Your Basic Introduction to Prepaid Cards

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    With the rise in popularity of mobile payments, prepaid cards have become more popular than ever. A study from Pew Research Center shows that within just a few years (2012-2014), the number of users that use prepaid cards grew by as much as 50 percent.

    Prepaid cards have been around for a long time and they’ve come to represent one of the most preferred payment options. From their introduction in 1998, we have seen how prepaid card providers continue evolving with the times, now offering more benefits than ever before.

    Prepaid Cards in a Nutshell

    If you are reading this, it is likely that your bank doesn’t offer the features and benefits of a prepaid card. Prepaid cards allow people to control their money without having any restrictions on spending or lending. They also come with low fees for making purchases.

    A short but comprehensive guide about how these financial tools work will help make sure every aspect has been covered so there is no confusion when considering what type might be best suited for yourself based off needs like security measures or interest rates.

    Prepaid cards are no different than the traditional credit and debit card. However, unlike their bank-based counterparts there can be restrictions on how much money is loaded onto a prepaid card before it will work for purchases or withdrawals at an ATM machine.

    Prepaid cards look no different than the typical credit and debit cards. However, unlike their more common counterparts (which can be linked to bank accounts), prepaid cards are not necessarily backed by any financial institution—they’re just like cash.

    Prepaid cards look no different than the typical credit and debit cards. But unlike their counterparts, these are not linked to any bank account, you have to preload them with money before they can be used for ATM withdrawals or purchase transactions.

    How to Use Your Prepaid Cards

    Prepaid cards are an excellent alternative for those who don’t want the hassle of carrying around a credit card or a gift card. Unlike other plastic cards, prepaid cards give you more control over your funds. This makes it easier for you to use them at any store that accepts electronic payments.

    Prepaid cards are a great way to eliminate the risk of lost or stolen cash. They typically have more benefits than traditional bank accounts, too. Gone are the days when you had to choose between convenience and safety—you can now enjoy both when you use a prepaid card.

    What to Consider When Choosing a Prepaid Card

    With so many prepaid card options available, it’s hard to figure out which one will best serve your needs. Luckily you can narrow down the field by asking yourself a few key questions before choosing a prepaid card to use.

    Is loading money through direct deposits or network reloads more convenient for you? If  it is the former, it would be ideal to pick a prepaid card that has an easy-to use reload network. Another factor to consider when choosing is the fees and charges.

    To narrow down your options, look into the transactions you often do before deciding on the prepaid card that’s best for you. Understanding how you use your cards can help with the types of transactions that are most frequented.

    It’s important, for instance, to choose a prepaid card so as not to spend more than necessary on those purchases or avoid getting charged huge fees when there is no need. Essentially, it would be wise to opt for a prepaid card that offers convenience and utmost ease.