Using prepaid cards are great when it comes to convenience. You don’t need to carry cash and you can use them just about everywhere. When you use your card for an in store transaction, you will have the option of signing for your purchase or using your PIN to complete the transaction. Knowing the difference could be important, especially since some prepaid cards charge a fee for PIN transactions, but not for signature transactions. This brings up the importance of knowing what type of fees your card charges and knowing when you will be charged.

Signature vs. PIN
A signature transaction is when you have to sign for a purchase you made instead of entering your personal identification number (PIN). When a card has a major credit card company logo, like MasterCard or Visa, this means it can be swiped for an in store purchase where Visa or MasterCard are accepted. At the end of the transaction you have to sign your name agreeing to cover the purchase amount.

A PIN transaction is when you use your personal identification number to complete your transaction, much like a bank debit card. Your PIN is a unique set of numbers or letters that allows you to access your account. You can do so by making a purchase or from an ATM. In many cases, the PIN is what allows you to make a purchase and not have to show identification. Its a way to prove the card is yours. A PIN offers security for your account because only the person with the PIN number can access the account. This is why you shouldn’t give out your number.

How Do I Know Which One To Use?

It’s important to understand that PIN and signature transactions are identical in terms of your account balance. In both cases, the amount of the purchases is subtracted from your prepaid card account. The difference, for some cards, is in the amount of fees charged. If your card charges a fee for a PIN transaction, then the choice is easy–use a signature transaction. You can choose a signature transaction by processing the transaction as a credit, rather than a debit. In some cases, the machine you use to swipe the card will ask you for your PIN, even if you have selected a credit transaction. In many cases, simply hitting the cancel button instead of entering your PIN will cause the device to process the transaction as a credit signature transaction.

Merchants Processing The Transactions

So why do some prepaid cards charge for PIN transactions but not for signature transactions? The answer has to do with how much money they make from the merchant on the transaction. Typically, a signature transaction costs more for a merchant to process than does a PIN transaction. Because the prepaid card company makes more from the merchant on a signature transaction, many of them pass the savings on to cardholders.

One of the easiest ways to load money on a prepaid credit card is through an online transfer from a bank account. Bank transfers are free with the best rated prepaid cards, and it can be completed online. There are, however, a few steps to take, and setting up the process can take a few days. In this article, we’ll walk through step-by-step how to transfer money from a bank account to a prepaid credit or debit card. Having just done this with a Mango MasterCard, we’ll use Mango as our example.

Step One: Get the Account Number and Routing Number

The first step is to get the account number and routing number associated with your prepaid card. The account number is a unique number that identifies your prepaid card. The routing number identifies the bank that issued your prepaid card. With Mango, it’s easy to get these numbers. Simply log into your Mango account, select Add Money from the menu, and the account number and routing number will be listed under the heading to add money from a bank account.

Step Two: Add Your Prepaid Card to Your Bank Account

To transfer money from your bank account to another account not associated with your bank, you have to set up an external account. While the process varies from one bank to the next, the basic steps are the same. Log in to your bank account and navigate to where you can transfer money. Your bank should have a place where you can set up an external account. Here you can use the account number and routing number of your prepaid card to create an external account. If you run into problems, call your bank and they should be able to walk you through the process.

Step Three: Test Deposits

Before I could transfer money to the Mango card, my bank sent two small test deposits to the card. Once the deposits were reflected in my account, I logged bank into my bank and entered the amount of both deposits. This verified for the bank and for me that any future money transferred to the card was actually going to my prepaid card. Once this verification is complete, you should be able to transfer money from your bank to your prepaid card.

Step Four: Transfer Money

Once your prepaid card is setup with your bank, transferring money is simple. Go to the transfer page on your bank’s website, and select the amount you want to transfer, the account to transfer the money from, and your prepaid card. Transfers generally take one business day, so it’s important to note that the money will not be available on your prepaid card immediately.

Once you’ve received your prepaid credit card, the first step is to activate the card. Activation is critical because it not only enables the prepaid card to be used, but it also registers the card in the event that it is lost or stolen. Although the steps to take to activate a prepaid card vary from one card to the next, most cards follow a similar process. And virtually all prepaid cards can be activated online. Here are the steps to take to activate some of the more popular prepaid credit and debit cards.

AccountNow Prepaid Visa or MasterCard: To activate your AccountNow card, simply visit my.accountnow.net and select the “Activate” button. You will be prompted for your account number on the face of your card. Activating your card will give you online access to your account balance and other information.

Green Dot Prepaid Visa or MasterCard: A Green Dot prepaid card can be activated online at www.greendotonline.com/OnlineActivation. You’ll need an activation number that comes with your code, as shown in the image below:

Mango Prepaid MasterCard: Just call 1-888-389-9323, enter the card number, and answer a few security questions. Once you activate your Mango card, you can begin using it and set an ATM PIN.

Vision Prepaid: Whether you have the Vision Premier, Preferred, or Load ‘n’ Go prepaid card, you can activate your card online at www.visionprepaid.com/activate.html. Once your Vision application is successful, you will receive you card in about 7 to 10 days. To activate the card, simply call the telephone number on the back of the card.

Prepaid Rushcard: Simply load funds onto your RushCard using one of the many convenient ways to add money. At the time of your initial deposit, you will be charged a one time card Activation Fee (amount based on your RushCard Plan). This amount will be immediately deducted from your balance.

Walmart MoneyCard: Visit https://www.walmartmoneycard.com/OnlineActivation/ to activate your Walmart MoneyCard online. You will need your activation number from your sales receipt and the last four digits of your temporary card number.

Yap Prepaid Card: Your YAP Card will arrive in the mail 7-10 business days after you order it. To activate your card, just call the number on the card or visit this section of our Web site. Once you activate your YAP Card, you can begin using it immediately anywhere MasterCard is accepted. As soon as you enroll you will also have access to an Instant YAP MasterCard virtual card. You can use it to shop online or by phone anywhere MasterCard debit is accepted worldwide.