Prepaid cards are a great banking alternative for those that can’t qualify for a traditional bank account. The reason is because in many ways these cards function like bank accounts do. They provide users with a safe place to keep their money and provide a variety of money management tools. Anyone can qualify for a card and these cards are designed to keep the user from accumulating any sort of debt. Here are four benefits of using a prepaid card as your banking alternative.
They Are Low In Cost
Often prepaid cards get a bad wrap for charging high fees. While there are cards that do charge high fees, there are other cards that have very low fees. If you don’t have a prepaid card or bank account, you can expect to be paying a fee for getting your paycheck cashed and those fees add up. AccountNow reports that it cost on average about 2.25% to cash your paycheck. If you have a prepaid card, you can sign up for direct deposit and get your paycheck or benefits check automatically deposited to your card account for free. You can also save money when you pay your bills with your prepaid account. This will allow you to avoid money order and postage fees to pay your bills because you can pay them online instead.
They Are Fast
Using a prepaid account allows you to have access to your money at all times. You will be able to do your online banking done from your home, work, or anywhere with internet access. If you use direct deposit and online bill pay, you can avoid unnecessary trips to the check cashing center and long lines at the bank.
They Are Convenient
You can use your prepaid card to shop online, pay bills, and purchase goods or services anywhere Debit Visa or MasterCard is accepted. You also have the option to withdraw cash from your prepaid account at ATMs worldwide. Unlike years ago, the world is accustom to plastic and even if you can’t get approved for a traditional bank card, you can get approved for a prepaid card.
They Are Safe
It is safer to keep your money in prepaid card account than it is to carry cash. Unlike cash, your prepaid card is protected against unauthorized purchases with Visa’s Zero Liability or the MasterCard Zero Liability coverage. In addition, if you choose a prepaid accounts that is FDIC insured by the federal government it will guarantee your money and protect you from the risk of identity theft.