Are you looking for an effective way to curb overspending and manage your money more effectively? You would be glad to know that you have a great ally in reloadable prepaid cards. While relatively new in the plastic card space, reloadable prepaid cards have earned their rightful place in the hearts and wallets of many people.
Nowadays, reloadable prepaid cards are also considered one of the most innovative financial tools people have access to. Thanks to their unmatched benefits and the peerless ease and convenience they offer, reloadable prepaid cards have become a staple in the wallets of most consumers.
Over the years, there has been a meteoric rise in the popularity of reloadable prepaid cards. So far, it has not shown any signs of slowing down. This is not surprising however as more and more people are discovering the amazing benefits only reloadable prepaid cards can offer.
Moreover, many people are now using prepaid cards to supplement some banking needs they don’t have access to. Also commonly referred to as pay-as-you-go-cards, prepaid cards function just like most credit cards when used for purchases. However, while they have similarities with credit cards, they also have very distinct differences.
One major difference between prepaid and credit cards is this: prepaid cardholders will be spending their own money when they use prepaid cards, whereas credit cardholders will be “borrowing” money from the provider. Another difference is unlike debit or credit cards, prepaid cards are not linked to any bank account.
Since you won’t be borrowing money when using prepaid cards, you need to load money onto your card first before you can use it for purchase transactions (merchant or online) or ATM withdrawals. Also, once the balance on the card has been depleted, prepaid card users won’t be able to use the card for the time being.
Fortunately, if you are a prepaid card user, you have the option to load as many times as you deem fit and convenient. You also have several options available at your disposal which makes using prepaid cards all the more convenient. Also, as soon as the balance has been loaded, you can use the cards right away.
What makes reloadable prepaid cards all the more amazing? Loading money onto the card is both straightforward and quick. As soon as the money has been loaded, the card can be used immediately and you can use it for whatever transactions you like, purchases or ATM withdrawals.
Getting a Reloadable Prepaid Card? Keep the Following Essentials in Mind
If you are considering getting a prepaid card, below are some of the things you need to keep in mind:
Because of their surface similarities, it’s easy to mistake a reloadable prepaid card with the conventional debit and credit cards. Just like other plastic cards that were introduced before it, reloadable prepaid cards have a card number and a magnetic strip. Some prepaid cards also come with smart chips for added security.
When you use prepaid cards for purchase transactions, reloadable prepaid cards work just like most credit cards. In other words, you will type in/provide the card number. When you use your prepaid card for merchant transactions, the card is swiped. Also, just like ATM cards, withdrawing money will require the use of a PIN.
When loading money on your card, you also have several options available at your disposal. Some of the most common reloading options you can look into include:
- From banks to your card
- Through direct deposits
- Through secure online portals
- Through stores or outlets
