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.
A simple and free way to load cash onto a prepaid debit card
All prepaid cards charge fees. There are a select few, however, that you
Several popular prepaid debit cards come with a high yield savings account option.
A simple and free way to load cash onto a prepaid debit card is to use a bank transfer. You can transfer money online, and
All prepaid cards charge fees. There are a select few, however, that you can use completely free. You just need to know which cards and
Several popular prepaid debit cards come with a high yield savings account option. These accounts can pay as much as 5% APY or more on
What are Prepaid Debit Cards?
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.