Prepaid Debit Card Offers - Are They Right For You?
Prepaid debit card a smart way to rebuild credit and are available for anyone, regardless of his/her credit rating. Like credit cards, prepaid cards are convenient, widely accepted and relatively secure.
Over 10 million households in the United States alone do not have bank accounts. In cases like these prepaid cards can serve as a bank account. They can be used to access cash or make purchases at merchants such as gas stations, grocery stores or convenience stores.
Additionally, a debit card can be just as useful as regular Mastercards or Visas, because in many cases they can be used to purchase goods and services not only in shops but on the Internet and via mail order and to withdraw cash at home and abroad from ATMs.
Bankers prefer debit cards over checks because check processing is generally unprofitable. If debit cards replace credit cards for purchases, however, bankers will lose finance charges normally collected on credit cards.
Merchants like the debit card system because they get their money immediately, electronically transferred into their company account.
This system exists electronically, supported by a minimum of paperwork. Ideally, the merchant doesn't have to worry about a check being misplaced or lost, for example, or about a holdup in the store.
A Prepaid Debit Card Can Be Used Anywhere!
The process is not yet completely electronic. Debit card users still have to fill out paperwork similar to a sales slip or Master Card transcript when making a purchase. These slips are forwarded to the cardholders bank or a third-party processor who has agreed to handle debit accounts, and then deducted from the cardholders account in pretty much the same way a check is handled.
Because the debit card concept is so new, laws to define the cardholders liability in the event of unauthorized use or theft are still evolving. Consult with the institution issuing the debit card to establish the terms of your liability.
Benefits of debit cards include shopping anywhere with MasterCard or Visa logo, no credit application, more security & privacy than checking or cash,
A prepaid debit card looks like a classic credit card, but works more like a debit card. There are no finance fees or interest since charges are deducted from a balance that you pre-pay, although other fees not associated with credit cards may exist.
Once the balance is consumed by charges or ATM cash withdrawals, the card must be recharged with more funds via a cash deposit or wire transfer.
Prepaid cards have been steadily gaining in popularity because they eliminate interest charges and are a great alternative to credit cards for those with credit issues.
There are a number of fees associated with a debit card. And consumers should make sure that they are aware of all the fees involved with the debit card they chose.
A List of Prepaid Debit Card Fees You Need to Know About:
- Online Customer Service - FREE
- Balance Inquiry - FREE
- Point Of Sale Withdrawal - FREE
- ATM Withdrawal - $1.50 to $2.00
- Replace A Lost Or Stolen Card - $ 5.00 to $10.00
- Reactivate A Expired Card - $3.00 to $7.00
- Monthly Maintenance goes for - $2.95 to $9.95
- Reload Your Card - $1.00 to $5.00
The prepaid debit card is a brother to the ATM card. Both cards are merely electronic replacements for a check. They do not represent an extension of credit.
Whereas the ATM card electronically draws cash in the same way a check can, the debit card replaces a check by paying bills and making purchases via an electronic hook-up with your account.
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