Prepaid Debit Cards

Prepaid debit cards are the fastest growing form of non-cash payment. People are embracing prepaid debit cards for a wide variety of reasons. Prepaid debit cards can be loaded and used for shopping, online purchases, peer to peer money transfers, and most of the other functions done with a traditional debit card. Prepaid cards are safer because they are not linked to a bank account, so there is no risk of a data breach, website hacking, or machine tampering which might put your bank account information at risk or wind up with it getting on the dark web.

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What are Prepaid Debit Cards?

Prepaid debit cards are a cross between a credit card, a gift card, and a checking account debit card. They look and feel just like a credit card. In fact, some refer to them as “prepaid credit cards.” Like credit cards, prepaid debit cards are issued through one of the major credit card processors, such as Mastercard, Visa, or American Express. You can use them at any retailer or online store that accepts cards from that network.
 
Unlike credit cards, prepaid cards don’t let you buy now and pay later. Before you can spend money, you first have to “load” it onto the card–just like you do when you buy a gift card. But unlike gift cards, reloadable prepaid cards allow you to load more money on the card at any time.
 
Prepaid debit cards also allow you to get cash using ATMs, like a checking account debit card. The difference is that there’s no bank account with a prepaid debit card; money is deposited directly to the card.
 
Some prepaid debit cards allow for sub-accounts. You can provide cards to members of your family which are attached to the main account. This feature allows parents to teach their kids how to use debit cards in a safe way.
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Reasons to get a Prepaid Debit Card

There are several benefits associated with these debit cards. Here are some of them.

No credit Needed

For those with poor credit, prepaid debit cards offer an alternative to credit cards. Since you’re only able to spend money that you’ve loaded onto the card, prepaid debit cards don’t involve a credit check. Similarly, because there’s no bank account, prepaid debit cards don’t require a ChexSystems check. Nearly anyone at least 18 years old can get a prepaid debit card.

Makes Budgeting Easier

By only allowing you to spend the money you have, you get in the habit of tracking your funds. Some people use a dedicated card for a given category of expenses, like dining out. You can load a certain amount of money monthly and commit yourself to spending only what you have loaded into the card.

Prepaid debit cards can be an introduction to money management for teens. Some cards are available to users 13 and over, as a subaccount to their parents’ card. This allows parents to teach their children about financial literacy without giving them access to all the funds in their bank accounts.

Limits Risk

When traveling to locations where credit card fraud is common, a prepaid debit card sets a limit on potential losses. An identity thief can only access the amount you put on a card. When shopping online with unknown merchants, having a card that is not linked to your bank account provides additional security and protection.
 
There are many prepaid cards on the market and a vast array of features. Selecting the right card for you can be a daunting task. This website has the tools you need to find the best card for you based on your usage.

Find a prepaid card that works for you

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