huge amount of money onto your prepaid card in one go. However, it is not recommended. Storing money on the card can seem like a practical idea. But it is important to keep in mind that this can also be risky.
If someone knows or can guess your PIN, they can easily withdraw your money once they get ahold of your prepaid card. The card can also be used for purchase transactions, whether online or through merchants. Ideally, you need to assess your spending habits first before you decide on the amount you should load on the card.
If you use your card regularly for payments or other transactions, loading a huge amount can be practical. On the other hand, if you rarely use your card for transactions, it is recommended that you only load the amount that can cover your expenses for a certain period.
Not securing the card’s PIN.
While this is considered common sense, many people commit the mistake of writing the PINs on their card or keeping a copy of the pin in the same wallet they keep their cards. This is not recommended as you are risking losing all your money in the event that your card gets lost or stolen.
In the same manner, it is also recommended that you do not tell anyone what your PIN number is. Also, pick a PIN you can easily remember but a combination that is hard for others to guess. No matter how tempting, don’t use your birthday.
Not reading the fine prints.
It’s very rare that people bother to read the terms and conditions of services or products they use and prepaid cards are no exception. Unfortunately, it’s safe to assume most prepaid cardholders forgo reading the fine prints. However, reading the fine print is crucial if you want to fully enjoy all the amazing benefits your prepaid card can offer.
The wonderful thing about prepaid cards is they are user-friendly so you don’t really need much time to learn how to use them. What’s even more impressive is it is easy to obtain and use but it spares you from all the trouble and hassle associated with using their counterparts like the debit and credit cards.
With prepaid cards, you also won’t need to provide any financial or personal documents just to obtain one. You can also load money onto your prepaid card at any time you deem fit and convenient. You get to also decide the amount you will load onto the card so you call most of the shots.
