Prepaid Debit Cards are a boon for those who find it difficult to open a bank account due to certain criteria that they cannot meet. For example, if you are a student, you may not be welcome to open an account in a bank. Prepaid debit cards allow users to make cashless transactions at gas stations, restaurants, hotels, or even shop online.
A prepaid card can be bought from a banking institution, grocery store and most drug stores and then loaded with money in order to use it. A small fee is charged to load the money and afterwards you will be able to use the prepaid debit card just like a debit card. There are several kinds of prepaid debit cards available with different fees and privileges. Here’s how to make the best choice for a prepaid debit card.
Tip 1: Know the various cards available
Even if you cannot open an account at a bank, most will still be keen to sell you a prepaid debit card. There are several cards available, each with its own privileges and features. Some prepaid cards are available in more than one currency and are great if you are travelling out of the country. You can even gift a prepaid debit card to anyone you want. Some prepaid debit cards allow discounts on meals in restaurants. Therefore, before you buy a card, do a little bit of research to find the best option that suits you.
Tip 2: Fees
Prepaid Debit Cards charge you every time you load money to your card. Apart from this charge, there could be other charges levied that could spring unnecessary surprises on you. Some cards may charge you for negative balance in case you overdraw on it. In case your transaction is declined, you may have to incur a declination charge on the failed transaction. Read the rules and fees of the prepaid debit card carefully before you start using one.
Tip 3: Usage of Prepaid Cards
A prepaid debit card is easy and convenient to use buy may not be acceptable at all places. Some restaurants or car rentals may not accept prepaid debits cards. Before you buy a prepaid credit card, you can check your favorite eateries or preferred car rental companies for the brand of prepaid cards that they accept.
Tip 4: Fraudulent transactions
As with all other kinds of financial transactions, prepaid debit cards can also become subject to fraudulent transactions in case of theft, etc. Check the liability offered by the card in such cases before you buy one. You would not want to pay for some else’s transactions, would you?
Tip 5: Balance Limit
Prepaid debit cards come with balance limits that is the maximum amount of money that you can load on your card. Check if the card that you are opting for can be topped for the amount of money that represents your actual spending for say a week or a fortnight or even a month.