Prepaid Debit Cards - Choosing the Right One For You
March 4, 2009 by admin
By Gary Frewer
There are several different kinds of prepaid debit cards available for consumers of all ages and occupations. All of these cards contain a prepaid amount of money paid for in advance by the consumer. Prepaid cards are different from the gift cards that are sold in grocery and discount stores. These cards usually have a MasterCard or Visa logo on the front. They look exactly like an actual credit card. These types of cards are sold in exact dollar amounts and cannot be reloaded once the money is gone. Please pay heed to a word of caution about using these types of cards. They are not issued by a major recognized bank, therefore if a purchase is made at a local store, such as a souvenir shop, the issuing card companies have been known to hold up the funds on the card for up $100 on a $5 purchase until the transaction clears which could take up to 7 days. The prepaid cards that are sold at many of the popular retail locations can be reloaded once the initial amount has been spent.
Prepaid debit cards are a great option for someone who does not have a bank account or who is having difficulty obtaining a bank account because of a bad credit rating. Other people feel more comfortable using these types of cards for online purchases. Many people are uncomfortable about using their debit or credit card for online purchases for fear that their debit card number could be stolen and the thieves would also be able to access their bank accounts. Many parents purchase prepaid debit cards for their college students. These cards will teach the student how to manage money and monitor their spending using the card.
Most people who are using prepaid debit cards have registered for a debit card program. There is typically a fee to register for these programs, but some institutions may waive the initial registration fee to attract new customers. Some banks will also charge a monthly fee and a fee for each transaction. For people with good credit, the registration fee and the transaction charges make these types of cards unappealing. Several banks offer a payroll direct deposit option making it more like an actual bank account just with higher fees.
However, if you have poor credit and want to rebuild your credit rating, the fees may be worth it. And, if you have trouble controlling your spending, prepaid debit cards may be a wise option for you. If you are thinking about registering for a prepaid debit card program, you should analyze the costs and benefits of prepaid debit cards and review the many options of available plans.
Find out more about prepaid debit cards at http://www.SpendOne.com
Article Source: http://EzineArticles.com/?expert=Gary_Frewer
http://EzineArticles.com/?Prepaid-Debit-Cards—Choosing-the-Right-One-For-You&id=2014994
