Reloadable Prepaid Card: What are Your Reloading Options?
Nowadays, many people have turned to reloadable prepaid cards and with good reason. For starters, reloadable prepaid cards are way easier to obtain than credit or debit cards. That means you don’t have to go through those stressful and time-consuming checks just to get your hands on one.
In addition, many people now prefer using reloadable prepaid cards over other options as it allows them to enjoy many of the benefits offered by other plastic cards minus all the hassles, inconvenience, and the exorbitant fees and other charges associated with the latter.
Reloadable Prepaid Cards: The Essentials
If you’re like most people, you’re probably considering getting a reloadable prepaid card or you already have one. Regardless of the category you belong in, below are some of the reloadable prepaid card basics you need to know so you can use the card to your full advantage and enjoy all the benefits they have to offer.
As the name implies, you won’t be able to use your reloadable prepaid card unless there’s money loaded onto it. The good thing is as long as money has been successfully loaded onto the card, you can use it right away for purchase transactions or ATM withdrawals.
You can also reload money on your prepaid card as many times as you wish, at any time you deem convenient. Depending on the issuer, there are several ways you can load money on your reloadable prepaid card. Some of the reloading options available at your disposal include:
- Reloading money through a secure online portal
- Transferring money from a financial institution or bank
- Transferring money from a Paypal account
- Having an employee deposit the paycheck onto the card
Different Types of Prepaid Cards
Prepaid cards are either reloadable (reusable) or non-reloadable (single-use). Rebate cards, gift cards, and promotional or incentive cards are some classic examples of non-reloadable prepaid cards.
This means once the balance on available on the card has been depleted, it is deemed useless and can’t be used again. Users don’t have the option to reload money on the card as well.
Also, in most cases, the cards are designed to be only used at single merchant or retail chains. They are also not redeemable for cash and cannot be used when you are overseas.
A reloadable prepaid card on the other hand is designed for repeated use. That means money can be loaded and reloaded onto the card as the cardholder wishes. Some of the classic examples of reloadable prepaid cards include payroll cards, cards that are used to receive government benefits, and single-purpose reloadable cards.
Ideal Reloadable Prepaid Card Users
Prepaid cards are considered ideal for different types of consumers. Some of the people who’ll benefit from using reloadable prepaid cards include:
People who are unbanked or those who are not qualified to get credit cards
Reloadable prepaid cards are especially attractive for those who are not qualified to get credit cards or debit cards. Aside from making things easier for the unbanked and underbanked (read: they allow direct deposits, online bills payments, ATM withdrawals, online purchases, etc.), they won’t also have any impact on your credit history.
In addition, people who have less than desirable credit histories can still easily get their hands on a prepaid card without going through all the hassles associated with credit or debit card applications.
People who would like to manage their finances well
Reloadable prepaid cards are also considered a very helpful financial tool for those who would like to curb overspending and manage their finances accordingly. Unlike credit or debit cards, you’ll be using your own money so there is no risk of accumulating mounting debts or paying for costly monthly interests, fees, and other charges.