Your Quick and Comprehensive Guide to Reloadable Prepaid Cards
With the world becoming more and more connected, going about one’s day using plastic cards has also become more and more common. For instance, transactions that required cash payment before like paying for car rentals, hotel reservations, and bills can now be done using a credit, debit, or reloadable prepaid card.
Of the 3 plastic cards mentioned, the reloadable prepaid card is deemed the most recent addition to today’s list of innovative financial tools. If you’re like most people, you’ve probably heard of reloadable prepaid cards.
However, do you know all the basics of this amazing tool? If not, you have come to the right place. This article is your fast and comprehensive guide to reloadable prepaid cards.
Reloadable Prepaid Cards: All the Basics You Need to Know
Since they share many surface similarities, it’s easy to mistake reloadable cards for debit or credit cards. However, while they look just like other plastic cards, reloadable prepaid cards have one massive feature that sets them apart from the other two—they are not linked to any bank account.
As the name suggests, the card is reloadable and has to be loaded with money first before it can be used for purchase transactions or ATM withdrawals. Unlike credit cards, reloadable prepaid cards have no credit capability and can’t be used once all the balance in the card has been depleted.
Once all the balance on the card has been consumed or depleted, the card is deemed “empty,” at least until such time that money has been loaded onto the card again. In essence, you’ll be using your own money when you use a reloadable prepaid card and not “borrowing” from the issuer.
That means each time the card is used for any transactions, the amount will be deducted directly from the balance available on the card. If the balance is not enough to cover the purchase or withdrawal, the purchase or withdrawal will be declined. The good news is it can be used right away once money has been loaded onto the card again.
As reloadable prepaid cards have become more loved, different types were introduced to cater to the varying needs of the consumers. For instance, GPRs or general purpose reloadable cards are now often used as an option for the underbanked and unbanked.
Government benefit cards, payroll cards, employee incentive cards and gift cards are also now being used as money distribution and budgeting tools. Many government organisations and agencies have also been using reloadable prepaid cards to provide incentives and salaries in lieu of conventional options like checks and direct deposit payments.
The Unbeatable Benefits of Reloadable Prepaid Cards
Aside from being the ideal tool for people who don’t have access to banks, reloadable prepaid cards also come with other peerless benefits. Obtaining a reloadable card is easy and straightforward—no need to go through those time-consuming background and credit checks. And that’s just for starters.
Since reloadable prepaid cards don’t come with credit capabilities, you will not only be able to manage your money well, you can also avoid accumulating mounting debts. In addition, you are also spared from paying those ridiculously high fees, interests, and other charges.
If you have yet to build up your credit or you have a less than desirable credit history, a reloadable prepaid card can be your consummate ally. Come to think of it, the card is not only easy to obtain, it also comes with features common among credit and debit cards.
That means you can conveniently use the card for purchase (including online purchases!) and ATM withdrawals without worrying about accumulating debt or paying for exorbitant interest, fees, and other unwanted charges.